Topic: Inflation & Supply Chain Issues-How bad is it going to get?! (Read 434 times)

Definitely an economic decision, such things are contracts, it's way more profitable to sell in bulk quantities to manufacturers rather than individuals. However, almost two years have passed and things aren't looking any better. For how longer will we face such issues? When will these issues be resolved? It looks like we have a long way to go before the majority of them are resolved.

We will have to wait and see, for a long time there have been predictions about the fall of the fiat system and since it has not happened then those which are in favor of the fiat system use this as a demonstration that it will never fall, but we know better, we know it will happen we just do not know when it will.

However the crisis caused by the pandemic is proving to be a huge problem, the government printed a lot of money, the taxes they collected went down, the economic activity went down as well, and even after all the vaccination effort the economic recovery has been way slower than anticipated, so with all of that in mind I do not see things getting any better for at least a year.

Unfortunately my nation is living one of those situations. We are a huge nation, we have a lot of population, we have a lot of land, and yet we still import even food from other nations. If it was something else I would understand, but I am talking about stuff as simple as wheat at some times, obviously wheat is not something we need to buy from other nations frequently, it rarely happens but it did happen a few times over the past years.

When a nation is mismanaged, everything gets screwed. From farming to technology to medical to law to any other thing you can consider. It is about people in power trying to abuse their power and change the nation to their favor ending up with bad results in all these things.

I somehow missed your post:


Fertilizer is made using gas, methane to provide hydrogen (lol!:) for the Haber process, so the current cost are not because of the oil price but because of natural gas shortage and the fact that Germany and Poland are the main producers in Europe and they are in a mess of their own where instead of using gas for this they need it now for electricity, winter is coming and they will burn more for heating too....


The alternative is so expensive it will never be sustainable unless we double the price of food.
Of course, we could go fully natural but it's not like all the birds in the world will poop enough guano for the agricultural needs at these levels.


Highly possible, it's an economic decision probably.
If you're a manufacturer and you lack all the materials to produce everything you can you focus on things that have a better margin of profit and those for which you deal with large producers, security of long terms contracts is the main key in this. If I would produce different things let's say aluminum I would for sure stick with producing cans for a large beverage company rather than selling aluminum sheets or tubes to random retail sellers with low volume each.

As I said before, we're in the same situation, we're waiting for months for two pieces for the forced steering system on one of our tractors, the other is already patched with parts from compatible non OEM and even some second-hand ones, hope it doesn't break till the end of November at least.

If it is said that supply chain problems in the USA are caused by technical constraints such as a shortage of truck drivers then this is not a big problem.  However, have you seen the CNBC news which is expertly explained by the leading investment managers in the country and have concluded that this is not a temporary economic crisis.  Because there are many considerations that aggravate the current financial condition.  For example, the comment consumption index and riot approval

     But the problem is that this pandemic HINDERS EVERYTHING! People can barely shop or sell. Even the farmers have problems selling their products. Even buying materials proves to be quite a hassle since everywhere you go, vaccination cards are required. You can't even travel if you are not working or an employee that is employed to the place where you are heading. My grandfather died and I couldn't even pay my respects even when his death wasn't due to covid. Things are getting more difficult as time passes by.

I'm starting to realize that a lot of things are changing after the pandemic. In the country where I live, the return to normal activities has also caused many items to become scarce and prices to increase. Although I don't see it affecting myself much, for those who are more difficult than me, they are facing huge pressures of life.

It may be for those whose basic needs are imported. If your country produces most of its basic needs locally and you focus more on basic needs that are produced locally, source your products/services from people who produce in abundance, and people who don't look for too much profit (likely the poor)  you won't be too affected by crisis.

I think it's also important to know how to buy good things at affordable rate. Lots of people don't know how, and they accept whatever price they hear/see without inquiring whether or not it's justified price.

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I see, haven't realized that it's not that simple. As I've mentioned on another post, it's a vicious cycle. It's just astonishing that I've been looking for some specific parts since the start of the pandemic and I still cannot find them. From what I've read, manufacturers are rushing into producing parts that are to be placed on bicycles, and aren't aimed to be sold in retail, which is aiming in the satisfaction of the increased demand in bicycles, rather than its parts.

Could potentially explain why I'm having trouble finding specific parts, some of which are on bicycles currently being sold, but not in any kind of store I've searched.

There's a natural gas/electricity crisis in Europe.The prices are pretty high,which will cause inflation.
I don't see any problem with natural gas and/or electricity prices in the USA.What are you complaining about?
The inflation in my country is going to be bigger than the inflation in the USA,but I'm not complaining.
We just have to adapt and survive.The prices might go down after the winter(I'm talking about Europe,not USA).
I don't have any problems with supply chains in my country.I see news about USA having a shortage of truck drivers,which causes problems with logistics and supply chains.Is this true?

I would say that inflation rates are not normalised in each country and if you see the charts then graphs are reluctantly increasing globally and this is not going to be solved soon due to reckless government policies and they are not taking proper decision implementations to cut this off and the general public is facing the issues.This pandemic many people were not able to produce many things as raw material was not available and then shortages occur like of fruits and vegetables and resulting in the surge of prices for these food items and common public have to buy them as they come under necessary items.But what most Governments is to debate over them and try to portray that they are doing right work then previous ones and everything is under control but we all know what's the true picture.

