What Are The Economic Implications: Food, Fertilizer, Commodities, Energy, Supply Chains, Inflation?
As noted by Bloomberg’s infographic, Russia and Ukraine account for almost one-quarter of global grains supply.
Both Russia and Ukraine have cut off grain exports. Geopolitical analyst Peter Zeihan notes that the world was already facing “the worst fertilizer situation in modern history in terms of supply” before Russia’s invasion of Ukraine. Zeihan says, “even if the war were to stop tomorrow, it’s already too late. It’s too late for the planting season for the Northern Hemisphere this year.”
Iowa farmer Ben Riensche told Tucker Carlson, “Soaring fertilizer prices are likely to bring spiked food prices. If you’re upset that gas is up a dollar or two a gallon, wait until your grocery bill is up $1,000 a month, and it might not just manifest itself in terms of price. It could be quantity as well. Empty-shelf syndrome may be starting.”
The globalist World Economic Forum writes, “We are currently witnessing the beginning of a global food crisis, driven by the knock-on effects of a pandemic and more recently the rise in fuel prices and the conflict in Ukraine.”
Swiss asset manager Egon von Greyerz warns that the world is facing “a global monetary and Commodity infer of nuclear proportions.” Greyerz asserts, “The world will obviously blame Putin for the catastrophe which will hit every corner of our planet. But we must remember that neither Putin nor Covid is the reason for the economic cataclysm that we are now approaching.” Indeed, war would simply be the prick that burst the global bubble, a scapegoat for financial collapse and rising inflation.
Greyerz continues, “If a miracle doesn’t stop this war very quickly (which is extremely unlikely), the world will soon be entering a hyperinflationary commodity explosion (think both energy, metals, and food) combined with a cataclysmic deflationary asset implosion (think debt, stocks, and property).”
Taken together, fertilizer shortages, food shortages, commodity shortages, energy shortages, and supply chain disruptions will increase what Willem Middelkoop calls “super inflation.”
