Think cheap oil is good for the economy? Not when it is caused by low demand from economies in free fall. This may come as a surprise to some Americans currently enjoying the price of much cheaper gas, but if you are a Canadian, you are suffering as your currency is rapidly losing its value. The Canadian lesson should serve as a reminder that this can and will happen even in First World countries.
How would it affect you to see your grocery bills increase by 5%, then 10%, then 30%, then even higher? Canadians are suffering this reality today. Prices of food items increased as much as 38% in 2015. (See: http://www.statcan.gc.ca/tables-tableaux/sum-som/l01/cst01/econ155b-eng.htm) However, this is using the government’s averaged figures and totally discounts areas in Canada where prices have spiked far higher. What is worse, 2016 is already on track to see even higher price spikes and Canadians literally unable to afford even the basic food staples. Soon Canada could be experiencing a true food emergency.
It isn’t all doom and gloom. For Canadians that invested their time and energy into growing their own food and livestock, the price spike is far less noticeable. In fact, they are eating as well as ever while their fellow citizens are paying ridiculous prices for things as basic as celery and cucumbers. For meat eaters, the prices are even worse if they don’t raise their own livestock. The big difference is of course the people doing fine are the preppers (farmers). Those living in urban and suburban areas that did not prep are suffering the worst and literally paying for their mistakes. The situation isn’t likely to improve anytime soon so it will be worth studying how this affects Canada as a real time case study inflation.
If you think the US Dollar will hold its value and continue to strengthen indefinitely, you are wrong. Soon the US may experience a decoupling of the US Dollar from its reserve currency status. When it does, inflation could skyrocket in the US. Let this be a lesson on why you should be ready this spring to begin your survival garden. Prepping matters and time is running out.
By Guiles Hendrik
January 13, 2016
