Navigating the Economic Storm: US Agriculture in Tumult
US Agriculture Crisis Just Started And Food Prices Will Collapse
Estimated read time: 1:20
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Summary
In a gripping video from The Economic Ninja, it is revealed that the United States is facing a significant agricultural crisis, spurred by ongoing trade tariffs especially with China. This crisis is leading to a predicted collapse in food prices, which, although seemingly beneficial, hides underlying economic challenges. The video explores how geopolitical strategies and corporate decisions are affecting farmers, many of whom are on the brink due to economic pressures. The narrative draws parallels with historical events, like the Great Depression, and suggests strategic financial planning as a means to navigate the turmoil.
Highlights
The video discusses the impact of US trade tariffs on agriculture, specifically relating to China. 🇨🇳
Farmers are facing severe financial strain, potentially losing their farms. 🚜
The anticipated collapse in food prices is linked to issues reminiscent of the Great Depression. 📊
Key Takeaways
US agriculture is in a crisis due to trade tariffs, particularly impacting trade with China. 😮
Despite the expected drop in food prices, the situation could lead to broader economic repercussions. 🏦
Farmers' economic struggles are reminiscent of challenges faced during the Great Depression. 📉
Overview
In today's session by The Economic Ninja, the topic is a whirlwind of economic insights wrapped around a central thesis: the US agriculture sector is teetering due to escalating trade tensions. As tariffs tighten, farmers find themselves in dire straits, struggling to adapt to the punitive trade climate, particularly with China. However, as food prices are expected to plummet, there's a silver lining for the general consumer, albeit with caveats.
Drawing historical parallels, the narrative recalls the economic upheaval of the Great Depression, suggesting that today's financial landscape bares haunting similarities. The video paints a dramatic picture of farmers' struggles, underpinning the cyclical nature of economic booms and busts. The Economic Ninja brings forth a crucial commentary on the need for strategic, future-oriented financial planning to mitigate the adverse effects of such economic downturns.
Listeners are urged to become more financially astute, contemplating the broader implications of geopolitical and economic strategies and preparing for opportunities arising from crises. This engaging session pushes viewers not just to survive the economic downturn, but to capitalize on potential gains, pushing forward with entrepreneurial vigor.
Chapters
00:00 - 00:30: Introduction to the US Agriculture Crisis The chapter introduces the impending US agriculture crisis, highlighting a significant collapse in the food prices sector. The narrator, Economic Ninja, discusses the dual nature of this situation, suggesting that while a drop in food prices might seem beneficial, it also signals underlying problems within the US agriculture system. This collapse indicates a structural challenge that could have far-reaching implications.
00:30 - 01:00: Trump's Warning and Economic Pain This chapter discusses the economic warnings given by Trump during his 2016 presidential campaign, emphasizing the impending challenges due to tariffs. It highlights the notion of short-term economic pain for long-term gain and references Trump's prediction of significant hardship in order to achieve future benefits. The chapter underscores the importance of being prepared for economic collapse and recalls the audience's memory of Trump's warning about the difficulties that would come in handling the economy.
01:00 - 01:30: Impact on Real Estate and Stock Market The chapter titled 'Impact on Real Estate and Stock Market' discusses the intensity of an upcoming financial challenge, comparing it to a painful, unavoidable experience akin to a medical examination. It emphasizes that this challenge will have significant ramifications on real estate and the stock market, causing declines in 401ks. Despite this, the speaker expresses excitement about the situation, promising to elaborate after discussing a related story from CNBC, possibly hinting at a financial or economic collapse.
01:30 - 02:00: The Agriculture Collapse as a Good Thing The chapter discusses the notion of agriculture collapse being potentially beneficial. It reflects on historical precedents like the Great Depression, where similar crises occurred. The narrative highlights the current agricultural crisis, referencing a CNBC story about the sector being beyond just nearing crisis and already in a full-blown crisis. It also touches on farmers' desperation concerning looming trade deals in the United States.
