Posted Aug 7, 2021 by Martin Armstrong
QUESTION: Why is there a shortage in everything?
Bicycles, sold out. Bicycle parts sold out. Cars delivered late, sold out.
Laptops, delivery postponed, sold out.
Graphic cards sold out.
Intel delivery problems.
Talking to carpenters – wood is getting expensive or scarce.
Hardly any mention anywhere in the media, no explanation if mentioned. Reminds me of the socialist planned economy of the past. What’s going on here?
Do you have an explanation, Martin?
Thanks for your work and persistence.
ANSWER: What I do not know is if this was intentional, or just plain stupidity by governments. However, imposing lockdowns resulted in stopping production. The World Economic Forum was bragging about how nice it was for everything to be quiet and mentions that factories were closed.
For example, the COVID-19 infections in Thai chicken processing plants have disrupted the export of chicken to China and led to drastic price increases. Housing prices are rising also in part because the replacement cost has risen. The cost of construction has risen in many areas from $250 a square foot to $500+. Then add the time it takes to construct a house. Paint is in short supply and we will see food move into an ever more short supply. You cannot lockdown society without creating massive shortages and inflation.