Many of the imbalances that are adding to the horrible lacks that we are currently witnessing are not going to be resolved any time soon. Since I started The Financial Collapse Blog, I have actually been cautioning that outsourcing the production of almost whatever and running huge trade deficits every year would ultimately have very major repercussions down the road. Well, now we are formally “down the roadway”, and our incredibly silly trade policies have put us in an extremely precarious position. During the “great times”, being extremely based on the remainder of the world to make stuff for us wasn’t an issue, and now it is quickly ending up being a nationwide security problem.
For instance, without a stable flow of computer chips, our society as it is created today merely could not operate. We require computer system chips for our lorries, for the trucks that transport all of our goods, for the farm devices that produces our food, for the very sophisticated devices in our hospitals and for the millions upon millions of electronic gadgets that link to the Internet.
The global chip lack has been a really uncomfortable reminder of how exceptionally dependent we have ended up being on innovation, and it has actually likewise shown us how risky it was to contract out production of the majority of our chips to Asia.
Back in 1990, the United States produced 37 percent of all computer chips on the planet.
Today, that number has actually fallen to just 12 percent.
Business leaders are now vowing to begin ramping up production here in the U.S., however that will take an extended amount of time, and Intel’s CEO is freely confessing that the present shortage of chips might take “a number of years” to be dealt with …
Intel Corp’s (INTC.O) CEO stated on Monday it might take a number of years for an international lack of semiconductors to be resolved, an issue that has actually shuttered some vehicle assembly line and is also being felt in other areas, consisting of consumer electronics.
Sadly, there are numerous other industries where our outsourcing makes us very vulnerable.
Did you know that 60 percent of all apple juice that is offered in this country now comes from China?…
Taken together, these laws explain why the apple orchards near my home town disappeared. Almost 60 percent of the apple juicesold in the United States comes from China, even though most of America has an environment conducive to apple production. The problem is so bad that salmon caught in the United States is delivered to China for processingand after that shipped back to the United States for consumption.
There is no reason why we can’t make our own apples. In reality, weather are perfect for apple growing in much of the nation.
And how difficult can it be to gather apples and squeeze the juice out of them? We ought to be able to do that here.
But during the “great times”, huge corporations found that they could make a little bit more profit by outsourcing to China, and so that is what they did.
Over the decades, huge corporations have actually come to dominate food production in America, and this has pressed little household farmers to the brink of termination…
The style of this structure advantages only the largest farmers who have the resources to produce these commodities at scale. For household farmers, the impact has actually been ravaging. The share of each dollar spent on food that winds up in the hands of farmers has fallen from 53 cents in 1946to 14 cents today, the most affordable level ever tape-recorded. Diversified family farms raising a range of crops and livestock have been replaced by big commercial operations solely growing products like corn and soy at scale.
This grimness has caused numerous family farms to surrender. Considering that 1980, America has actually lostHalf of its cattle farms, 80 percent of its dairies, and 90 percent of its hog farms. As Benson and Butz threatened, farmers were required to pick between getting huge or going out. The typical size of a farm nearly doubledfrom 650 acres in 1987 to 1,201 acres in 2012.
As long as relations with China are excellent, we will have the ability to get the apple juice, salmon and other food that we need from them.
Nevertheless, if relations with China get really sour, suddenly there will be a whole bunch of basic things that will remain in brief supply and that we will not be able to produce ourselves.
Speaking of China, there is a really major lack of shipping containers right now. And one factor that is making it even worse is that we purchase even more from China than they buy from us. So empty shipping containers are stacking up on our side of the Pacific Ocean due to the fact that there is insufficient industrial traffic returning the other method.
Sometimes empty shipping containers are shipped back to foreign ports without anything in them, however this is exceptionally wasteful…
Utilizing export information from U.S. Customs and Border Protections assembled by trader intelligence data firm Import Genius, Earther analyzed countless U.S. export records marked “empty container” shipped by Thor Joergensen A/S, a supplier based in Denmark whose biggest client is Maersk Logistics.
We found that in 2020, 668,086 empty containers were delivered to foreign ports around the world, 12 times more than in 2019. At the height of this empty container frenzy, in November 2020, 87,000 ghost containers were exported, 87 times more than at very same time in 2019.
Another scarcity that is taxing the U.S. economy is the employee shortage. Despite the fact that employment is still way, way below pre-pandemic levels, millions of Americans have decided that they just do not want to go back to work since of the generous federal government advantages that they are now generating.
As a result, we are now dealing with a severe worker shortage, and the U.S. Chamber of Commerce says that it is “worsening by the day”…
“The employee lack is real– and it’s getting worse by the day,” United States Chamber of Commerce President and CEO Suzanne Clark stated.
The majority of big corporations can easily pay more to generate brand-new employees, however many small companies that are barely scraping by can not afford to shell out greater wages. Together with other factors such as widespread shortages and higher commodity prices, this is producing a “best storm” that threatens to force a lot more small companies to shut their doors. In fact, one recent survey found that 35 percent of all small companies in America are “at danger of closing completely by the end of the summer season”…
As small businesses grumble that it has never ever been more difficult for them to work with employees according to a current NFIB survey,lots of are facing growing pressure to endure. As the American economy continues to resume, some fear it may not occur soon enough to conserve thousands of small businesses. Data from Alignable’s June Income Poll reveals that 35% of all small business owners are still at threat of closing permanently by the end of the summer season.
Amongst the 3,772 small business owners in the 10 days ended June 1, Alignable’s June Profits Pollrevealed a myriad of factors– consisting of the staying closures and restrictions, growing inflationary pressures on rates, rising gas and transportation costs and labor shortages– are producing problems that impact small companies more intensely than their business partners.
The U.S. economy has actually proven to be rather durable, however the severe imbalances that we are experiencing now threaten to cause tremendous damage in the months ahead, and they will not be fixed whenever soon. In reality, I believe that our financial difficulties will soon escalate drastically.
Before I end this post, I want to take a minute to acknowledge the passing of Robert Wenzel. He was an important voice for liberty, and I constantly enjoyed his commentary on The Economic Policy Journal.
A lot of people have actually been passing away lately. Robert was only 63, and he will be missed out on.
It has been said that life resembles a coin. You can spend it any method that you desire, however you can just invest it when.
Make certain to invest your life on something that truly matters.
About the Author: My name is Michael Snyder and my brand name new bookentitled”Lost Prophecies Of The Future Of America”is now available on Amazon.com. In addition to my brand-new book, I have written 4 others that are available on Amazon.comincluding The Beginning Of Completion, Get Prepared Now, and Living A Life That Actually Matters. (#CommissionsEarned) By acquiring the books you assist to support the work that my spouse and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the world. I have actually released countless posts on The Economic Collapse Blog Site, End Of The American Dreamand One Of The Most Crucial News, and the posts that I publish on those sites are republished on dozens of other prominent websites all over the world. I always easily and gladly allow others to republish my short articles on their own websites, but I likewise ask that they include this “About the Author” section with each post. The material contained in this article is for basic info purposes only, and readers ought to consult licensed specialists prior to making any legal, business, financial or health decisions. I encourage you to follow me on social networks on Facebook, Twitterand Parler, and any method that you can share these posts with others is an excellent assistance. During these really difficult times, individuals will require hope more than ever in the past, and it is our objective to share the gospel of Jesus Christwith as many individuals as we possibly can.