UNBELIEVABLE SURGE IN FOOD PRICES! And it's NEVER COMING DOWN

the other day when I made the video showing you guys how broke everybody is with the amount of credit card debt reaching a brand new high went up an extra hundred billion in just the span of a few months we have delinquencies on car loans and credit cards hitting levels that we haven't seen since the GFC in 2008 and one thing that we talked about in that video is how the prices of everything is probably never going to come down guys like the inflation that we saw that pushed up the expense of everything that we buy in our daily lives is likely here to stay you know because you keep hearing the fed and different economists and people who are all bullish on the economy you know celebrate that inflation is coming down you know we're getting closer and closer to the 2% that the FED wants it at and once again for anybody who doesn't know all that means is that means prices are still going to continue going up just at a 2% rate instead of a 4% rate or 5% whatever inflation was before so it doesn't mean that inflation's going away or that prices on things are going to come down it just means that the increase will now be happening at a slower Pace but here's the problem one of the main things that we all buy and we all need to survive which is food and groceries has exploded the most with this recent inflation guys and it's estimated that grocery prices have jumped 25% over the past four years which outpaces the rate of inflation at 19% over the past four years and you see those figures right there paint a truer picture of how all this works they say in the past four years the average amount of inflation the price of everything has gone up on average 20% okay but groceries are up 25% and I would imagine that's actually not true either because if you've been to the grocery store and you track your monthly spending you know that grocery prices are more than 25% % higher for most of us maybe for some people depending on where you live and the type of groceries you buy that can be true but for the vast majority it's probably more like 50% or above and I personally noticed this recently myself because my wife and I we go grocery shopping once a month it's a habit we picked up during the pandemic you know trying to stay away from all the sick people we decided hey let's just go grocery shopping once a month get all the shopping done instead of you know the once every other week that we were doing before we go to the store less now and when we go we buy a lot of stuff to last for a month right during our last trip which was just like about a week and a half ago I noticed the price of everything up guys it was our first grocery shopping trip since 20124 started and it seems like the beginning of the year is when the grocery prices go up I noticed the same exact thing happened last year where the first grocery trip that we had of the year I saw the price of everything we normally buy higher and I just noticed the same thing again a couple weeks ago now some things are only up a little bit but some items are up substantially like a dollar or more and that's when you really notice the the increase in price and that's that's fine you know $1 here $1 there but it all adds up right and then your grocery bill ends up being higher and one problem with this is it's a huge problem for the Biden Administration right now cuz everybody knows that President Biden wants to get reelected this fall but when people are seeing current economic challenges that affect their day-to-day lives you know they look to blame the current president this is really going to hurt his chances of getting reelected and this is not going to be a political video by any means we're just stating a fact here that if things persist like this it's going to make his life a whole lot harder come election time and the thing is it likely will because these prices aren't going to be going down guys in fact that's what this whole story is about here right now the cost of of buying groceries is draining the average household across the country because 2third of American voters say that inflation has hit them the hardest through higher food prices according to a November 2023 survey and that's more than 50 percentage points higher than any other category clearly people are worried about food prices the most I'd be willing to Guess that housing is in second place because that obviously has been through the roof as well but of course there's all kinds of excuses of why this is the case just like why insurance companies raise interest rates right they say well you know we had the pandemic and then we had the ongoing supply chain disruptions then we had droughts we had the Aven flu and these are just things that are outside of our control they also say that robust consumer demand has also fueled a shift to more expensive groceries and consolidation in the industry gives large chains the ability to keep prices High here's the problem guys people are waiting for prices to return to what they think is normal okay and we're not going to see that all the economists right now are saying that we're going to see prices stabilize and that's it so whatever you see the price of things right now at your local grocery store it's permanent This Is The New Normal right now and I think this is the new normal with basically everything with a few exceptions you know car prices got extremely expensive during the pandemic now those are coming way down in fact used car prices have been crashing as of recent months and I think real estate is next I think those two categories we are likely to see prices come down substantially but for most of the other things that we buy in our daily lives guys like gas and food and things like that I don't think we're going to see a big decrease in prices or none at all really they put together this chart of some of the different grocery items that are going up the most in cost and some that are going down the most in cost it it's funny because when you look at ch s like this you know the stuff that's coming down in price is stuff that's already normally cheap anyways with the exception of eggs you know if you buy nice good quality pasture raised eggs those have always been expensive but if you're just buying the cheapest eggs out there those have come down back to normal in price but they put lettuce on here tomatoes and apples and stuff like come on guys that stuff has always been cheap you know when when was the last time you paid a fortune for tomatoes or apples you know so what the Biden Administration is claiming they're doing right now is they say they're cracking down on exploitative and anti-competitive