The United States and the rest of the world are hit by the economic bomb, the thunderbolt or the most dramatic disturbances in history. The coronavirus coupled with the oil price war between Russia and Saudi Arabia will change the world’s economies for years to come.
It was a punch in the gut, and at the very least, an extended period of stagflation is likely. At worst, an inflation crisis that has not been observed since the early 1970s until the late 1980s is near. History is about to repeat itself.
Investopedia describes stagflation as “an apparently contradictory condition described by slow economic growth and relatively high unemployment, or economic stagnation, which is accompanied by rising prices, that is to say ‘inflation. Stagflation can also be defined as a period of inflation combined with a decline in gross domestic product. “
The only other period in American history when stagflation and inflation soared was between 1972 and 1989. Inflation doubled in 1973 and reached double digits in 1974.
There was upward pressure on all agricultural markets during the last decade of the 1900s. And now, due to the coronavirus and the collapse of crude oil prices, we are at the dawn of markets. dynamic bulls for American agriculture as at the time, 30 to almost 50 years ago.
At the very least, the whole world will experience major economic upheavals in the years to come. According to CNBC News, “A food crisis is looming as the coronavirus forces farms to remain idle and countries are hoarding supplies.”
And here are the two main points that the article brings home. One: “Large-scale closures to contain the coronavirus epidemic have affected labor supply and disrupted supply chains in the agricultural industry.”
The second point is as follows: “For the moment, the disturbances are minimal because the food supplies have been sufficient. But soaring prices are more likely for higher-value products like meat and perishables rather than the main staple foods, which are always in sufficient supply, the Food Organization said. and agriculture. “
In the future, I strongly urge American agricultural producers to hone their marketing skills. I urge all of my readers to get their hands on solid information to help them make marketing decisions.
Marketing has always been the key to success in agriculture, and that is how it will progress. However, the big difference between now and just a few months ago is the historic economic turmoil that hit the house like a bomb.
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If anything happens between these hours, I quickly post a special email alert. There are days when I keep my subscribers informed more than twice a day.
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I do this because times have changed dramatically for American agricultural markets. Now is not the time to take your eyes off the commodity markets.
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To repeat what is said above: “A food crisis is looming as the coronavirus forces farms to remain inactive and countries accumulate reserves.” The world has changed and American agricultural producers should adapt accordingly.
Please seriously consider my special offer. Heck of a deal, in my opinion, for two reports a day, or more.
The world is certainly different today, but it is likely to return to what it was from the early 1970s to the late 1980s, when inflation was the talk of the town.
In these unprecedented times, there will be many exciting opportunities for those who are knowledgeable and daring – in particular, those in agriculture where one-off shortages for a multitude of diverse products will certainly surface sooner rather than later. Unprecedented times, indeed.