During the 2020 presidential campaign, talk show host Sean Hannity, the investigative reporter, and author Peter Schweizer, plus countless others, warned America about Joe and Hunter Biden’s support and involvement with the Chinese Communist Party (CCP).
Following Biden’s election a year ago, the administration’s mismanagement of COVID via vaccine mandates has made it difficult to find the labor to operate shipping ports. In addition, the truck drivers are staying home in protest of the vaccine mandates, hampering the movement of the products when eventually unloaded.
In reaction to the much less deadly Omicron variant, the CCP has nevertheless decided to shut down major shipping ports, which is guaranteed to significantly disrupt the global supply of everyday products worldwide.
Zero Hedge reported on the coming Biden crisis on Thursday.
And, as we have also discussed in recent weeks, one place where this growth slowdown is emerging – besides the upcoming deterioration in US consumption where spending is now being funded to record rates by credit cards before it encounters a troubling air pocket – is China and its “covid-zero” policy in general, and its covid-locked down ports in particular.
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But what until recently was a minority view confined to our modest website, has since expanded, and as Bloomberg writes overnight, the effects of restrictions in China as the country maintains its Covid-zero policy “are starting to hit supply chains in the region.”
As a result of the slow movement of goods through some of the country’s busiest and most important ports means shippers are now diverting to Shanghai, causing the types of knock-on delays at the world’s biggest container port that led to massive congestion bottlenecks last summer that eventually translated into a record number of container ships waiting off the coast of California, a glut that hasn’t been cleared to this day.
With sailing schedules already facing delays of about a week, freight forwarders warn of the impact on already back-logged gateways in Europe and the US and is also why HSBC economists are warning that the world economy could be headed for the “mother of all” supply chain shocks if the highly infectious omicron variant which is already swamping much of the global economy spreads across Asia, especially China, at which point disruption to manufacturing will be inevitable.
“Temporary, one would hope, but hugely disruptive all the same” in the next few months, they wrote in a research note this week first noted by Bloomberg.
Well, we know some markets in the U.S. will probably see a significant increase in empty shelves popping up at the shopper’s favorite stores and markets.
If you live in a metro area, might be a good time to stock up a bit, so you are not lacking needed items in the not-so-far-away future.
Odds are a prolonged closure of these ports will further drive up U.S. inflation, adding to the compounding stockpile of Joe Biden’s failures.
Written By: Eric Thompson, host of the Eric Thompson Show.