behavior in meat and poultry markets supporting state law enforcement efforts to stop practices that raise food prices and pursuing all available Avenues to lower grocery prices for families of course they have to make it sound like they're doing something right now this is where greed flation comes in because so many companies got away with raising prices on whatever it is they sell and using inflation as an excuse even if their cost didn't increase it was a great excuse to increase the price on what they were selling and collect the extra profits and we know this happened because in the same video I was referencing earlier it was determined in a recent study that all of the excess corporate profits that were seen over the past couple of years can be attributed to half of the inflation that was seen in the US the UK and Australia and I think it's no different with grocery prices guys people have been charging these exorbitant prices on all these groceries and now those prices are here to stay and they can get away with it cuz number one people can't stop eating and they they know they can get people to pay because they have been paying so why lower the prices right ese especially if we're raking in record profits what's the incentive to do that the only real legitimate excuse I see here in this whole story about grocery prices of why things are higher now than before is because of people have changed their habits people are now eating at home more and buying more groceries at home rather than eating out and I can attest to that cuz personally it's the same for us you know like we used to go out to eat probably like twice a week before the pandemic guys nothing fancy just you know small meals here and there go on little dates and go have a meal right but then once all the lockdown started nobody was going out and ever since then it never really recovered for us like we just kind of got used to eating at home and we still do now now maybe we go out to eat a couple times a month rather than a couple times a week so I can personally say that our eating habits have changed and have remained changed since everything got shut down they interviewed a family in Phoenix Arizona and they claim they're spending 70% more on groceries than they did before the pandemic okay in 2023 they said they spent about $6,000 for the year on groceries and that's up from the $3,500 they spent for the year in 2019 and they claim that part of it is also because they're eating better they're buying more high quality food now as well and that's part of the reason they're spending more but obviously you have inflation that has really crept into the price of food but they're saying Hey Now what we do is we shop around more you know we go to the farmers market we go to different places and try to get a deal because it's all too expensive and uh sometimes we just go without we just don't buy certain things anymore I do the same thing some people that are saying that the econom is great are claiming that these high grocery prices are skewing the average consumer's view on inflation because it makes it look worse than it really is because food prices are as high as they are and it's something you buy all the time versus items that are coming down in price like you know appliances and furniture and stuff like that but you don't see that because people don't buy that stuff every day now there might be some truth to that guys but the reality is everything costs more even if you're like me and somehow you were able to maintain your grocery bill being the same throughout all of this life is still more expensive for me in other places Insurance I've shared with you guys the car insurance through the roof right property taxes through the roof those are the main ones for me cuz I don't really have many bills you know I don't have any car payment I don't have debt that I'm carrying so those are the big expenses that I saw go up the most for me personally but this just further uh proves how broke everybody is because uh there's a food bank in Rhode Island and they serve about 880,000 people per month and they say that their volume is up 20% from just one year ago and they say it's absolutely because of the high cost of groceries but it's not just that throw in the higher rent throw in the higher utility bills you know next thing you know all of your money is getting eaten up just to stay alive guys but these people at the food bank are dreaming because they're saying oh we keep hoping prices are going to go down so we can see uh less people here per month but that's not going to happen they just told you it's not going to happen and we know it isn't going to happen what incentive do companies have to lower prices when they know they can get away with charging what they're charging and here's how you know things are getting bad because look at this Zillow is now getting into the roommate business probably for a couple different reasons number one people aren't buying houses and they've seen their revenue go down because because real estate agents don't want to pay for the advertising they're not making the money to pay for the advertising and with the transaction volume down they're looking for new ways to bring in money so now they're looking towards tenants and trying to hook people up with getting a roommate now on Zillow so what they're doing is they're allowing people to uh put up individual rooms for rent on Zillow now they launched a test version of this back in November of 2023 and they say there's about 10,000 single room list things currently available worldwide on Zillow at the moment they say this is going to be beneficial for uh renters and and the younger generations and they're saying they're solving a huge problem here because 60% of people say that it's harder to find a good roommate than it is a romantic partner apparently they also say this is going to help landlords and people struggling to pay for their house because they can list individual rooms for rent now in their house basically helping them house hack and help keep people in their homes now I'm not against this idea because people do need roommates and I think house hacking is probably one of the best ways for a young person today to jump on the real estate ladder if you're inclined to do it but I feel like if a company like Zillow is going to enter this space one thing that they should probably do is at least set up some kind of filter right where people can have background checks and know who they're renting to because you know say you get somebody desperate that wants to have a roommate and just anybody can call and show up and say hey I'm your roommate and you don't know if