In the midst of an epidemic inflation prevailed over everything there is also a kind of inflation of expenditures as inflation, which is often caused by the state rising taxes often sharpen the problem of inflation with taxes aimed at covering the rising costs of arms management social programs the state. Keep in mind that tax rates increase production costs, so the rate level should be optimal. Inflation of every commodity also develops the whole system of controlling the market economy this automatically reduces the effectiveness of economic regulators often making their use impossible.

In my case I have not noticed a lack of products that I usually use, but I have noticed a rise in prices, mainly in electricity and gasoline, not so much in food, but little by little it is noticeable. Although I was recently promoted at work and I have had a considerable payraise, so between that, Bitcoin and other investments I think I will be able to cope well with inflation.

I would like to remind everybody that this is a direct consequence of political decisions; it is not like an earthquake or a storm, that you can do nothing to avoid it.

My country's average inflation, at least as of August within this year, is still beyond the government's target of 2%-4%, with 4% being the worst. It still stands at 4.4%, with regions outside the capital having a higher inflation than the average.

Of course, the pandemic has caused the prices of public utility vehicle fares primarily due to the social distancing measure. Petroleum prices are also rising. That's another contributing factor to the fare hike. But it is generally beyond the control of the government since the global petroleum market is beyond the country's control.

In terms of food, the prices of fish, poultry, and livestock products have also risen a lot. The African Swine Flu has contributed largely to the crippling supply chain. The shortage of pork caused the price to rise, even affecting other meat products whose demand suddenly rise as well as people are looking for alternatives.

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Sources:

1. https://www.rappler.com/business/inflation-rate-philippines-may-2021
2. https://psa.gov.ph/statistics/survey/price/summary-inflation-report-consumer-price-index-2012100-august-2021

From what I heard, there most likely won’t be shortages of gifts on Christmas from retailers which everyone is expecting due to the cargo ship container delays. People are panicking and buying gifts now because they are worried that the shelves will be empty on Christmas shopping season. Some items might be sold out like PS5 but most items will be available.

Basically retailers prepared for this in advance and they are basically paying a premium to get their container ships delivered on time. One tire company did this and they basically had to pay $25000 extra to get the tires delivered. And what they did instead is just add the cost to the consumer. So basically there will be tires but $30 surcharge for all of them.

With retail it will be the same. There will be gifts but if they had to be imported there will be a mark up most likely and people will still pay it.

     It is bad for every country right now. That, I can assure you. And yes, I am also afraid of this growing and quite difficult to solve problems with inflation that the world is facing right now. This is the reason why I along with the growing number of people are turning into this industry to somehow protect ourselves from the impending catastrophe that's about to happen because this is not something that can be questioned if, but when. One way or another the people who fail to see the potential of this industry will suffer badly for their stubborness. I just hope by then it still won't be too late for them because everyone has different capabilities in terms of finances and other stuff.

And now both Snickers and Bounty come in a 3 pack or Trio where instead of two pieces you obviously have 3 but they went down to 37.5 grams while the standard size is not 50grams, so you're buying 3 but you get two.

I seriously think we need a damn standard when it comes to this shit, bring back the normal bottles, no 470ml, 235ml, 960ml, make it mandatory for all of them to use 250,500, and 1l. That's it, f* your design, f* your whatever, everyone stick to this.
Same for food items, If I go to Carrefour or Aldi I would probably be able to get every possible package in 5 grams increments.

The only good thing that happened lately is that because of an EU directive some have started showing the price per/kg in most of the EU, and to be honest, it's damn helpful, I was amazed once to look at two nearly identical in size pudding cups that were close in price and to see that in price per kilo was actually more expensive by 40%! A few cents there, a few grams less, and there you have it!


In order to produce more, you need more machines, in order to get more machines, the manufacturer needs more materials, to get more material you need more machines to process them. this is not a thing that can be overcome in a few months.

Consider the possibility that AI is making many mistakes, nature is becoming too unstable, things are moving out of course and are not easily predictable.
I don't think sticking to the "program" will solve this. You need competent humans to take charge

Its been said the human population of the world didn't explode, until the vast number of uses of crude oil were discovered. Prior to this, the technology didn't exist to grow enough food to support a larger human population.

Fuel for transportation is one use. Fertilizer and pesticides are another. Gasoline, crop fertilizer and pesticides are all synthesized from crude oil.

Which can both simplify and complicate addressing the issues we face.

I would encourage everyone to begin searching for alternatives to anything oil based. Thanks to modern science, there are many alternatives available.

Don't expect oil prices to decline anytime soon to save us. It won't happen. In my opinion anyway.

its becoming interesting because just recently jack dorsey of twitter tweeted abiut hyperinflation is coming. with that people will really panic buy in stores.  there was already incident in the news i think it was in ohio where the people are ransacking a grocery store. and rich families are hiring security guards for themselves.

i dont know what goes on in USofA but soomeone's got to wake Biden up.