By Michael Snyder
Not too long ago, the elite were trying to put a happy face on our growing economic problems. It was obvious that things were trending in a very alarming direction, but they kept assuring us that any bumps in the road were just temporary and that a new golden age of prosperity was just around the corner. Needless to say, there were dead wrong, and now some of them are publicly admitting the truth. For example, JPMorgan Chase CEO Jamie Dimon just publicly stated that an economic “hurricane” is rapidly approaching…
Jamie Dimon is no meteorologist, but the JPMorgan Chase CEO is predicting an economic “hurricane” caused by the war in Ukraine, rising inflation pressures and interest rate hikes from the Federal Reserve.
“Right now it’s kind of sunny, things are doing fine. Everyone thinks the Fed can handle this,” Dimon said at a Bernstein conference. “That hurricane is right out there down the road coming our way.”
JPMorgan Chase is one of the most important financial institutions in the entire world.
So it is a really big thing for Dimon to make a statement like this.
Of course he is right on target. An economic hurricane is coming, and it is going to be far more horrible than most Americans could possibly imagine right now.
Treasury Secretary Janet Yellen also just said something that is making a lot of headlines.
Last year she insisted that high inflation would just be “transitory”, but now she is openly admitting that she “was wrong”…
“I was wrong then about the path that inflation would take. As I mentioned, there have been unanticipated and large shocks to the economy […] that I, at the time, didn’t fully understand.”
.@SecYellen on inflation being transitory: "I was wrong then about the path that inflation would take. As I mentioned, there have been unanticipated and large shocks to the economy […] that I, at the time, didn't fully understand." https://t.co/AlrXn4kT0r pic.twitter.com/9tqxo0iA3B
— The Hill (@thehill) June 1, 2022
It isn’t exactly a surprise that she turned out to be completely wrong about high inflation being transitory.
We knew that she was wrong when she said it.
But I will give her credit for publicly admitting a mistake. Many in Washington will never do such a thing under any circumstances.
At this point, it should be obvious to everyone that we are in the midst of an absolutely horrifying inflation crisis.
On Wednesday, the average price of a gallon of gasoline in the United States jumped another nickel to $4.67. But the real story is the crazy prices that we are starting to see out on the west coast. For instance, one gas station in Los Angeles is now charging more than 8 dollars a gallon for regular gasoline…
A Chevron station in downtown Los Angeles on the corner of Alameda Street and Cesar E. Chavez Avenue is charging customers over $8 for regular gasoline causing some locals to complain about price gouging, KTTV Los Angeles reported on Tuesday.
In a statement to KTTV, Chevron pointed out that the majority of its California branded stations are independently owned and that “unique” factors are contributing to gas prices in the Golden State.
How soon will we see someone break the 10 dollar a gallon threshold?
Will it be by the end of the summer?
In some cities, the price of a gallon of gasoline is already higher than the hourly minimum wage.
That is nuts!
Of course diesel prices have been rising even faster, and this is putting a tremendous amount of financial strain on America’s farmers. If you doubt this, just check out what Texas Agriculture Commissioner Sid Miller just told Maria Bartiromo…
When Bartiromo noted “filling a tractor daily now costs farmers $1,000 – twice what it was a year ago,” Miller responded, “it’s through the roof, but it’s not just diesel.”
“It’s fertilizer prices. It’s parts. We can’t get new tractors, new combines. We can’t get new tillage equipment,” he stressed. “So we have to keep running our older equipment, which we can’t get parts for. And so it’s just a whole comedy of errors, and it just multiplies on top of itself.”
When costs go up for farmers, they inevitably get passed on to consumers.
And we have already been seeing food prices spike dramatically. Just check out these numbers from April…
Food grains—including corn and wheat—were up 2.8 percent for the month and 45 percent compared with a year ago. Feed grain prices increased 7.8 percent from the prior month and 33 percent from a year ago.
The poultry and egg index jumped 22 percent from March and 94 percent from a year earlier. The April market egg price, at $2.21 per dozen, is 81.0 cents higher than March and $1.64 higher than April 2021. The price of chickens raised for meat, at $1.05 per pound, is 15.3 cents higher than March and 49.7 cents higher than a year ago. At 95.3 cents per pound, the April turkey price is 2.5 cents higher than the previous month and 18.5 cents higher than April 2021.
Milk prices climbed 4.12 percent in April and are up 47 percent compared with a year earlier.
In the entire history of our nation, we have never seen anything like this.
But as I keep warning my readers, this is just the beginning.
In fact, one prominent Texas farmer is warning that food prices “are going to double”…
“People don’t realize what’s fixing to hit them,” said Texas farmer Lynn “Bugsy” Allen.
“They think it’s tough right now, you give it until October. Food prices are going to double.”
Can you imagine that?
Can you imagine what it will do to our country if food prices double from their already extremely inflated levels?
People will go absolutely bananas.
But this is exactly the type of scenario that I have been warning about for years.
Eventually, food will become such a prime target for thieves that we will actually see armed guards escorting grocery store delivery trucks.
And civil unrest will erupt all over the planet as millions upon millions of poor people get hungrier and hungrier.
Unfortunately, even though so many are now sounding the alarm, the vast majority of the population still has no idea what is coming our way.