A Global Food Crisis Looms as the US Sanctions the World – Mish Talk
Global Food Crisis image from NYT Tweet
US Effectively Sanctions the World
It’s rare that I agree with anything on the New York Times.
Yet, I follow many sources I disagree with because sometimes they express a view worth considering.
This is one of those times.
“The United States thinks it has only sanctioned Russia and its banks. But the United States has sanctioned the whole world.”
Let that sink in, because it is a beautifully accurate synopsis.
Telling Russia that it cannot export wheat, nickel, aluminum, fertilizer etc., is the same as telling the rest of the world it cannot imports Russian wheat, nickel, aluminum, and fertilizer.
The amusing thing about all of this is that president Biden is doing exactly what Trump would have done.
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And it highlights the Fed’s dilemma.
What Can the Fed Do About CPI Inflation?
The answer is nothing or next to nothing. Rates hikes will not impact inelastic items.
For discussion, please see What Can the Fed Do About the Price of Food, Medicine, Gasoline, or Rent?
This post originated at MishTalk.Com.
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