➡The Economic Ninja explains the attacks in the Red Sea and how it might disrupt global trade more than the early part of the 2020 pandemic did. This could mean higher costs for both companies and customers. Rising prices could indicate economic problems, not growth, and might lead the Federal Reserve to change their policy on interest rates. While there are more ships available now than during the pandemic, the current challenges in shipping could worsen the already low global demand caused by the pandemic and the upcoming Chinese New Year, making the economic future uncertain in 2024.

➡ Someone is about to improve financial education online, which could help people build wealth. You can learn more about this on YouTube. A thank you is given to the followers of this financial educator, who signs off as ‘the econ’.

This morning. Hey, everybody, economic ninja here. I hope you’re doing great. We’re going to talk about the Red Sea attacks. We’re going to talk about the supply chain. The coming crisis in the supply chain story out of CNBC is very interesting because you’re going to see data get totally skewed this year. 2024 is a year of chaos over what is it? 40 countries worldwide side are electing their leaders.

That’s going to lead to chaos. There’s going to be so much confusion around the world. But right now we have something that’s really interesting. You see data that the Fed needs to use to dictate where interest rates are going to go next is going to be very skewed. People associate high prices as bad, right? They also associate high stock values as good. But both of those can actually be the opposite of the way the public thinks depending on what brought those values there.

What brought prices higher? Is it a bunch of demand because people are leading good lives, strong lives, have good jobs, good money in their bank, so they’re all buying things aggressively and that’s what’s causing the price to go up or stocks to go up, or is it because of panic? Now the story out of CNBC, again, we’re going to talk about Red Sea. Remember the world shutdown when everyone flu or some people got the flu.

The fact of the matter is, and it was real, I kicked my butt. It led to supply chain chaos, which elevated prices. Right? That’s one way prices elevate because you have fewer goods, a bunch of dollars chasing fewer goods. But then it led to all kinds of issues because money printing got involved also. Now we have an attack in the Red Sea. Check out what CNBC says. It says the Red Sea attacks already a bigger issue for the supply chain than the flu that we experienced in 2020.

Maritime advisory warns. It says here a leading ocean supply chain advisory firm is warning that the disruptions to shipping from the houthi rebel attacks in the Red Sea are already more damaging to the supply chain than the impact that was early on in the last pandemic. All right. Sea intelligence analyzed current vessel delays compared to delays over the last several years in a report for clients. The data shows that the longer transit around the Cape of good hope as ships divert from the Red Sea is already having a more significant impact on vessels available to pick up containers at ports than during the worldwide pandemic.

The supply chain measure is known in the industry as vessel capacity. Now, higher costs are going to be associated with this because manufacturers are going to have to push this on to companies that are selling these goods, and then that’s going to be pushed down to you, the consumer, which is going to tighten things even more in the economy. That’s bad. At the same time, Federal Reserve is going to seize this data and go, you know what? It’s causing more pressure on the economy.

So what do we do? Do we lower rates or do we keep them steady? Because technically that’s inflation. Prices are going up, right? It says here the vessel capacity drop is the second largest in recent years. According to Alan Murphy, who’s the CEO of Sea Intelligence, the only single event with a bigger impact than the Red Sea crisis was the ever given the giant cargo ship that got stuck in the Suez Canal for six days during March of 2021.

Billions in trade were at a standstill during that event. With that exception, this Red Sea crisis is the largest single event, even larger than the early days of the pandemic, when people were all sheltering in place. So this is really bad, okay? And it is going to throw the fed data off and is going to throw your data off your thinking cap as an investor going, okay, where is the world going? I can guarantee this.

It’s not going to a good place right now. This is bad news, which means coming in the future, there’s going to be opportunities. Okay? So unpackaging that is going to be a pretty big deal. Now, it says here a key difference between the pandemic period and now is vessel capacity that could be brought back online. Traditionally, during a period of the year that includes February’s Chinese New Year, vessel capacity declines due to a decrease in container demand.

