By Tyler Durden,
Two weeks ago, the White House pinned the blame for rampant, not-so-transitory inflation felt by consumers across the board on the 'greed of meat conglomerates.'
An absurdity which came just four weeks after the world's largest meat producer, Brazil's JBS SA, warned that labor shortages are in fact holding back production.
Meanwhile, Kamala Harris - the woman who's just one heartbeat away from the Oval Office - has no clue what's going on.
"We have to address the fact that we have got to deal with the fact that folks are paying for gas, paying for groceries, and… need solutions to it. So let's talk about that."
Kamala’s response to questions about inflation really highlights that constant complaint from her staffers that she “refuses to wade into briefing materials.” pic.twitter.com/EE8sGMBqYG
— Matt Whitlock (@mattdizwhitlock) December 30, 2021
Yet, as adults in the room such as Michael Snyder noted last month, "the price of beef in the U.S. has risen more than 20 percent since last October," which is "deeply alarming" - but get used to it:
During the early portion of this crisis, Tyson Foods was reluctant to pass increasing costs along to consumers, but now we are being informed that they don’t intend to make the same mistake again…
Stewart Glendinning, the chief financial officer of Tyson Foods, said that they have been slow to increase their prices, in line with inflation, but are now making up for the delay.
‘We expect to take continued pricing actions to ensure that any inflationary cost increases that our business incurs are passed along,’ he said, on the company’s quarterly earnings call.
Sadly, this is just the beginning. The price of meat is only going to go higher from here, and eventually it will get to a point where meat prices become exceedingly painful.
Of course there are many that would argue that we are already there.
* * *
Which brings us to today - as the White House announced on Monday that it would peel off $1 billion for independent meat and poultry producers in order to 'boost competition in the meat-processing industry and lower prices for consumers,' according to CNN.
The plan, which will dip into the $1.9 trillion Covid-19 emergency relief bill passed last year, will allocate up to $375 million in grants for independent processing plant projects, $275 million to partner with lenders to expand 'business opportunities' and increase access to capital, $100 million for workplace training, $50 million for R&D (?), and $100 million to reduce overtime inspection costs imposed on smaller processing plants.
President Joe Biden on Monday will meet virtually with family and independent farmers and ranchers to discuss his administration's plan to create "a more competitive, fair, resilient meat and poultry sector," according to the White House. Attorney General Merrick Garland and Secretary of Agriculture Tom Vilsack will also attend the meeting.The announcement comes as food prices -- particularly for beef -- skyrocket and inflation remains a top concern of the White House. Persistent global supply chain issues and the emergence of the Omicron variant of Covid-19 threaten to prolong these rising prices. -CNN
"Over the last few decades, we've seen too many industries become dominated by a handful of large companies that control most of the business and most of the opportunities -- raising prices and decreasing options for American families, while also squeezing out small businesses and entrepreneurs," reads a statement from the White House.
The Biden admin is also launching a whistleblower 'portal' so people can report potential meat-related greed within 30 days.
US Chamber of Commerce chief policy officer, Neil Bradley, scoffed at the initiative.
"It is pretty clear that the administration is attempting to use higher prices to justify their preexisting agenda to overturn decades of bipartisan consensus around antitrust and competition policy in favor of a 'government-knows-best' regulatory approach," he said, adding "That isn't economics, it is politics and sadly, such government intervention would likely further constrain supply and push prices even higher."
Source : https://www.zerohedge.com/economics/biden-invest-1-billion-producers-after-blaming-inflation-greedy-meat-mongers