By Duncan Smith
We aren’t much in to doom-and-gloom around here because we want to present our readers with honest assessments of what we currently see happening in our country.
Historically, we haven’t talked much about the economy because under Donald Trump it was doing so well, save for 2020 when COVID-related business closures ravaged what he and Republicans with their tax reform law had built.
Well, because Joe Biden is in the White House now, we’re going to start focusing on the economy a lot more.
Because Americans will need accurate assessments and honest information in the months and years ahead.
To that end, we are seeing early warning signs of economic rough waters ahead.
One, there is an ongoing supply chain shortage that is being exacerbated by crowded ports and too few truck drivers.
Two, one of the world’s foremost investors, Warren Buffett (like him or not, he is a foremost investor), is warning that the stock market is too high.
From an intelligence report we receive:
Facing a backlog of 10-13 days at the Ports of Long Beach and Los Angeles, shipping giant Hapag-Lloyd is suspending all new bookings from Latin America coming into the United States. Notable South American exports to the U.S. include vehicles, fruits and vegetables, coffee, and sugar. Meanwhile, volume of shipping demand continues to swamp major hubs like Memphis, Chicago, and Dallas. Industry analysts expect a shortage of truck drivers to result in some disruption through the end of 2021. This is leading to continued but limited supply chain disruption, largely in the form of shipping delays, higher wait times for U.S. manufacturing, lower consumer selection and all-around higher prices.
Berkshire Hathaway held its annual shareholders meeting over the weekend. Warren Buffet continued warning about high stock prices, referring to today's markets as a 'casino,' and warning that eventually stock prices will collapse. 'The gambling impulse is very strong in people worldwide. And it creates its own reality for a while — and nobody tells you when the clock's going to strike 12 and it all turns to pumpkins and mice,' he said, citing the story of Cinderella.
Crystal balls aren’t real things and humans really can’t see into the future.
But people like Buffett and others are trained and experienced enough to analyze situations and trends.
And to them (and us), economic storm clouds are forming.
President Trump is Breaking Down the Neck of the Federal Reserve!
He wants zero rates and QE4!
You must prepare for the financial reset