That’s because ocean carriers bring in containers early, starting the previous October ahead of manufacturing plants closing. In honor of those holidays, Murphy said the maritime industry today has new vessels available for work, whereas during the pandemic all vessels were being used and demand was at historic highs. During the worst of the supply chain snafus, during the pandemic, there was not enough vessel space to accommodate containers, which snowballed into a massive container slowdown.

Sea intelligence, along with other maritime officials, estimate there is approximately 10% of the world’s fleet currently not in service. If additional vessels were deployed, it could correct the imbalance in vessel availability and increase certainty in vessel schedules, he says. Here to go around the Cape of Good Hope, ocean carriers need one or two additional vessels to offset the delays ocean carriers are going to need to add vessels.

He anticipates ocean carriers adding vessels into their rotation after the Chinese New Year. It’s in everybody’s interest to have a Suez solution. But you’ve got the Chinese New Year happening, so this could go on. If these attacks keep going on throughout the Chinese New Year celebration, we are going to see it get even worse in the coming weeks. Supply chain capacity has been in excess after the pandemic boom waned and the freight industry had entered a significant recession with potential for Red Sea to reverse that.

The amounts of vessels added to pick up the slack depends on. Know it’s interesting because we are also at a time where demand for shipping has been falling because the consumer is buying less. We’re seeing that it’s evident everywhere. So the point being is now as we see this, well, isn’t that interesting? Demand’s falling, freight prices are falling off a cliff. Oh wait, there’s an attack and all of a sudden what happens to shipping container costs and freight moving costs skyrocketing? Very, very interesting time where we also, if you think about it, travel and leisure.

I talked about another crash. I was coming and it’s already in one of the most discounted airlines ever, spirit. Let me know what you think about them below. I’m not a big fan, I guess, unless you’re a big fan of being crushed into a tuna can. Spirit airlines, now that they couldn’t merge a jetblue, they’re having to try and renegotiate debt. They’re in trouble. They’re headed towards bankruptcy.

And when you see it would make sense if a luxury airline company with higher standards and costs a lot more would be having issues. But when you’re seeing the discount airlines having trouble because people are just not moving around the country like they were before, they are spending less, you’re going to have issues. So we have all of these issues, even at the same time, we’re going to have higher prices because of shipping delays.

However, how much stuff is really being shipped? See, we’re going to see 2024 roll out and get worse and worse and worse for some people, not for you. If you’re getting ready for this and you’re getting excited, that’s where I’m at. Just want to bring you this news. I think it’s a big deal. Let me know down below what you think of the coming supply chain chaos. And here’s the fact of the matter.

If you’re afraid of something like, hey, I need some toilet paper, I need this, just go buy it ahead of time. I’m not saying toilet paper is all made in China, but my point being is that if you look around the house. You just go, what am I looking looking for? What do I use every day? Well, you know what? Why don’t I buy a little bit less? I mean, actually, with inflation moving still really hot, you’re just saving money by putting it into something else.

But don’t go crazy. You don’t need 1000 rolls of toilet paper, you know what I mean? But I mean a little bit of food, a little bit. Get a little bit extra. Why not? Because what happens if you’re wrong? You still use it and you locked in the price. All right, with that being said, I thank you so much for watching think to everybody that hit the subscribe button again because it’s weird.

They’re just going backwards. And I think I know why. Thank you so much for everyone that supports this channel. You guys are awesome. The economic ninja is out. Oh, real. One thing. One thing. Sorry. That other channel I told you about, the guy I talked to, the guy that’s filming. What is it called? What is it called? This will make you rich if you go search that and you go follow that guy is about to film some really cool things next week.

And I’m going to start bringing. I don’t know, I’m talking like in first person. That guy is going to bring up a level of financial education that I don’t think the Internet’s seen yet. I don’t know. I could be wrong. Go check it out. This will make you rich. Search it on YouTube. And thank you to everybody that’s following those guys. All right, with that being said, the economic ninja is out.

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