02:00 - 03:00: Impact of Tariffs and Export Challenges The chapter discusses the impact of tariffs and export challenges, with a focus on the US-China trade relations. It highlights concerns over an impending tariff war as described by Trump's Treasury Secretary, which is seen as unsustainable. The chapter underscores the damage already inflicted on the US farming sector, describing an economic crisis that has begun as a result. It notes the time-sensitive nature of farming operations, indicating that farmers cannot afford to wait for trade negotiations to resolve the issue. Additionally, it mentions that a significant portion of US food exports, potentially up to 40%, is affected by these tariffs.
03:00 - 04:00: China's Role in the Agriculture Crisis The chapter discusses China's involvement in the agriculture crisis, particularly focusing on how American crops being exported to China is exacerbating the situation. It draws a parallel with the Great Depression, indicating that the current scenario is significantly worse due to China's stance on not purchasing food at high prices, which severely impacts American farmers during specific growing seasons.
04:00 - 06:00: Financial Impact on Farmers and Politicians' Role This chapter focuses on the financial challenges faced by farmers, emphasizing the urgency due to perishable goods needing to be processed and shipped swiftly. The transcript highlights the negative impact of global retaliation to President Trump's tariffs, specifically pointing to a significant reduction in Chinese purchases of US agricultural products. This situation has resulted in canceled export orders and layoffs, illustrating the adverse effects of political decisions on the agricultural sector.
06:00 - 08:00: Lessons from the Great Depression The chapter discusses the ongoing crisis in the US agriculture sector, highlighting a significant rise in canceled purchases of US agricultural products. The executive director of a major transport coalition and export group for farmers emphasizes the severity of the situation. He notes that the situation is more grave than people within the industry might realize, implying a need for urgent attention and action. The discussion hints at broader implications for global commodity movement and the potential for substantial company growth, but these are not elaborated upon in detail due to confidentiality.
08:00 - 10:00: Preparing for Economic Challenges In this chapter, the primary discussion revolves around the factors contributing to rising food prices. It is noted that an increase in buyers with money, exceeding the availability of food, leads to price inflation. Additionally, the influence of politicians, particularly those associated with the US industry, is critiqued, highlighting how they earn large sums of money, potentially influencing the economic landscape and contributing to the challenges faced.
10:00 - 12:00: The Current Economic Climate and Solutions The chapter discusses the impact of tariffs and taxes on the economy, particularly focusing on how they inflate prices of goods such as lettuce, soybeans, and corn. This price increase leads to higher taxes and tariffs due to their percentage-based nature, which politicians exploit to generate more revenue. The author also mentions that some people might object to this situation and express their views in public forums.
12:00 - 15:00: Concluding Thoughts and Call to Action The chapter 'Concluding Thoughts and Call to Action' focuses on inspiring individuals to elevate their mindset towards financial independence and wealth accumulation. It discusses the disparity in income between average people and politicians or wealthy individuals, encouraging the audience to think beyond current limitations. The narrative encourages starting a business, getting out of debt, and hedging against inflation. It emphasizes thinking bigger and transitioning from a survival mindset to one of thriving and prosperity.
US Agriculture Crisis Just Started And Food Prices Will Collapse Transcription
00:00 - 00:30 Check checka mic rea is this thing on? We got ourselves a heck of a show today. Hey everybody, Economic Ninja here. I hope you're doing well. Today I want to tell you about an absolute collapse coming in our food prices. And you may think that that's good, but it's also bad. But it's also good. US agriculture, the US agriculture system is in an absolute collapse right now
00:30 - 01:00 because of the tariffs and that's actually a good thing. But there's a lot more collapse happening and if you're not ready for it, you're going to be part of it. Now, the truth is Trump said in his last uh presidential campaign 2016 that there was going to be a lot of pain, a lot of things that we had to get through in the economy. Type one if you remember that. And I have to ask you that question to type one because a lot of people do not remember that phrase. There's going to be a lot of pain. We're going to go through some short-term pain for some long-term gain. All right.
