Wednesday, October 13, 2021

Biden's canary in the coal mine





"Here are the cold hard facts. Time and money. Everything is taking more time to get, and when you do get it, it will cost more money. Soon it will be not when you get what you ordered - but if you get it."


The warning signals are going up. Red flags. What happened last weekend with Southwest Airlines may only be a hint on what is to come. For those who are focused on only Christmas this year, let your gaze go out further into the horizon. Will we have shortage of toys this Christmas? Count on it. But the real problem lies in our day to day life. The pandemic has seriously strained our supply chain. Biden's policies have only poured gas on this fire.

What we have seen so far, might only be the canary in the coal mine. Anyone who is paying attention, is starting to see red flags pop up all over the place. That is anyone except the Pollyanna types, who work in the Biden Administration. Everything is fine in their world. They are "creating" jobs left and right, and soon we will have the largest social bill the world has ever seen - signed into law. It will be sunshine, lolly-pops and unicorns for the Squad and their minions. 

Here are the cold hard facts. Time and money. Everything is taking more time to get, and when you do get it, it will cost more money. A 40 foot container, now costs about $20k to be shipped to the US from the WestPac. Soon it will be not when you get what you ordered - but if you get it. Apple just announced the production of the Apple Phone 13 will be cut by 10 million units. Why? Parts. Chips. Labor. 

Labor? What do you mean, labor? In August, a record 4.3M people quit their jobs. Gone. We can't get people to work in factories, to drive trucks, to fly airplanes, to work at Wendy's. People are staying hunkered and bunkered, with plenty of government checks coming in each month. Once the $3.5T social bill is signed, the amount of "free money", will even be larger.

One of the hidden truths about last weekend air travel mess, was the "sick out" of ATC personnel. It is one thing for Southwest Airlines to work their shrinking air crews into exhaustion, but when the ATC personnel start shutting down their work stations due to sick outs, everything comes grinding to a halt. The vaccine mandate the Biden Administration laid on government workers and contractors, might have been the biggest boner he has pulled so far.

This morning on the news, a national economist was asked about our coming economic headwinds. His response in so many words - prepare for very rough seas. We are in a major economic disaster right now, and the captain of our ship is still in nappy nap time. Bare shelves in many stores are coming. Get prepped and get ready. 

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