they just got released from the mental hospital yesterday and I realized that was always a risk with having a roommate if you find somebody through the newspaper or an ad or Craigslist or whatever but now that Zillow is doing it a supposedly reputable real estate company they should bring some order to it if you ask me it should make it safer to get a roommate is what I think they should do but this is going to make it easier for house hackers because now you have one more way to be able to find potential roommates to rent out different rooms in your house in I'm sure they're going to be charging a fee for this because how else would they make money on a situation like this so I can guarantee you it's going to cost you something for somebody either the tenant or the landlord is going to be paying and maybe both who knows now one thing I saw a lot of people asking in the comments of a recent video was if the stock market just hit all-time high and unemployment still at 3% or whatever how are we going to be entering a recession how does this mean the economy is bad and that's exactly the question that everybody should be asking themselves but rather than take the answer from me let's look at what a few of the experts have to say Jeremy Grantham he says that the stock market is going to have a tough year because stocks are ridiculously overpriced compared to equities in other countries he says what's going on right now now is you're witnessing a the formation of a Super Bubble and this spans all asset classes not just stocks you're talking stocks real estate any other type of valuable asset that people hold on to that's what you're seeing right now you're seeing the Super Bubble continue to get bigger but he's saying the economy is going to get weaker because these stocks are going to get hit by shrinking valuation multiples and also declines in corporate corporate profits as consumer spending and growth start to slow down David Rosenberg he says that the bull market in complacency will unravel as the recession few see and few are pres for finally comes into view he says that what we saw in 2022 with the stock market going down is just an appetizer for what's likely to come once investors start pricing a recession into the market and he says the reason that we haven't seen things cor collapse yet is because last year the economy saw consumers burning through their savings okay we saw the savings rate plunge last year and that is true and they racked up record amounts of credit card debt what did we just talk about it is now an new alltime high of $1.17 trillion okay and you have employers that have been holding off on laying people off you haven't seen the mass layoffs because so many companies were suffering a labor shortage during the pandemics they're trying to hang on to employees artificially propping up the employment sector and he says that you know you have retailers and home builders scrambling to drum up Demand with promotions and discounts the government's aggressive spending when economic growth and employment seem strong as a sign of trouble I agree if things were so good why would you have to try to lure everybody in guys this with the El same thing with the electric cars right if it was so great and everybody wanted one why did they have to give massive tax credits to incentivize people to buy it they wouldn't have to they'd be flying off the shelves on their own if they were that great same thing with the economy why would all these companies be needing to offer all these promotions in order to make sales if things were so great why are all these places starting to offer buy now pay later as an option if things were so great you need to be asking yourself these questions and you have this huge rally going on in the stock market at a time when literally records amounts of people are falling behind on their credit card bills they're falling behind on their car payments how is this a sustainable situation Gary Schilling he thinks the S&P 500 could crash by 30% to below 3500 points in the near future if things keep going like this he's also predicting a recession based on the classical signals that we always look at like the inverted yield curve for example and also because they he thinks that the fed's going to be too late to cut interest rates and by the time they do it it's already going to be too late and we're going to be in a recession which seems usually happen so I think we can all agree that the magic show that we've been witnessing in our country and our economy has basically gone on a lot longer than any of us thought it could and it's going to be interesting to see how much longer it can actually go on for probably throughout the rest of this year considering it's an electrian year right but right now I think the markets are totally high on the recent consumer sentiment surveys and all these Feelgood stories we hear about real estate and the economy and they're just eating it up guys and that's why you're seeing markets go to an all-time high recently but you got to think about it who the who are the people that invest in these markets and actually have the most wealth tied up in them it's the richest of the rich right what these people fail to see is the struggle of the every man the people that are continually putting things on their credit cards the people who are falling behind on payments for whether it be student loans or the car payments or the credit cards or or all of it right the people that have all this wealth and are responsible for these rallies are not seeing this okay and it's largely because so many people are still employed but I think everybody out there with a brain needs to be asking themselves can we continue down this current path can we continue seeing asset prices explode to new highs like we just saw in the stock market like what happened with real estate can that continue under these current economic circumstances and I'd be willing to bet that most people once they put just a little bit of thought into it would probably say no but then of course the big question is when is it going to come down by how much those are things that nobody knows guys but I think at this point it's all but inevitable we're gonna see it happen it's just a question of when if you guys enjoyed this video make sure you subscribe to the channel and if you don't want to wait for my next video to come out check out this one on the screen right over here and I will see you in the next one

Channel: Michael Bordenaro

Views: 149,667

Keywords: food prices, food inflation, groceries, economy, recession, economic collapse

Id: 5E0pu30VxtY

Length: 19min 18sec (1158 seconds)

Published: Mon Feb 12 2024