We are potentially heading into the most painful global energy crisis in modern history. Shortages and OUTAGES of Propane could make it impossible to heat rural homes this winter! Top-off your LNG and get extra capacity or stock up on fire wood, NOW, before the outages hit.
This week, CNN asked Blackstone CEO Stephen Schwarzman about coming energy problems and he openly admitted that we are “going to end up with a real shortage of energy”…
Schwarzman warned Tuesday that high energy prices will likely set off social unrest around the world.
“We’re going to end up with a real shortage of energy. And when you have a shortage, it’s going to cost more. And it’s probably going to cost a lot more,” the private-equity billionaire told CNN International’s Richard Quest at a conference in Saudi Arabia.
Schwarzman continued “When the power goes out, people are not going to be happy. And people are really not going to be happy if it goes out for an extended period of time.”
According to Schwarzman, we will soon see “very unhappy people” all over the globe…
“You’re going to get very unhappy people around the world in the emerging markets in particular but in the developed world,” Schwarzman said at the Future Investment Initiative. “What happens then, Richard, is you’ve got real unrest. This challenges the political system and it’s all utterly unnecessary.”
Sadly, he is right that this global energy crisis did not have to happen.
If the global elite had continued to fund traditional energy projects at the pace that was needed, we could have avoided this nightmare to a very large degree. But banks and investment firms that traditionally handle the gigantic lending needed to build power plants, are now reluctant to fund anything that would emit carbon from fossil fuels. Environmentalism is now causing a shortage of electric generating capacity, which has become so insufficient, that one billionaire is saying we can now look forward to blackouts in winter time because they cannot generate enough electric anymore.
Meanwhile, prices throughout our economic system continue to rise at a very alarming pace. Just check out what has been happening to the price of turkey…
The U.S. Department of Agriculture, for example, released data recently showing the average wholesale price of Grade A frozen 8- to 16-pound turkey has spiked by 21.91% since last year. That means what cost $1.15 per pound a year ago will now ring at at $1.41. And just for context, the same would have cost 96 cents in 2019 and 84 cents in 2018.
If math isn’t your thing, that’s a 68% wholesale price increase in just two years.
Overall, we are being told that this upcoming Thanksgiving will be the most expensive Thanksgiving that any of us have ever experienced.
Matthew McClure paid 20% more this month than he did last year for the 25 pasture-raised turkeys he plans to roast at the Hive, the Bentonville, Arkansas, restaurant where he is the executive chef.
Norman Brown, director of sweet-potato sales for Wada Farms in Raleigh, North Carolina, is paying truckers nearly twice as much as usual to haul the crop to other parts of the country.
“I never seen anything like it, and I’ve been running sweet potatoes for 38 or 39 years,” Brown said. “I don’t know what the answer is, but in the end it’s all going to get passed on to the consumer.”
Unfortunately, more price hikes are on the horizon.
In fact, Kimberly-Clark Corporation is openly warning that they are going to be boosting prices even higher.
Prices of toilet paper, diapers, facial tissues and paper towels will likely rise in coming weeks as Irving, TX-based consumer giant Kimberly-Clark warned Monday that inflation and supply chain concerns aren’t “likely to be resolved quickly.”
So stock up on paper products while you still can.
ENERGY PRICES TO TRIPLE?
Most reader already know the price of gasoline has gone up every day for the past 22 days.
The main reason why prices are skyrocketing is because supplies are starting to get really tight. In fact, it is being reported that the crude oil hub in Cushing, Oklahoma could be “effectively out of crude” in just a few weeks…
In a note predicting the near-term dynamics of the oil market, JPMorgan’s commodity Natasha Kaneva writes that in a world of pervasive nat gas and coal shortages which are forcing the power sector to increasingly turn to oil (boosting demand by 750bkd during winter and drawing inventory by 2.1mmb/d in Nov and Dec), Cushing oil storage – which just dropped to 31.2mm barrels, the lowest since 2018…
… may be just weeks from being “effectively out of crude.” The bank’s conclusion: “if nothing were to change in the Cushing balance over the next two months, we might expect front WTI spreads to spike to record highs—a “super backwardation” scenario.”
Needless to say, we have never seen anything like this happen before.
In such a scenario, how high could the price of oil potentially go?
And if oil price records are being shattered in the months ahead, what will ordinary Americans have to pay when they go to fill up their vehicles?