Bad news, I’m afraid.

The Daily Reckoning/James Rickards/1-18-2022

“The supply chain is a complex dynamic system. When any complex system collapses, you can look for specific causes but that’s usually a waste of time. Systems collapse internally because they are too large and too interconnected and require too many energy inputs to keep going. Any specific cause is more likely to be a symptom than a true cause. It’s frustrating, but that’s the answer.”

USAGOLD note: Rickards says that supply chain problems – the empty store shelves – are here to stay. Another aspect of the glitching supply chain is that profits are likely to decline simply because businesses have less to sell. Sooner or later, that decline in sales is likely to show up in earnings and stock values. (Please scroll above to “Has the NASDAQ finally caught up with reality?)