People who have been reading my analysis for a long time are well aware of my expectations on the eventual outcome of the US economic debacle: A stagflationary crisis followed by a massive crash similar to the Great Depression (or worse). I based this prediction on a number of circumstances, but primarily I went back to the history of currency devaluations and central bank policy. These kinds of things have happened before and they tend to follow a pattern that is visible today.
Specifically, I studies the 1971-1981 stagflation crisis for reference and I found some startling similarities. It was one of the worst economic declines in American history next to the depression, and it’s an event that almost no one talks about. A lot of people (specifically Gen Z) believe that our current era is the worst financial era of all time and that their generation has been shafted by previous generations.
This is inaccurate; the stagflation disaster of the 1970s was far worse. That said, it shows us where our country is eventually headed and it’s not looking good. What is a manageable economic crunch today has the potential to become a calamity tomorrow.
One issue that I’m fascinated by that usually isn’t mentioned in mainstream economic discussion is quality degradation – The way in which products, services, construction, manufacturing, style and availability tend to break down when inflation suddenly spikes. This process is known as “skimpflation” and it was rampant in the 1970s and early 1980s. Most Americans today think of the 70s as a happy-go-lucky era of disco, bell bottoms and psychedelics, but in reality it was economically dismal.
Examining real life images and footage from the decade compared to the 1960s, there was a stark shift in the quality of life. From the quality of cars, to the quality of clothes, to the quality of housing. Some US cities (like New York or Philadelphia) looked like warzones complete with rubble strewn slums. After sky-high inflation for several years causes a doubling and tripling of retail prices along with growing unemployment rates, the environment starts to feel real ugly.
Skimpflation And The Food Pyramid Agenda
Another aspect of life that takes a hit is the quality of diet and the ability of families to feed themselves. Most people are familiar with the concept of “shrinkflation” – The habit of companies to shrink portion sizes while keeping their packaging and prices the same in order to offset inflation in production costs without consumers noticing. However, skimpflation is another way in which companies will attempt to avoid raising prices on the shelf, and that’s by lowering the quality of ingredients, along with encouraging the public to eat less nutritious (and less expensive to produce) foods.
The 1970s was the decade that gave birth to the processed food market and the microwave cuisine, at least on a wider scale. This was the decade when American food truly took a nose dive. The ease of processed foods was offset by the poor nutritional content. They were cheaper, but the quality sucked and we are still living with the repercussions of that trend today.
There were, of course, counter-culture movements working against the adoption of processed foods, including “know your farmer” type organizations and organic movements. But as we are all well aware, the cheap processed foods eventually won. Society embraced the market because they had to. Prices were so high that it was the only way they could feed their families everyday.
Interestingly, the Food Pyramid that we were all taught about as children in public schools was introduced to the western world in 1972. The pyramid was actually first used by the Swedish government in direct response to inflation and was designed to encourage the populace to eat cheaper food-stuffs (primarily cereals, dairy products, pastas and carbs). Governments have been using subsidies to promote the consumption of low cost and low quality foods ever since.
I’m recounting these trends from the 1970s because we are seeing a very similar agenda today, though it is far more insidious in nature. Economic decline is a favorite tool for the establishment to control the behavior of populations, including dietary habits.
Dollar Losing Buying Power? Switch To Lab Grown Meat And Bugs…
It’s no coincidence, for example, that there has been a massive push by government agencies and corporations to acclimate the public to the idea of fake lab-grown meat products. For now, fake meats are more expensive than real meats so there’s no incentive for the public to consume them, but if inflation continues to drive prices higher eventually real steak will cost far more than artificial steak and people may be convinced that the fake stuff is a viable alternative.
Then there’s the notion of western consumers eating bugs for protein instead of beef or chicken or pork. Beyond the claims that this will somehow “save the climate” from global warming (which is a complete falsehood backed by zero concrete evidence), the powers-that-be also suggest that bugs will be far more affordable than hamburgers in the near future.
Bugs are traditionally a starvation food. They are only a staple in countries where famine is common or where governments aggressively restrict normal agriculture. Bug protein also has a habit of giving people parasites. The only way westerners could be convinced to eat bugs as a part of their regular diet is if inflation crushes the regular meat market.
Let The Peasants Eat Cereal…
Another form of skimpflation is the shift even further to the bottom of the food pyramid. Recently, Kellogg's CEO Gary Pilnick suggested in an interview with CNBC that Americans will eventually start ‘eating cereal for dinner’ because the cost is so much cheaper per portion. In other words, cheap processed carbs will become a mainstay of the American diet because a lot of people won’t be able to afford anything else. Pilnick brags that Kellogg's is well placed for this coming change in the food market…
The marketing for this idea is already well underway. Various companies are promoting an end to traditional healthy homemade dinner habits and a switch to unconventional and cheaper processed foods. The thrust of the Kellogg's campaign relies on poverty. Meaning, they are banking on the expectation that Americans will be poorer in the near term and that this condition will continue for years to come.
Just as we saw during the 1970s stagflation crisis, there is a rush to cut quality in all goods and services, but food is a major target. Today, it’s about convincing the market to consume more carbs and processed foods and less protein. Tomorrow, it will be about abandoning established agriculture altogether and having all our food manufactured in labs. The elites seem to be planning for a significant financial crisis beyond what we have already dealt with and this is evident in their efforts to sell the reconstruction of our dietary habits based on poverty rather than prosperity.
