The Keith Snow Show
The Keith Snow Show covers current events, farming, cooking, finance, homesteading, culture, politics, and much more. My aim is to entertain and educate you on a wide range of important information you will benefit from hearing.

While many are focused on the Johnny Depp trial, Monkeypox, or other non-events much of the world, including the United States is entering into what I’ve coined “The Out Of Stockalypse!” Across most industries, American companies large and small are experiencing out of stocks at a rate never before seen in our history. I cannot understate the colossal challenges we are now facing that will be our reality for some time.

On March 28th, China locked down the biggest cities and ports in the world under the guise of a Coronavirus outbreak (more on that later) that has crippled global manufacturing and shipping resulting in a critical shortage of parts and materials.

The CCP has locked down over 26 million citizens in the most important manufacturing regions in China. Ports in Shanghai, Shenzhen, and Ningbo were shuttered. Since we’re extremely dependent on China to supply everything from prescription drugs to car parts to foodstuffs, to industrial components (pumps, switches, hoses, belts, etc) to plumbing parts, etc. this is a major problem. So many critical industries here in the US are facing serious challenges. Retailers are seeing inflation eat away at profits as consumers are struggling to pay higher prices while major retailers cannot raise prices fast enough to keep up with inflation. Couple that with out-of-stock items and the future is not bright.

Recently Amazon, Walmart, Home Depot, and Target have seen profits evaporate and sales slow, the worst is yet to come. As the supply chain empties out, the same retailers will have major holes in inventory resulting in lost sales.

I wonder if China is using this lockdown as a way to further weaken their enemy, the USA? The reason for this thinking is China does not give a rats rump about the Chinese citizens. They have shown contempt for their citizens many times throughout their history, so why are they so worried about a virus which we know has a survival rate of over 99% in most cases? Hmmm, I smell a rat! They can crash our markets and might just succeed with these supply chain bottlenecks that are causing our retail business to get clobbered.

Just imagine how many items are not going to be in stock and all the missed opportunities our retailers, service sector companies, and manufacturers will face. Scarier still are the hospitals and pharmacies that will be short critical life-saving medicines…not good!

I have read about the myriad of industries and businesses that are short critical items with lead times that are many, many months out, this is not good folks. I have been saying for years on this show that allowing offshore countries to make our critical stuff is a major mistake and a national security issue. Instead of these bumbling government officials and congress making stupid laws they should have focused on laws that prevent American companies with government contracts to offshore critical items, but they are too busy lining their pockets, lying their asses off, and generally making the people hate them.

Now many might shout we don’t want the government involved in our business and I totally understand that, but what about critical medicines and infrastructure parts? For example electrical grid components and water system items like pumps, controllers, etc. These are critical, national security infrastructure parts that should only be made here domestically, for the reasons we are seeing now….unavailable parts and parts with stupid lead times that cannot be guaranteed.

In closing, the next few months are going to be a rocky road as the supply chain empties of critical items needed by industries very important to our economy and way of life. Be sure to get the stuff you need NOW, items like shoes, car parts (belts, hoses, oil, filters, tires, etc.) foodstuffs, electronics, etc.

Resources for today’s episode:

https://www.freightwaves.com/news/what-chinas-covid-spike-massive-lockdowns-mean-to-shipping

https://nypost.com/2022/03/28/shanghai-starts-chinas-biggest-covid-19-lockdown-in-2-years/

https://www.sunsettrans.com/2022/03/16/chinese-ports-and-operations-shut-down-due-to-covid-lockdown/

https://www.armstrongeconomics.com/international-news/china/the-worlds-busiest-shipping-port-is-closed/

https://www.seatrade-maritime.com/ports-logistics/number-containerships-waiting-chinese-ports-doubles

https://www.youtube.com/watch?v=MzurR9bvzg0

 

Direct download: 471.mp3
Category:general -- posted at: 11:35pm EDT