Not another toilet paper shortage!
It seems like we simply can’t get a break from the hoarders who buy up essentials whenever a disaster pandemic surge hits.
In Florida, home of FreedomWire HQ, we’re used to the hoarders.
Every hurricane season, we see it happen whenever a storm is about to make landfall.
If we’re going to get hit, you see a run on water, bread, toilet paper, and plywood.
Then, when the storm passes by with barely a roof shingle out of place – these people are then stuck with these items, with some of them trying to sell their overstock afterward.
We see it every summer here in Florida, and we’ve seen it nationwide with every surge of the pandemic.
During the first wave – there was a run on cleaning products, paper towels, disinfectant, and, for some reason, toilet paper.
It was weird to walk into a store and see an entire aisle empty of products – but after a few months, things got back to normal.
There was a small spike of these goods being bought again during the second wave, but it was nowhere near as bad as the first. As a country, we finally got the idea that there will be more of these goods coming soon.
Inflation Raises Its Ugly Head
We let go of some of the anxiety and started to relax, but we may have chosen the WRONG time to do so.
Things may be about to get a lot worse and it has NOTHING to do with another surge of COVID.
Costco recently announced that it was reinstating limits on purchases of key staples like toilet paper, paper towels, and bottled water, and it was assumed that this decision is being spurred by panic buying, it’s not.
Instead, it has to do with the supply chain.
Costco CFO Richard Galanti told shareholders, “A year ago there was a shortage of merchandise. They’ve got plenty of merchandise but there’s two- or three-week delays on getting it delivered because there’s a limit on short-term changes to trucking and delivery needs of the suppliers, so it really is all over the board.”
And a lot of this congestion has to do with the 62 back-logged ships that are waiting to dock in the Southern Californian ports situated around Los Angeles.
You read that number right. There are 62 ships floating off the coast of California waiting to dock and unload, but they can’t due to the fact that there are transportation issues, some of which have to do with rising fuel costs.
If you wondering about the real cost of Biden’s presidency, you’re watching it unfold in real-time.
The port congestion and pandemic-driven labor shortages have forced retail chains like Costco to spend more on transportation and workers, which is cutting into their margins—and consumers will feel it at the check-out line.
Get Ready To Pay More At The Counter!
Galanti said his company is placing orders early in order to restock merchandise – and have already chartered three ships for 2022 that will transport their goods to their US and Canadian outlets.
The problem? The company says it’s costing them six times the amount it did just a year ago for the containers and shipping fees due to price increase on items shipped from overseas.
It’s estimated that the increase is a whopping 8% more on paper goods, 11% more on plastic and resin goods like trash bags, and anywhere from 3% to 10% for clothing.
And that’s just the beginning.
Prices also have gone up other products that have become essential to American life, like soda, coffee, beef, and aluminum foil.
Galanti estimated that inflation is costing Costco anywhere from 3.5% to 4.5% more than LAST quarter which was 2.5% to 3.5%.
That’s not good…and nothing that Joe Biden or Congress has done will change that for the better, meaning it’s only going to get worse.
Things are going to look a LOT different under Biden than they did under Trump—and he has nobody to blame but himself.
Hopefully, Liberals will learn that banning fracking and shutting down oil pipelines is NOT a good thing, especially when those things helped us avoid the problems that what we’re experiencing now.
Again, we told you so…
You chose not to listen.
“By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens.” – John Maynard Keynes