Who knew the next black swan would be deep fried? The biggest piece of food inflation news over the past months, coupled with what is shaping up to be another record hot summer (for the best tracking of real-time electricity consumption primarily for cooling news we recommend the following PJM RT tracker of power load), has been the collapse in the corn harvest due to the worst drought since 1988 as 56% of America is in drought conditions. Today, the US just added some burning oil to the popcorn by cutting the corn-crop forecast by 12% to 13 billion bushels on expectations of a 13.5 billion harvest. Then again, who needs corn, when you can have cake?
Bloomberg explains:
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* Equity Markets do a dead-cat bounce on leading edge of inflationary bubble – many investors dive back into equities – week after 4th of July
* Real commodity shortages begin – July
* Massive inflation plus shortages/rationing of fuel, food, etc. cause large scale unrest in first world – mid-July onwards
SOURCE: https://ncrenegade.com//editorial/for-your-pre-war-consideration-a-peek-into-the-twilight-zone/