Tomorrow, the vaccine mandate for truckers in the US begins. The Canadian border is already affected by the Canada mandate and there is already some pain. Truckers work alone although a small number share driving with wives or other partners. Their exposure to the general public is minimal in their work life. The same mandate by the US will block most Mexican drivers from bringing fresh fruits and vegetables into the US. All three groups of drivers have a low compliance with vaccination. The result will likely contribute to the supply chain crisis, which has only worsened the past few months.
Energy policy has driven up oil, fuel, packaging and gas prices. Transportation costs have skyrocketed. Emission regulations have driven up port costs and delayed transportation; fracturing the supply chain. Vaccine mandates have hit the manufacturing and processing sectors. Legislative policy and COVID spending have artificially inflated the economy. Monetary policy has devalued the dollar and driven even higher inflation.
The mandate will affect 50% of US truckers. Mexican truckers are unknown but Canadian truckers are already demonstrating in Ottawa.
Into this hurricane of stagflation, the fed is going to raise interest rates. The stock market could lose half its inflated value. The NASDAQ is already responding to the storm clouds. Employment is going to start getting really sketchy. Congress will eventually announce their remedy, which will be more spending – and the dollar gets worse.
A market expert is predicting a bear market.
“Prominent market technician Ralph Acampora says the recent bout of market volatility has him uneasy and now he’s forecasting a deeper drop in a market that has already delivered a significant bruising to Wall Street in the first few weeks of 2022.
Acampora, who began his career on Wall Street in 1967, said that the recent pullbacks are bearish for the outlook in stocks.
“I’ve lived through too many bear markets,” he said via phone, noting that the lengthy bullish run for stocks, which has been primarily fueled by easy-money policies from the Federal Reserve to combat COVID, may be coming to a conclusion..
Markets have been unsettled since November and fears about a Federal Reserve that will be aggressive in its current battle with rising inflation — stemming from supply-chain bottlenecks and increased demand as COVID fears take a back seat to consumerism — appeared to culminate on Wednesday with the Nasdaq Composite entering correction for the first time since March and crossing below a long-term trend line, its 200-day moving average for the first time in nearly two years within days of each other.
All of this was avoidable. A year and a day ago, we were energy independent, at peace, borders were controlled, and the vaccine, over hyped as it was, was at last available and being administered. Certainly, the economy was flat but that was another decision by bureaucrats that were elected by nobody and ignoring a lot of science. I’m reading Robert F Kennedy Jr’s book, The Real Anthony Fauci. I am not sure about his conspiracy theories but the book is full of footnotes.
I am not optimistic about the future, at least the next three years.