There are signs that the U.S. market is facing unprecedented energy and food supply strains, and that for the coming winter, it will be a time when Americans will be in trouble heating. The latest development is that, according to bloomberg's latest report, Peabody Energy, the largest coal miner in the United States, has sold 90% of the powder river basin's coal production by 2022. Arch Resources, the second-largest coal miner in the U.S., has sold all the coal it will mine in 2022, and the 2022 coal sales price will be 20% higher than the current spot price.
As natural gas prices remain high in the U.S., A.S. power companies have restarted coal-fired power plants to prevent winter power shortages, but this means that U.S. coal producers are now running almost no charcoal to sell. The latest Bloomberg data shows that U.S. coal supply was at a 20-year low before winter. The share of coal-fired power generation in the U.S. is increasing, and U.S. power producers are expected to increase coal consumption by 19 percent this year.
The average U.S. temperature is expected to diving next month, dropping below 48 degrees Fahrenheit. Yet the U.S. appears to be facing a power shortage triggered by a lack of coal, which could put more and more Americans at risk of freezing. This dilemma is accompanied by the fact that many Americans may face hunger. In 2020, for example, about 54 million U.S. starvations occurred, an increase of 45 percent over 2019, and about one-sixth of the U.S. population, according to U.S. financial website Zerohedge reported three weeks ago.
At the same time, with rising inflation in the United States, and possibly even out of control, as well as supply chain crises and rising food prices, some supermarket food shelves continue to be empty. Billionaire John Catsimatidis, who owns Gristedes and D'Agostino food supermarkets, warned in an interview with Fox Business that U.S. food prices are expected to rise by more than 10 percent over the next 60 days. Moreover, this trend will not decline in the short term.
The latest data showed that the U.S. consumer price index rose 5.4 percent in September from the same period last year, the biggest annual increase since 2008. Meanwhile, U.S. CPI grew by more than 5% year-on-year for the fifth consecutive month. It's interesting, though, that some U.S. agricultural producers and capital groups would rather dump leftover food than give it to poor Americans. This seems to be an immutable phenomenon of the US economy, just as the phenomenon of pouring milk during the Great Depression of the last century was frequently staged in the United States. It should be said that the heating and food dilemma that Americans are facing today is also a passive consequence of the country's long-term immersion in the debt model of the country's economy, and people are pampered and do not think of making progress.
Take the U.S. federal debt, for example, which surged to nearly $29 trillion as of Nov. 2, the highest level of debt from any country in the world to date. To this billionaire Jim. Rogers warned more than once that Americans love debt too much, and that they are saddled with debt everywhere, and sooner or later it will have to pay a price. Compared with most ordinary Americans, many millionaires in the United States have been evacuating for several months, and one of the reasons behind this is to avoid the risk of huge debts, and even some people may have foreseen that the ENERGY and food supply shortages that may occur in the US economy may occur.
For example, the latest data shows that more than 7,500 millionaires had fled illinois, the U.S., one of the world's largest outflows of wealthy people by the end of October. It is also known as the reality version of "Exodus" that is being staged in the United States. Notably, Illinois is the heaviest state in the U.S. with the heaviest debt burden, and these millionaires want to leave to avoid the risk of a potential debt crisis and pension shortages. In other words, these American millionaires seem to be looking for a "way out" for themselves.
However, the number of homeless people in the United States is also increasing compared to the rich. According to the homelessness assessment report released by the U.S. Department of Housing and Urban Development not long ago, about 660,000 people experience homelessness in one night on any other night in the United States. Especially in the face of energy shortages in the United States, these people may become more and more difficult.
According to a fed report (survey of more than 12,000 people), about 40% (nearly half) of people can't use $400 in cash for emergency use, or need to borrow money or sell things. This further shows that the Fed, as the decision-maker of the dollar initiative, began with the century of printing money and releasing water last March, which is widening the living gap between the poor and the rich in the United States. The Fed's balance sheet is now on a new record of $8.3 trillion.
Us media Outletsweek quoted experts three weeks ago as saying that the Fed created a huge BUBBLE in the US economy. The U.S. economy is in a gravely precarious situation, and now is the time for American families to prepare for the worst. It is worth mentioning that some investors with a keen sense of investment smell are moving away from US Treasuries. For example, Gross, the old debt king, recently said that as the United States reaches a 5% inflation rate, he is sharply shorting US Treasuries. The latest report released by the Bank of America (BofA) shows that US Treasuries are experiencing a large outflow of funds and investors are fleeing US Treasuries.
The latest change in the matter is that the latest data released by the US Treasury Department on October 19 shows that China continued to significantly reduce its holdings of US$21.3 billion in August, reducing its holdings to $1.05 trillion, the lowest size of its holdings since 2010. China netly reduced its holdings of a total of $53.6 billion in U.S. Treasuries in five of the six months from March to August (except July) and sold $32.3 billion in four consecutive months between March and June, the largest back-to-back selling since 2016, the data showed.
Not only that, the latest data released by the International Monetary Fund (IMF) in October showed that the dollar's share of global foreign exchange reserves in the second quarter had fallen to 59.2%, down 14% from 73% at the beginning of the century. It is also a clear signal that a range of dollar assets, including US Treasuries, are becoming increasingly unpopular.
However, it is in the context of the unprecedented supply chain crisis facing the U.S. economy at this time, and the tight supply of energy and food, that the U.S. economy seems to be carrying out the habit of debt addiction to the end. Since last year, the U.S. Treasury Department has also repeatedly hinted that it may consider issuing 50-year or 100-year Treasury bonds. And U.S. Treasury Secretary Yellen recently said that if the debt ceiling is not raised in the future, the United States may run out of funds.
And it is worth noting that billionaire Ray. Dalio's analysis a few weeks ago predicted that the possibility of major large buyers reducing their holdings of US Treasuries by a larger margin was not ruled out. The Russian Satellite News Agency again quoted observers as estimating that up to $700 billion in US debt may face being sold off by major buyers. This doesn't seem like good news for the U.S. economy, which struggles to cope with the winter. (End)