I'm surprised that you guys haven't heard about the drought in Russia. It's going to have a long-lasting effect on the world economy.
The wildfires are not their biggest problem. Their wheat crop died. Not quite all of it, but enough that Vlad Putin has forbidden sales to other countries. Winter wheat is used for miscellaneous foodstuffs, but spring wheat, the kind that failed, is the source for bread and pasta.
With the Russian grain excluded from the market, we're going to experience an inflation in all meat and cereal foodstuffs at the same time that we have a deflation in wages, bank interest on savings, and money received for sales.
That combination may be enough of a push to send the economy down over the shoulder of the "head-and-shoulders" graph.
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The wildfires are not their biggest problem. Their wheat crop died. Not quite all of it, but enough that Vlad Putin has forbidden sales to other countries. Winter wheat is used for miscellaneous foodstuffs, but spring wheat, the kind that failed, is the source for bread and pasta.
With the Russian grain excluded from the market, we're going to experience an inflation in all meat and cereal foodstuffs at the same time that we have a deflation in wages, bank interest on savings, and money received for sales.
That combination may be enough of a push to send the economy down over the shoulder of the "head-and-shoulders" graph.
Tom Trumpinski