Welcome to 2023: The Year of the Thumbscrews
If you agree that it feels like the other shoe is about to drop, keep reading—because this article will explain why you need to prepare for a major disruption of life as we know it.
The world's leading analysts are forecasting an absolute disastrous 2023. Consider this eye-opening article from Yahoo Finance:
Rising global food prices brought on by Russia's invasion of Ukraine and commodity shortages triggered by climate emergencies are threatening to "destabilize" economies around the world, a United Nations (U.N.) official warned.
The number of people acutely hungry have dramatically accelerated since the beginning of the COVID-19 pandemic. While 135 million people faced acute food insecurity before the pandemic, that number has more than doubled to 276 million over the last two years.
"It's the story that keeps getting from bad to worse," U.N. World Food Programme (WFP) Chief Economist Arif Husain told Yahoo Finance Live. "When the World Food Programme is setting records, that's not a good thing for the world. And we have been doing that since at least 2021."
According to the WFP, 50 million people across 45 countries are already on the verge of famine. Another 345 million people are approaching starvation across more than 80 countries, Husain said, a 25% increase from the start of the year.
The article also examined how the ongoing Russia-Ukraine war is exacerbating the food crisis:
Ukraine and Russia collectively account for 30% of globally traded wheat, 20% of maize, and 70% of sunflower supplies, according to the WFP. A shortage of supply has pushed prices higher, even as global energy prices have added to the cost pressures with sanctions limiting Russian oil exports, a key global supplier.
A shortage of fertilizer coming from Russia, one of the most important suppliers, has only added to the problems, driving import-dependent countries with higher costs and less food to eat.
The stronger dollar, stemming from higher interest rates, has only exacerbated the situation, Husain added, creating a "triggering factor" for dozens of countries that have lost more than 25% of their currency value in less than a year.
"In 2020, we assisted about 116 million people," Husain said. "That was a record in our 60-year history. In 2021, we assisted 128 million people. Again, that was a record. This year, we are planning to assist upwards of 140 million people, which will, again, be a record."
Those records are exacerbated by the ongoing impacts from climate change. Historic heat waves in Europe and India have already depleted crop production. In 2022 alone, these crises resulted in a deficit of roughly 15-20 million metric tons of wheat and corn from the global supply, according to research by McKinsey. That number is expected to nearly double by 2023.
The global consulting firm, McKinsey & Company, says the following:
"Today's more negative outlook could ultimately result in a deficit of roughly 15 million to 20 million metric tons of wheat and corn from the world's supply of exported grain in 2022. The deficit in 2023 could reach roughly 23 million to 40 million metric tons, according to our worst-case scenario, assuming a prolonged crisis in which the recently signed agreements don't work.
The larger deficit represents a year's worth of nutritional intake for up to 250 million people… In addition to the human suffering this implies, based on the experiences of recent food crises, there are a host of other possible destabilizing consequences…
The conflict in Ukraine is shaking important pillars of the global food system in an already precarious context. Understanding what has happened, what is likely to come next, who is most affected by it, and what may be done is complex. Managing the circumstances and supporting the best possible outcomes may require decisive action and collaboration.
That's why it's time to start your survival plan (if you haven't already)—because it's the ONLY way you and your family will get through whatever happens next.
It's not difficult to become self-reliant. Yes, it's an investment. But it's far better than relying on government assistance when you-know-what hits the fan. If you don't want to be a government charity case, now is the time to stock up on the food you're going to need.
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