Cattle LIQUIDATIONS in Texas; media prepping narrative to crush CRYPTO with new SEC regulations on digital securities
I have confirmed with local cattle ranchers in Texas that large-scale herd liquidations are under way right now, with some herds being reduced by 80%.
This is happening due to the extended drought affecting Texas, Oklahoma and much of the southern and western United States. The drought not only reduces grass production on the fields being grazed by cows, it also causes hay production to plummet, reducing the future food supply that could keep cows fed through the fall and winter. As a result, the vast majority of cows in Texas are being sold for slaughter.
As I point out in today’s Situation Update podcast, below, this will cause a temporary glut of beef in the food supply chain which will lower beef prices in the short term. But after that supply glut is processed and shipped, beef prices will skyrocket as cattle remain in short supply for years to come. It takes several years of good rain to replenish cattle populations and bring beef prices back into an affordable range.
The upshot is that if you plan to eat beef anytime in the next 2 years or so, you’ll want to acquire it and freeze it over the next several months. By early 2023, beef will be skyrocketing once again.
This cattle liquidation is just the latest disruption to hit the US food supply which is already reeling under global supply chain disruptions, fertilizer shortages, diesel fuel price increases and extreme drought conditions. The hits just keep coming.
Late last week, the Wall Street Journal rolled out a story describing the horrors of large-scale money losses among crypto “investors” who pursued incredibly risky strategies like mortgaging their homes and handing over the money to Celsius to earn interest on the crypto. Celsius, of course, collapsed into bankruptcy, vaporizing billions of dollars in asserts while customers saw their deposits frozen (which means confiscated by the platform).
In the story entitled, “They Thought ‘Crypto Banks’ Were Safe, and Then Came the Crash,” the WSJ painted a horrifying picture of risks associated with crypto trading and interest-bearing platforms like Celsius as well as stablecoins. From the WSJ:
Mr. Wang, now 32 years old, eventually transferred $250,000 into a stablecoin called TerraUSD. He stored it on a platform called Anchor Protocol, which was backed by venture firms and offered annual yields of nearly 20% on the coin. He also invested in an insurance fund related to the coin.
These media stories achieve two things. On the surface, they are covering the reality that many crypto platforms were nothing more than sophisticated digital Ponzi schemes that were always doomed to collapse sooner or later. (There’s much more pain yet to come in the crypto realm…) But the other aim in this coverage is to whip up fear about unregulated crypto so that new SEC regulations can criminalize non-central bank crypto operations and effectively created a CBDC monopoly run by the Fed (and enforced by the government).
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