In the wake of the coronavirus pandemic, supply shortages have plagued the country. It’s not just toilet paper, cleaning supplies, and seeds we are talking about. It’s more than that and some believe this is another telltale sign that we are living through a systemic breakdown. In a previous article, Ripe For Chaos: How The Great Reset Will Shake Us To Our Core, it was written:
“We are literally watching a TEOTWAWKI event transpire right before our eyes. By all accounts, the pandemic was the triggering event that will set off a breakdown of epic proportions. As the COVID-19 pandemic opened our eyes to a worldwide health crisis, what could ensue will shake us to our core.
There is no mistaking the signs of economic instability. Turmoil in the stock markets, mass job loss, and cost of living have been at the forefront of our minds dealing with the aftermath of COVID, but now we are literally living in a world where there is a battle for resources from a country level to a world level. Borders are temporarily closing. Resources are getting scarce. Most people do not understand this is the fall of a civilization.
There is a reset planned and we are in a very vulnerable position. Our manufacturing is down, our resources are limited, and populations of people around the world are unable to care for their households. Mark my words, this reset will come at a great cost, and all rules that currently apply go out the window in times such as these. At the rate we are currently going, at some point, the system will seize up and eventually will just stop.
What to expect is to expect the unexpected because uncertainty is the name of the game. We don’t know how far markets will crash, what will happen with the U.S. dollar or what will happen with geopolitical tensions; and our way of life could change literally overnight. In the last 15 years, we’ve seen what systemic breakdown does in countries like Greece, Cyprus, Venezuela, and, Argentina.”
Supply Shock and Awe
In the past, we’ve turned to macro and microeconomic factors to gauge the health of the economy. But now with a health crisis, all bets are off!
One professor from Northeastern University states, “The core of the economic problem emerging from coronavirus is a “supply shock,” meaning a reduction in the economy’s capacity to make things. Companies in China that have shut down because their workers are quarantined are not making goods. That could eventually mean shortages of certain items for which there are few sources of elsewhere in the world.
Multinational companies typically operate complex supply chains, with lean inventories and essential merchandise that often arrives just in the nick of time. That means American companies that rely heavily on Chinese suppliers might begin facing shortages of key goods in the weeks ahead, said Nada Sanders, professor of supply chain management at Northeastern University.” Source
As noted in The Coronvirus Handbook:
Perhaps the most ominous of all is the concern for supply disruptions. Providers already face a global disruption in medical supplies and the more this virus continues to wage on in the United States, the more stressed the country’s supply chain will become.
The difficulty that government officials have with managing widespread pandemics is balancing the need for rapid medical response with other critical aspects of our society that could have a devastating impact on life as we know it.
Everything from healthcare and insurance to food supply chains and retirement accounts come into play when we start discussing worst-case mitigation strategies for widespread pandemic scenarios.
The problem we face is that taking action even when justified, could lead to immediate shocks to parts of our lives that we often take for granted.
The Threat to Global Supply Chains and Just In Time Delivery
As China began locking down entire regions in response to the rapid and deadly spread of this novel virus, it became apparent very quickly that the majority of the manufacturing base for the United States had essentially come to a standstill. One estimate indicated that as many as 74% of all Chinese factory workers were forced to stay home.
In addition to the low cost garments and electronics, we source a lot of raw materials and essential products from China including the base elements for the production of life-saving pharmaceutical drugs, meats like chicken and beef, and yes, even the N95 masks that are at the time of this writing selling for 25 times their normal going price.
That means further shortages of drugs, industrial chemicals, medical equipment, consumer goods like smartphones, and other appliances. Here is a list of the top shortages that could have a devastating effect on our economy.
- Food Supply Shortages – The disruption of the food chain sparked by COVID created a supply-demand imbalance that got even more out of whack when meatpacking plant employees started to catch the coronavirus. To circumvent this, grocery stores have put limits on certain products, or raised prices to ration certain items, and in some cases, there are some stores who are transferring these rising costs onto consumers as they face higher costs from their suppliers. Learn how to beat the rapid swings of food costs here. But there are some who cannot even afford groceries due to job loss. Recently, thousands in Dallas, TX lined up at a food bank to put food on the table.
- Appliance Shortages – Chances are many of you have looked into finding deep freezers to stock up on food supplies. If you did, you’re aware of the extremely long wait times. “Manufacturing factories closed down because they had COVID incidents. Distribution centers closed down because they had employees (sick), And they had to close down and clean. So it’s just been a slow restart as far as getting product out to the field,” Goss explained.” Source
- Postal Service Delays – The mail situation can tell us a lot about the state of the economy. Within 24 hours, signs of a pre-election postal slowdown have moved from the shadows to the spotlight, with evidence emerging all over the country that this isn’t a just a potential threat, but is happening before our eyes. Mailboxes are being removed, and it could allude to a main in ballot scheme. Louis DeJoy, a top Trump donor, was sworn in as postmaster general in June. Since then, social media exploded with reports from Oregon, Montana, Manhattan, and Pennsylvania that the Postal Service was unbolting and hauling away mailboxes. “Some of the boxes scheduled to be removed from downtown Billings are nearly overflowing daily,” Julie Quilliam, president of the Montana Letter Carriers Association, wrote on Facebook, according to the AP.
Planning For the Worst
The bottom line is the end is nowhere in sight and you need to prepare and plan accordingly. There are societal concerns, broken supply chains, medical and health concerns, and election issues already building up. We all need to plan for the worst while hoping for the best. Take the following steps to make sure you have the best possibility of getting through this as comfortably as possible:
1. Cut Expenses – save money by cutting your spending. For example, if you don’t watch TV that much, get rd of it. Use a radio instead. Don’t spend money frivolously right now. Make sure you have at least some cash in a safe or in your bug out bag in case you need to use it.
2. Invest in food – One thing analysts and financial pundits agree on is that, in general, food prices will continue to rise. While others are buying foods at inflated prices, you will be consuming your investment when it was purchased at a lower price. Using a combination of shelf-stable foods, you can create a well-rounded food supply to depend on when an emergency arises. Further, these foods last a lifetime and would make sound investments for future planning. Ideally, you want to store shelf-stable foods that your family normally consumes, as well as find foods that are multi-dynamic and serve many purposes. Dry goods like rice, wheat, beans, salt, honey, and dry milk will provide you with an investment that will grow in value as prices rise, and also offer you peace of mind in case the economy further degrades. This food storage calculator can show you how much food should you need to store. As well, read Emergency Items: What Will Disappear First for more ideas. You should also take the time to invest in teaching yourself to grow, store, and use your own food, taking your reliance on the grocery store off the table.
3. Figure Out Your Water Supply – You won’t make it long without water if the breakdown eventually leads to a lack of power and running water. If you have a well, figure out how to get water out of it in the event that your pump won’t have electricity. If you are on city water, get a filter, and make sure you have some source you can get to supply yourself and family with water. Storing water is a great idea, but having a renewable source is always a great idea too.
There are several telltale signs surfacing that we are living through a systemic breakdown of virtually every aspect of life as we knew it. However, there are ways to prepare and set yourself up for success as best as possible. Take steps now to protect yourself from one of the most uncertain times in human history.