01:00 - 01:30 Well, now here's the deal. There are a lot of people are like, I know what pain is. I went to the doctor once and he did that finger thing. Well, no. This is this is not that kind of pain. It's going to be double knuckle time. And the truth is, if you're not ready for it again, you're going to be part of it. It's going to flow into real estate. It's going to flow into the stock market. 401ks are going to go down and I actually couldn't be more excited. I'm going to share with you after I share a story out of CNBC. We're bringing it to you high class style how and why this agga collapse is
01:30 - 02:00 a good thing. A lot of farmers are going to lose their farms. And I know you this is like what? No, this actually happened during the Great Depression, too. All right, here we go. And it's actually a really good thing. I'm going to get some farmers that are going to be really pissed off, but you're going to realize in a second why you should listen before you type and try and run out of keyboard ink. All right, here we go. This story is out of CNBC. Agriculture isn't nearing trade war crisis. It's in full-blown crisis already. Farmers say the clock is ticking on trade deals that the US will
02:00 - 02:30 need to strike with many nations, most notably China, to avoid what Trump's Treasury Secretary has described as an unsustainable tariff war. It but in the US farming sector, the damage has already been done and the economic crisis has already begun. Now, think about this. Farmers are on a strict timeline. It's not like they can wait for these negotiations to happen. Right now, the tariffs have been slapped and China exports I want to say off the top of my head. I'm sure it's going to say it. I think it's 40% of our food that we
02:30 - 03:00 grow here in America is exported to China. That's actually a really bad thing. As a matter of fact, it's way worse than what happened during the uh Great Depression and why all the farmers lost their equipment and their farms back then. I'm about to tell you why. It's so much worse than that. All right? And the thing is is these crops grow during a specific season and China's going, "We're not buying food at that price." And the farmers are going,
03:00 - 03:30 "We're going to lose our farms. We're going to lose everything we've got because the time the clock is ticking. It's not like they can wait a month, even a month, the food will spoil. It's got to get cut, packed, shipped, and sent over to China." Okay, so now think about this, how bad this is, right? But it's actually not. It's a good thing. It says uh US agriculture exporters say the global backlash uh to President Trump's tariffs is punishing them, especially a decline in Chinese buying of US farm products leading to canceled export orders and layoffs. Peter Freriedman,
03:30 - 04:00 executive uh director of the A transport coalition a uh leading export of trade groups for farmers, tells CNBC the number of canceled purchases of US agriculture should not be described as approaching crisis. He said it's a full-blown crisis already. He said, "All right, let me explain something that even people in as a lot of people in the a industry do kind of understand and I do have a little background in a commodities and how they move around the world just a little bit, but I can't talk about that because one day my company would be massive multi-billion
04:00 - 04:30 dollar company and we'll move food all over the world." All right, so here's the thing. First off, what causes food prices to go up? that is there are more people buying the food with money than there's food to go around right so what happens is it's easy to raise the prices now one thing our politicians have done and just so you know people that work for the US a industry and stuff they're politicians what they get paid from and how they make stupid amounts of money is
04:30 - 05:00 through tariffs through taxes and they love when a products go up because if it's a set rate of tax the price for the tax goes up because it's a set percentage of tax, set percentage of tariff, but because the cost of lettuce is going up, the cost of soybeans are going up, corn's going up, right? It causes that percentage to be greater, and the politicians love it, and they're fleecing us. All right. All right. Here we And remember, too, there are a lot of good-hearted people that would probably say in the comments, "Why would the
05:00 - 05:30 politicians do this, ninja?" Because that means they've got to pay more. I don't think you understand. They're making 10 or 20 times more than you. and me, maybe not me, but you. And that's the thing. I'm trying to get your mindset up to that next level to go, I need to start a business. I need to get out of debt. I need to make get inflation hedges. And I need to start thinking bigger than these politicians and get wealthy. Because then all of a sudden you're like, I went from prepper and hiding in a cave to I can I can not
05:30 - 06:00 only manage my own finances and my life, but just absolutely blow past the average normal person. Guys, type type yes if you agree with me. See, this isn't like everybody on this channel is in this same boat, but the truth is a lot of people, 98% of the population doesn't understand how the world really works when it comes to geopolitics, inflation, finance, business, and things like that. And they need to wake up to this, okay? Because this isn't a we're
06:00 - 06:30 all in this together. The elite, and right now, our politicians are all elitist. There's no way to explain how somebody making 150 G's a year going into a a political uh runs a political campaign gets into office and then five years later they're worth like $10 million. It's because they're stealing, robbing, doing insider trading on everyone in the nation. Okay? And we need to figure this out now and get there now. This crisis with a is going to be a lot worse than you think. So
06:30 - 07:00 let's let's go a little bit uh longer here. It says, "Actcs massive financial losses are already being shared by its members as a result of the trade war based on reports it is receiving from member companies. Supply chain as drummage when fees are charged for delayed movements on goods. Meanwhile, the exporter said there are 9,000 metric tons on the water to China expected to arrive on May 13th and facing the threat of costly diversion to Chinese bonded
07:00 - 07:30 warehouses or to other countries as Chinese buyers may refuse the cargo and abandon it at port. Here's the truth. China can't feed its country. Okay? So, a lot of this is going to be sort of is made up and it's all hype. China needs to buy that food at any cost or they're going to have a revolt on their hands. But in reality, and I'm going to go down to the Great Depression, explain why a lot of farmers here are about to lose their farms. And the truth is, most farms aren't owned by the farmers.
