Basically, a bunch of nitrogen fertilizer is made from natural gas. So, shortage of natural gas means higher heating prices and also a massive hit to US food production as fertizizer prices increase and shortages develop. Good times. 12 years of a steep decline in food commodity prices very good for the US consumer. Then we intentionally destroyed a massive amount of transportation, production and labor infrastructure for what? Geezus.
https://www.zerohedge.com/news/2021-11-05/food-crisis-about-hit-top-inflation-and-energy-crisis
Food.
In case you missed it, yesterday Bloomberg reported that the current nitrogen shortage has become so problematic that farmers aren’t able to procure the necessary fertilizer to produce their usual crop yields.
So, are we going to have to add a FOOD crisis on top of the inflation that is headed our way?
Take a look at the below chart of agricultural commodities and you tell me.
That’s a 12-year bear market ending in spectacular fashion. Food inflation was already here BEFORE this nitrogen shortage. So what happens when the next round of crops doesn’t get anywhere near what is expected?
A true inflationary storm.
It’s horrifying, but it has ALSO presented us with the opportunity to profit from once in a lifetime event: the arrival of an inflationary crisis that cannot be slowed or stopped by the Fed.