Goya Foods CEO Bob Unanu appeared on Fox Business earlier today in order to give a bigger picture review of the current status of food production. Unanu does a good job outlining how the interconnected systems from field to fork impact consumers.  The Goya CEO appropriately outlines what is happening and what the consequences are from Biden energy policy.  It’s a good interview.

Unanu does not push food alarmism and accurately states the U.S. food production system will ensure that food is available for U.S. consumers to purchase, albeit at higher prices.  The people most at risk from food insecurity are developing countries who rely on exports of food products generated by efficient, productive and exceptional farming operations in North America that feed the world.

For U.S. consumers it is the massive increases in energy and transportation costs that are driving up food prices, putting the issue of food insecurity into the correct context of food affordability.   WATCH:

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Consumers can offset the price impacts by shopping closer to the field, the origin of the food purchases needed.  Shopping for fresh food products at farmers markets avoids feeling the impact of shipping and transportation costs, and it helps the local economy.  If you are near areas with farm production in the United States consider the financial value of skipping the convenience of the supermarket in favor of shopping closer to the field.

In the field to fork food supply and distribution system, the closer you can get to the field for purchases the less costs you will encounter.  Obviously, for many people this may not be possible.  However, for others it might be time to evaluate the cost of convenience.

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Another item in the long list of ‘thanks Joe Biden‘ stuff.  Shortages in natural gas in windmill chasing Europe have driven up the prices significantly.  The conflict between NATO and their targeted villain in Russia is only making matters worse.

As the EU prices jump to $33/$34 per million British thermal units (BTU’s), the U.S. natural gas selling at $6 per million BTU’s is an absolute bargain.

Liquify that stuff and send it across the pond says any smart energy capitalist.

However, that comes with a problem for us.  Our supplies of natural gas are depleting quickly, our exports are now almost three times more than our production.

LONDON, April 8 (Reuters) – U.S. gas prices have climbed to their highest level in more than a decade as strong demand from overseas has emptied storage and left inventories well below average for the time of year despite a mild winter.

Front-month futures for gas delivered at Henry Hub in Louisiana have risen to $6.40 per million British thermal units, the highest in real terms since 2010. Wholesale prices in the United States are still far below those prevailing in Northeast Asia ($33 per million British thermal units) and Northwest Europe ($34).

[…] U.S. LNG exports rose 13% in the three months from November to January compared with the same period a year earlier, while gas production was up by less than 5%.

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Given the scale of the stakes for western government; and given the professed intentions of govt-aligned big tech to control the story; it is almost impossible to have an honest and open dialogue on the internet about what is happening in Ukraine.  That said, for those who have been using independent resources to form their own opinion of the events in/around Ukraine, this interview highlights some important aspects.

First, notice how Prime Minister Shmyhal is not the least bit bashful about saying cash is important because American taxpayers, the working American people, have a duty to fund the pensions and retirement accounts of the Ukrainian people, including govt politicians. [03:37] Indeed, much of the financial assistance Joe Biden has been sending to Ukraine (beyond the weapons to support the proxy war) is going toward paying the wages and salaries of corrupt Ukranian leadership.

Let that first point settle in deeply, as we consider how working Americans are being financially destroyed by U.S. monetary/fiscal policy, yet the same U.S. officials wiping out your bank account are funding the bank accounts of people in Ukraine.  Interview WATCH:

Second point.  Notice [06:02] how Prime Minister Shmyhal hedges, pauses and thinks about the response to the question of ‘what is victory’, a stalemate or Russian exit?  In the U.S. proxy war against Russia, Shmyhal is not the person who can answer that question, only the White House can.

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Robert Lighthizer was the U.S. Trade Representative (USTR) under the Trump administration.  Lighthizer was exceptionally strong in developing and structuring the America First trade policy that included the effective use of tariffs to get fair trade outcomes.

In this video Ambassador Lighthizer discusses the current trade policy of the Biden administration with former National Economic Council Chair Larry Kudlow.  The discussion centers around U.S-China trade policy, the phase-1 trade deal that was interrupted by the pandemic, and the future of the existing trade tariffs against Beijing that Biden is reportedly going to remove.  WATCH:

As noted by Lighthizer, if Biden drops the Chinese tariffs, it will only make the trade imbalance worse and push the U.S. deeper into the cycle of lost jobs and economic contraction.  He’s correct.

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It’s not exactly a confidence builder when the Director of the International Monetary Fund answers the question about forward priorities by saying, “Perhaps we need to pay attention to the law of unintended consequences.”  You had one job Kristalina, one job.

During an International Monetary Fund (IMF) spring debate and discussion segment, IMF Managing Director Kristalina Georgieva, outlined her perspective against the backdrop of massive inflation caused by the global financial institutions telling government to spend money and they will print it, during COVID.  [The video is prompted to 01:04:50] WATCH:

The discussion included EU Central Bank President Lagarde, US Fed Chair Powell, Indonesian Finance Minister Mulvani – when IMF Director Kristalina Georgieva admitted they channeled their COVID fear and emotions by unsustainably printing money without pausing to think through the consequences.

Now, the world is facing massive inflation, economic contraction, looming hunger, widespread famine and a pending global financial collapse.

Their response? “Whoops.”

Not to worry, they’ll have a little wine and chocolate and figure things out.  Swear.

