Posted Apr 15, 2020 by Martin Armstrong
What is taking place in agriculture as a direct result of this contrived virus pandemic is beyond contemplation. The agriculture industry can provide some insight on what’s going on. Wheat has rallied to 5870 during March, just poking through the broad uptrend channel from the Great Depression. There is a major crisis unfolding, in part, because some workers needed for harvest are locked down as in Europe and cannot move from Poland to Spain. This is a serious problem. Those who advocate this lockdown like Gates and Fauci are clueless when it comes to the ripple effect through the rest of the economy.
The climate has turned bitterly cold and then there was excessive flooding in 2019. The trade war with China did not help. Farmers were already in a weak position before this concocted virus scare that has been used to justify shutting down the economy for something that is far less deadly than the annual flu. Many farmers were already in serious debt because of low profits and high taxes back in 2019 before this virus scare. This is merely pushing many into bankruptcy.
Now we have many restaurants, the entertainment industry, travel from airplane to cruise lines all shut down. The demand for produce has been declining. Prices are declining as a direct result of a drop in demand. We can see that the price of tomatoes has been falling in 2020 due to this virus shut down. Some farmers can’t make a profit and have started to just plow their crops under rather than harvesting them simply because it’s less of a loss than trying to bring the crops to market and migrant workers are unavailable. This is only setting up the crisis ahead for a rise in agricultural products.
We can see that 2020 was a Directional Change and a turning point with high volatility which has indeed come to pass. If we see a sharp low here in 2020 and a collapse in our productive capability because some farmers cannot survive, the next high in prices should come in 2023.