The acute supply shortages we have been seeing since the beginning of the health crisis are actually not something new in the history of the United States. Throughout the past century, America faced several crises, external and internal conflicts, and economic downturns. Times of shortages are far more common than people can remember, and in the old days, hoarding and panic buying already existed. People used to stock up on everyday essentials ranging from flour to toilet paper, not very different from what happens today. However, except for two periods of extreme drought, food shortages have often been second-order crises caused by political and economic tensions, not by the lack of food per se. Yet, there were other moments when multiple determinants resulted in severe shortages too, like during the Great Depression of the 1930s.
If there’s something we could learn from the supply chain disruptions induced by the effects of the health crisis is that food shortages do not mean food doesn’t exist. It means that food isn’t available on grocery shelves, where consumers can easily find it. In 2020, during the peak of the sanitary outbreak, the threat of lockdowns prompted millions of people to rush into the stores and leave shelves empty. What most people didn’t know at the time was that there were tons and tons of food waiting to be delivered, but due to transportation problems and government restrictions, they never were. Farmers and food processors were forced to dump their milk, meat, and fresh produce because they were not allowed to sell them directly to consumers due to contractual obligations. Millions of dollars worth of food were destroyed while grocery chains allegedly “struggled” to keep up with the overwhelming demand.
But if there’s one thing most Americans don’t know or are failing to consider is that another major economic collapse is looming. As we discussed in many of our previous videos, the government’s monetary response to the health crisis has pushed our national debt up to almost 30 trillion dollars, and this is something we should all be paying close attention to. We are told that because the United States is such a powerful economy, we’re allowed to take up on more and more and more debt, and everything will be just fine – which is far from the truth.
This is the kind of debt trap that drove many of the world’s leading economies to the ground, and it is just not intelligent to sit and wait to see what happens. Recently, a number of experts have been stressing that our financial system is broken. They say that regardless of what reckless investors want to believe, we’re on the verge of a financial disaster. If our markets crash and the government steps in with another trillion-dollar rescue plan we will see the entire economy going down the same financial cliff Argentina and Greece did in recent years.
The only thing preventing another calamitous economic depression right now is the fact that the American Dollar is the world’s reserve currency. But in face of an overly expanded money supply, a huge national debt, runaway inflation, and the decay of our currency’s purchasing power, major economies have started to walk away from dollar transactions and dump their Treasury Bonds, which means that in a snap of fingers, we could find ourselves in the middle of a financial collapse no one saw it coming.
When a situation like this occurs, grocers have essentially two alternatives: either they hold on to their supply stockpiles and wait until they can sell them at a higher price or they just raise the prices – period. So when food becomes a scarce commodity and prices start skyrocketing, the vast majority of the population becomes unable to buy food for their families. Only those with enough money and influence will be able to find and buy what they need at such insanely inflated prices. This is how millions of Americans were thrown out of their comfortable middle-class lives and fallen right into poverty during the Great Depression. Those people faced starvation – and we are about to see millions upon millions just like them as soon as move on to the next stage of the economic collapse.
A broken society and empty stomachs are enough to bring a country down. People will not be panic buying and hoarding. They will be fighting and stealing. We have already seen a very small fraction of that tumult during the Texas storms and the Colonial Pipeline shutdown. Only this time, things won’t come back to “normal”. There will be no normal anymore. The will only be chaos. The big question is: are you ready?