07:30 - 08:00 They're run by farmers. They're owned by your pension funds. And I know this because I own a brokerage that actually sold farms to pension funds. So I I I do have some experience in this. All right. Oh, in the Great Depression, my greatgrandfather owned a farm. He owned a farm back in Iowa and he owned it cash. And my great-grandfather was really big on letting the land rest every seven years. Meaning, he took his farm, he divided it into seven plots because in the Bible, it talks about
08:00 - 08:30 letting the land rest. Right now, I don't know if you guys know this, uh, most humans have a boron deficiency because we're not letting the land rest and letting certain minerals like boron accumulate back into the soil. And so, we have a boron deficiency. Anyway, sorry, long thing. Don't take any financial advice from me or anything like that. Oh, wait, real quick. Uh, the sale for the uh, real estate master, all of my real estate courses put together once a month uh, group coaching call till January, all that. The the link's down below. It ends in a day. I believe it's tomorrow or the next day. All right. So what happens is he split his
08:30 - 09:00 farm up. He owned it cash and every a year a new plot of land would not be planted. And he had so much money it was crazy because everything was cash. And he warned all of his neighbors back then during the roaring 20s the banks got all of the farmers in massive amounts of debt because all of these new tractors this amazing technology came out and all sound familiar? All these businesses got super tied up in debt because they're like oh we could be more efficient. They went and got more land and they borrowed
09:00 - 09:30 money from the land and stuff and then what happened is during the depression as the depression started people started spending less. Well, they spend less. People spend less on all kinds of things during a recession or depression. And one thing is the type of food they eat and the amount of food they eat. So, they pulled back. Food prices collapsed and they couldn't sell their crops like they were. See, they were leveraged to the level, and think about this with just the average consumer. How many people in the lower and middle class,
09:30 - 10:00 lower middle class and and middle middle class sit there and they go, "Hey, I make $100,000 a year, and that means I take home, let's say, $8,000 a month, and man, their bills are right at 8,000. Man, even though maybe a little bit more, they've got their payment on the car they can't afford. They got the payment on the house they can't afford. They got all this stuff. and they're going out to dinners they can't afford and going to Disneyland on the credit card and their monthly payments are right there, right? Well, the farmers were doing the same thing and they they lost everything. My my great-grandfather said, "I used to go around and warn all
10:00 - 10:30 my friends, do not get into debt." And they would mock him, right? Like he was a small thinker. They're big thinkers. They've got big tractors, big land. They lost everything. So, what my grandfather did is his credit was perfect. he went out and he started buying up uh farms cash and um he started he started employing all of his friends and he became one of the largest farmers in the area right and it was because he was prepared for a time even though he was warning people look for the last four years I've had a channel on YouTube
10:30 - 11:00 using cardboard notes and riding on a tricycle and doing videos in my car saying look I I'm a fairly successful person and I'm trying to warn you guys everyone around the world get ready for this Because the truth is only 1% of the nation will understand. 1% of the people outside this world will understand and do something about it. Now, let me ask you this real quick. Sound off. Type ninja. If you're one of those type of people that have been sitting there in the silent warning people, but going, "Hey, you know what? I ain't blowing my
11:00 - 11:30 cash. Hey, I'm going to save up. I'm going to buy some gold, some Bitcoin. I'm going to pay off some debt. And I'm getting ready for this because I'm going to swoop in because 98 1% are elitist, 1% are ninjas, and the other 98% are just sheep. And we're trying to wake up as many sheep as there are as we can. The truth is you just can't. And so what's going to happen is we're going to see a lot of farmers uh lose their farms, right? But the truth is they're funded by your pension plans. And I've told you this before, your pensions are going to be in a lot of trouble in about a year and a half. Um, and so, uh, and
