The following are 12 nightmarish economic trends that we should expect to see during the second half of 2022…
#1 Gas prices will continue to surge higher, and many will be shocked by how high they eventually go. One gas station has now reprogrammed their gas pumps “to make room for double-digit pricing”… expecting prices to increase up to $10.00 or more, the current trend suggests the possibility.
Supplies of fuel will continue to get even tighter in the months ahead. Diesel is now being rationed in certain locations.
#2 There could be extended blackouts in some parts of the country during the summer months.
Some face power blackouts this summer as roasting weather, overstretched powerplants and unreliable green energy sources combine to create a perfect storm of problems.
Some could have a hard time producing enough power this summer.
#3 Food prices will continue to rise.
Expenses for cooking oil and flour have nearly doubled in the past five months, businesses are paying more for labor and services.
#4 Supply chains are under stress, shortages will continue to intensify. The extreme baby formula shortage that we are witnessing right now is just a preview of coming attractions…
#5 The UN is telling us that we are heading into the worst global food crisis since World War II. In some parts of Africa, the number of people suffering from “extreme hunger” has already more than doubled…
More than 23 million people are experiencing extreme hunger in Ethiopia, Somalia and Kenya, according to a new report by Oxfam and Save the Children. That’s up from over 10 million last year.
The region’s worst drought in 40 years is being exacerbated by conflict and the pandemic. And the war in Ukraine has sent food prices soaring to record levels.
#6 Widespread hunger will almost certainly lead to more civil unrest. Recent events in Sri Lanka give us an indication of what may be coming…
Protesters in Sri Lanka have burned down homes belonging to 38 politicians as the crisis-hit country plunged further into chaos, with the government ordering troops to “shoot on sight.” In addition to the destroyed homes, 75 others have been damaged as angry Sri Lankans continue to defy a nationwide curfew to protest against what they say is the government’s mishandling of the country’s worst economic crisis since 1948.
#7 The Bank of Canada is likely to continue to raise interest rates.
#8 Higher interest rates will be devastating for the housing markets. Home sales have already fallen for three months in a row… as rising mortgage rates and affordability challenges pushed many would-be home buyers out of the market.
#9 Defaults are likely to continue to rise higher.
Consumers with low credit scores are falling behind on payments for car loans, personal loans and credit cards, a sign that the healthiest consumer lending environment on record is coming to an end.
The share of subprime credit cards and personal loans that are at least 60 days late is rising faster than normal, according to credit-reporting firm Equifax. In March, those delinquencies rose month over month for the eighth time in a row, nearing their prepandemic levels. Delinquencies on subprime car loans and leases hit an all-time high in February, based on Equifax’s tracking that goes back to 2007.
#10 Expect layoffs to increase and jobless claims will eventually start to spike.
#11 The S&P 500/TSE markets have already nearly fallen into bear market territory,
#12 Many are warning that a recession is either already here or will arrive soon. And people are increasingly becoming more pessimistic about the economy. The mood will dramatically shift as conditions greatly deteriorate with a tremendous amount of anger .
To these observations fro Michael Snyder I add:
Vote splitting between urban and rural councillors will continue unabated. Rural issues are not urban issues.
Even more people will be going to the missions and the Ottawa Food Bank in desperation.
The streets will be in worse shape than ever as more and more resources are redirected towards the OPS and LRT - the 2nd and 3rd sinkholes
The new mayor will lead a fractious council. If McKenney as mayor wins she will suffer from a lack of priorities and will be a lame duck from day one.
The lack of political experience will show on the new council and administration will lead them around like lambs.
Rising food and energy prices will send people into the streets in larger numbers, and angrier than usual. Expect riots, mayhem and disquiet.
Climate change will rear its ugly head again with tornados, flooding, heat waves, snow storms testing the community in ways that will make it clear what real emergencies look like.
New diseases will present themselves - Monkey Pox anyone?
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