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Colonel Douglas Macgregor appeared on Tucker Carlson to give a brutally honest assessment of the conflict in Ukraine. Regarding the transfer of heavy weapons and artillery, Macgregor notes something many have discussed.

The logistics of sending in those weapons from western Ukraine (Poland border) to the eastern Ukraine battle encompasses a thousand-mile trek. Russia can easily hit those convoys en route, negating the supply line. Additionally, the U.S. has sent $4.7 billion in military equipment and financial aid so far (see graphic below), and we have no idea who is in control of those weapons.  WATCH:

To give scale for the proxy war the U.S. government is waging in Ukraine, check out the extreme ratio of who in NATO is sending support, and how much.

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Ukrainian President Volodymyr Zelenskyy told the International Monetary Fund today he needs $7 billion per month in global subsidy in order to supplement the economic losses currently being incurred.

(VIA CNN) – “Ukrainian President Volodymyr Zelensky said on Thursday that Ukraine needs $7 billion per month in financial assistance to make up for the economic losses from the war. 

In a virtual address to a World Bank forum, Zelenksy also said that it would take “hundreds of billions of dollars” to rebuild his country later. 

He said every country must be prepared to break all relations with Russia and that Moscow should “immediately” be excluded from all international financial institutions including the IMF and the World Bank.” (link)

Plus, “10% for the big guy”.

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There comes a time when ideology runs headfirst into the monolith of unwavering reality.  Today, during a press briefing as a part of the IMF World Bank Meetings [TRANSCRIPT HERE], Treasury Secretary Janet Yellen was forced to admit the sanctions against Russia have hurt the EU more than Vladimir Putin and the Russian economy.

Secretary Yellen was asked about the need for increased western government bans against Russian exports.

Yellen was faced with the discomfort of admitting the global market is still open to receiving Russian products, specifically oil and gas, and that banning the EU from receiving those products only drives the EU prices higher, which has already led to unsustainable inflation.

Key Segment:

…”Europe clearly needs to reduce its dependence on Russia with respect to energy. But we need to be careful when we think about a complete European ban on say oil imports. We want to harm Russia – that would clearly raise global oil prices would have a damaging impact on Europe and other parts of the world. And counterintuitively it could actually have very little negative impact on Russia because although Russia might export less, its price for its exports would go up.”

The EU is already experiencing massive energy price increases.  Yesterday, Germany announced manufacturing price increases of more than 30% following increased energy costs exceeding 80%.  The current western government sanctions against Russia are hitting the EU economy harder than they are hurting Russia as alternative customers (India, China) for Russian energy exports are still purchasing.

In essence, the EU has partly removed themselves as a customer, but the seller, Russia, is still selling; only now they are getting higher prices because the EU and U.S. are disrupting oil and energy production in an effort to chase their climate change goals.

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Lots of people talk about an inflation driven recession.  Essentially, that’s a total economic contraction in the value of goods and services produced, sold and purchased, due to rising prices.   However, as CTH has been pointing out for more than six months, if you subtract the federal COVID infusion money from the overall economy, we have been in a contracting demand economy for almost nine months.

A negative GDP outcome is quite possible, perhaps likely, when the first quarter GDP figures are released on the last Friday of this month.  The most recent sales and economic data shows that U.S. consumers are prioritizing spending and high priced durable good sales are negative.

Now, Fannie Mae is delivering a rather stunning shift in their economic forecast.  In addition to projecting a recession for 2023, these revised home purchase figures are remarkable:

...”We have downgraded our total home sales forecast for 2022 to a decline of 7.4 percent (previously a 4.1 percent decline) followed by a decrease of 9.7 percent in 2023 (previously a 2.7 percent decline).” (link)

That is a very significant change in home sales forecast to the negative position.

We already have serious energy inflation to contend with and low wage growth.  We already know a third inflation wave on highly consumable goods is coming this summer, likely around 30% or more in food prices at the grocery store.

The professional forecasts are always tilted toward the positive for this administration, so this new statement by Fannie Mae should be considered accordingly.  Remember, Boy Scouts motto.

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Treasury Secretary Janet Yellen delivered a remarkable speech today outlining “the future of the international order,” in the aftermath of the global pandemic and the current conflict in Ukraine.  Within the speech, Yellen outlines the priorities of the United States according to the current administration and the international financial mechanisms that she controls.

The speech is quite jaw-dropping when you consider the nature of her position, and the fact that she is an unelected bureaucrat within government.

As you read the speech {Transcript Here}, keep in mind she is not the President of the United States, or the commissioner of the New World Order, yet she presents herself as authorized to control the geopolitical constructs of the Biden administration.  The hubris is astounding.

Secretary Yellen: outlines the goals and objectives of the international order, predicts a concerning global famine, warns against the cleaving of financial mechanisms for international trade as an outcome of the Ukraine conflict, threatens any nation who does not support the western political alliance and outlines the need for decarbonization of the global economy.

Yellen expresses all of these powers from the position of a U.S. Treasury Secretary – the equivalent of a government financial minister.  Speech highlights with emphasis mine:

(Transcript) – […] “Russia’s horrific conduct has violated international law, including core tenets of the UN Charter—challenging countries to demonstrate where they stand with respect to the international order that has been built since World War II.  Therefore, when I speak about a changed global outlook, I’m not just talking about growth forecasts.  I’m also referring to our conception of international cooperation going forward.  

I will focus my remarks today on the significance of international cooperation in this current environment and for our future.

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