11:30 - 12:00 that's a good thing because we're all going to swoop up and buy up everything we can and good people are going to run big businesses. You're going to see this happen. But the truth is it's going to cause the price of food to collapse because if you can't sell to China, what are you going to do? You're going to dump it on the open market in America. And that's freaking awesome. Let's see food prices collapse. See, this is part of Trump's plan. And the thing is, you got to understand, this is also going to collapse real estate. It's already starting in my area. The amount of new homes that have hit the market are
12:00 - 12:30 incredible. This is awesome. And it's happening all over the country faster than you think, but you won't hear about it in the news for about 4 to 8 weeks because that's how slow the news is. That's just because of quarterly and monthly reporting on the National Association of Realtor site, Department of Agriculture site, all that stuff. And once you understand time lag, filing dates, and things like that, you can predict the future. And we've been doing that here and it's super awesome. All
12:30 - 13:00 right, let's see what else. There's got to be some other bad news in here. Oh, here we go. Um, a hay exporter in central Washington that sends large amounts of its crop output to Hong Kong and mainland China. You should just be selling it to Americans. Oh, that's right. Because we don't we don't pay as much as them. Um, was told to reroute most of its export shipped in the last two weeks to Japan, Dubai, Taiwan, and a few Chinese ports. Those changes came at a cost to the company and it told it's not sustainable. No one can
13:00 - 13:30 replace all the volume that China buys. We had to adjust our employee count down to 12 people. This accounts for 1/4 of our total employees there. The company said it had been communicating with customers and employees in hope that hasty and reckless decision-making at the top of our country will reverse. Are you freaking kidding me? Think about it. This company just had to lay off 25% of its employees because of a decision that was made a month ago. The people making
13:30 - 14:00 the wrong decisions are the current farmers of America that are so in debt, so tied up. Trust me, the CEO of that company, I bet you we find out he's making like a million plus a year. Oh yeah, I had to lay off 25% of my company. Like, well, why don't you just go down to like a normal wage, $150,000 a year, save your four employees. No, I don't want to do that. Exactly. Oh, you want to blame someone else. You see, that's the thing. The truth is in America, we have a lot of companies that
14:00 - 14:30 go out of business all the time. Big companies collapse and go out of business and lay people off because of decisions they've made. And the thing is, everybody wants a scapegoat because the CEO or the boss told them, "It's not my fault, someone else's." No, it's your fault. See, this is I run businesses. I've had businesses for a long time. some that make uh you know 50 to 100,000 a year. Some that have made millions and millions a year. And the truth is it's my fault if something happens. But see,
14:30 - 15:00 everybody wants to pin things on someone else. Type 10 if you agree with that. And the truth is once you understand that there's nothing you could do to stop it, you better start getting ready to go crush it and take advantage of it because no one's going to come and help you. Only you guys. Seriously, type 10 if you agree with that. It's freaking awesome. I'm not joking. I'm not a doom and gloomer. I'm just like, here are the facts. Crap's going bad. Let's go crush it. If you want to be a part of that, then join Ninja Nation. Those are the
15:00 - 15:30 people that are subscribed to this channel. Thank you to everybody hits the resubscribe because YouTube's decided now, you know, I got too many subs, so it's pulling a bunch doing some weird things. I don't even know if the crackling sound is going on right now. It may be, but whatever. I don't care. I'm not going to stop. I'm gonna out work, out hustle, out post, out read, out invest everybody else that's on this channel making content. This is how we go crush it. I'm so proud of all of you that keep showing
15:30 - 16:00 up, keep saving, keep investing, keep freaking crushing it. All right, the ninja is out. How's about that for an