Full screen recommended.
Epic Economist, PM 3/5/22:
"Panic Buying Frenzy Sparks A Rush To Hoard Food
And Energy Supplies As Supply Chain Collapse Begins"
"A massive panic buying frenzy continues to spread all across the world. A rush to hoard food and energy supplies has begun as prices skyrocket and reach new historic highs. The ever-growing supply chain chaos is threatening to cause more shipping disruptions in the coming days. In the U.S., Americans are in panic at the pump, with gas prices facing the highest weekly jump in over a decade. Meanwhile, in Eastern nations, people are running to buy everything they can still find in stock amid the disastrous collapse of their currency. From furniture to jewelry to other luxury goods with high resale value, a wide range of products is simply disappearing from the stores.
Some so-called experts say that American shoppers are still hoarding food and energy supplies, such as gas, propane, and other types of fuels, despite the decline in health-crisis-induced disruptions. However, what those “experts” are failing to consider is that the damage done to our supply chains won’t simply fade away as the rate of infection cases goes down. In fact, in every link of the chain, conditions are still getting worse. The American people is finally understanding the importance of stockpiling, and they’ve been buying in bulk whenever they can. And while some may call it ‘hoarding,’ consumers say they’re only prepping for the tough times ahead of us.
With memories of widespread shortages still fresh on people’s minds, they don’t want to be left in such a vulnerable position again. A recent article written by the consumer behavior reporter Lisa Bannon described that more and more U.S. consumers are stockpiling large amounts of food and household goods in anticipation of supply chain disruptions and shortages. That became particularly true now that global conflicts have started to worsen and trigger shipping interruptions, as well as the closure of some shipping routes, and soaring transportation costs brought on by the stunning rise in oil prices.
With energy prices already high, shoppers are rushing to stockpile propane, fuels, and especially gasoline. As opposed to stockpiling food, which takes time and planning, consumers have been panic-buying gas before prices go even higher and supplies get even tighter. Cars are lining up for miles amid fears that prices will shoot up even higher during the coming week. Drivers are trying to stock up on gasoline before the average price of a gallon stabilizes above $4.00. And the crisis has not only sparked chaos in America, but also in the U.K., where authorities are begging drivers to stop panic-buying fuel as gas stations run dry. In fact, experts said that gas prices are on track to hit £2.00 or even more as oil keeps rising.
Meanwhile, a panic buying frenzy is still taking place in China, where food retailers began rationing food and imposing sweeping purchasing limits as shortages aggravate across the nation. Food staples such as rice, fresh produce, meat and pork are still out of stock, and when shoppers are lucky enough to find them, prices are 20 to 30 percent higher than usual. The supply of grains is also shrinking, and with compromised grain production in both Russia and Ukraine, the entire world, including the U.S., is silently moving towards a devastating food crisis. This week, many families in Kyiv have also started to panic buy food and other staples, but most grocery stores were extremely understocked, and terrified locals snatched up whatever was left on the shelves in a desperate attempt to ensure enough to eat during such uncertain times.
Meanwhile, as the ruble continues to decay and lose value, not only investors or rich buyers are turning to luxury goods to protect their wealth. The collapse of the ruble is threatening to wipe out the savings of ordinary Russians, that’s why many of them are trying to buy products whose value will remain untouched during the conflict. Similar to gold, the prices of designer jewels and watches can hold and even increase in some cases following economic turmoil caused by global conflicts.
In essence, all of those waves of panic buying signal that the world’s population is losing confidence and trust in global leaders and governments. They’re becoming aware that no one is coming to rescue them from the mess that those in power have created and pushed us into. Supply chains have been stretched to the limit and the value of our money – it doesn’t matter if you’re in America or on the other side of the globe – will continue to collapse as our resources become more scarce and inflation eats up a larger share of our incomes with each passing month. Those are exceedingly dark times, and we should look after ourselves while we still can."
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