For many Americans, Joe Biden’s tenure in the White House has been most notable for the crushing inflation they have endured during that time. At The Economic Collapse, Michael Snyder suggests that the wars being funded and sustained by Biden’s foreign policy agenda could drive that inflation even higher. He writes:
The only way that we can continue to have cheap food is if we have cheap energy. We use energy to grow our food, to harvest our food, to produce our food and to package our food. And transporting all of that food from the farm to the factory and then to the stores takes lots of energy. Of course it isn’t just our food supply that depends upon cheap energy. Ultimately, our entire way of life is predicated on a cheap energy paradigm. If you take cheap energy away, everything changes.
That is why this war in the Middle East could represent such a critical economic tipping point.
31 percent of the world’s oil comes from the Middle East.
If that supply is restricted or completely cut off for an extended period of time, we will be in for a world of hurt.
But don’t just take my word for it. At this point, even the World Bank is sounding the alarm…
Oil prices could be pushed into ‘uncharted waters’, which could lead to higher food prices worldwide if the violence between Israel and Hamas intensifies, the World Bank has said.
The bank’s Commodity Markets Outlook found that while the effects on oil prices should be limited if the conflict does not widen, the outlook ‘would darken quickly if the conflict were to escalate’.
In a worst case scenario, the World Bank says that the price of oil could go as high as 157 dollars a barrel…
In a ‘large disruption’ scenario – comparable to the Arab oil embargo of 1973 – the global oil supply would shrink by six million to eight million barrels per day and prices could go up by 56 per cent to 75 per cent, or $140 (£115.51) to $157 (£129.53) a barrel, according to the report.
Other experts are projecting that the price of a barrel of oil could eventually go as high as 300 dollars a barrel.
If energy prices start to scream higher as more parties join the war in the Middle East, global food prices will go far higher than they are right now.
Read more here.
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