Quote:
Originally Posted by MeredithMan
What would drive it up 4X in 18 mos? Crazy demand? Decrease in supply? Restaurants/bars going out of business due to the 'rona? I wouldn't spend $28 for a glass of beer; heck, I cringe at spending $12-15 for a nice glass of wine at a bar or restaurant, and I like wine.
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Grain is the primary ingredient in beer. I see a rise in harvest expenses due to an increase in fuel and labor costs. Fuel and labor increase will also increase delivery cost of raw product to breweries as well as finished product to Distributor. Fuel and labor will then increase delivery cost from distributors to restaurants. Here come the kicker. Restaurants are about to experience a near 500% increase in there “front of the house labor costs”, that combined with increased fuel/energy will raise prices.
Also; there is a record $7 trillion in long term US debt due to roll over in 2021. With interest rates so low there will be very little interest in buying the debt which will in turn force the printing of more money to buy our own debt. This on top of COVID 19 stimulus will accelerate the spiral of inflation.
Now that the interest payment on our debt exceeds our GDP the politicians who have been kicking the debt can down the road will have to acknowledge the result is near. Effort will be made to collapse the currency by the elite earlier than later so blame can be cast upon the previous administration before the current administration hast to take ownership.
Back to my original request, what is your guess for a price of beer in 18 months?