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It's Not Gold You Should Be Watching. It's Cardboard. - Video học tiếng Anh
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It's Not Gold You Should Be Watching. It's Cardboard.
It's Not Gold You Should Be Watching. It's Cardboard.
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0:00
Everyone’s watching gold prices for signs of a crash. They’re watching the wrong thing.
0:05
The real warning sign is sitting on your doorstep or in your kitchen.
0:09
In 2025, America’s biggest box manufacturers permanently shut
0:13
down 10% of U.S. cardboard production. It’s the biggest collapse since 2008. And when
0:19
companies stop making boxes, it means one thing… Products aren’t moving and global demand is dying.
0:26
And that economic shock is about to hit your bank account.
0:30
A select group of companies sit
0:31
at the center of America’s packaging industry, Smurfit WestRock, and Packaging Corporation of
0:38
America. The Big Three. Together, they form the backbone of the U.S. cardboard supply
0:42
chain. Nearly every physical product in America passes through their brown boxes at some point.
0:48
In 2025, those companies and their rivals permanently shut down plants,
0:52
eliminating roughly 3.9 million tons of production capacity. That’s around a tenth
0:58
of everything North America can make. That single year of shutdowns was nearly
1:02
twice the scale of the cuts that followed the 2008 financial crisis. And 2008 was the worst
1:08
economic collapse since the Great Depression. That’s not the actions of a healthy market.
1:12
International Paper alone shut down two massive mills in Georgia capable of producing nearly a
1:18
million tons of cardboard every year. Around 1,100 workers lost their jobs. Then came the
1:24
closure of the Red River mill in Louisiana, along with additional plants scattered across
1:28
multiple states. The company has earmarked at least 7 more closures, with more than 700
1:33
additional layoffs lined up for 2026. This wasn’t isolated to one company.
1:38
Smurfit WestRock cut more than half a million tons of capacity of its own, shutting down a
1:43
mill in St. Paul, Minnesota and ending board production in Texas. Those closures wiped out
1:48
roughly 650 American jobs. Even the Packaging Corporation of America began trimming plants.
1:54
Industry-wide job losses had climbed past 4,500 across North America and Europe since
1:59
late 2024. To the equivalent of an entire mid-sized factory town erased in about a year.
2:06
From just one sector. It was a cardboard bloodbath.
2:10
Sure, closures and restructuring happen in business. It’s normal practice. But this feels
2:15
different. A whole industry is walking away from plants that took decades and billions of dollars
2:20
to build, for one reason. The orders are not there.
2:24
This wasn’t some one-year anomaly. Since 2023, the cardboard industry has
2:29
eliminated roughly 5.4 million tons of production capacity, one of the largest contractions analysts
2:36
say the sector has ever recorded. 3 million more tons is expected to disappear by 2027 through
2:42
permanent closures and mill conversions. To understand what 3.9 million tons lost
2:47
in a single year actually means, imagine 4 of the largest box mills in America demolished
2:53
and never coming back. Because mills don’t shut down like this in a normal slowdown.
2:58
And it will have massive implications. The physical frame of world trade is
3:03
being taken apart in real time, mill by mill, town by town. But to understand why a dark mill
3:09
in rural Louisiana should matter to you at all, you have to stop looking at the factory and start
3:14
looking at the box on your porch.
3:16
Industry estimates say roughly 75 to 80% of all consumer goods spend part of their life inside a
3:22
corrugated box. Some sources put it even higher. Which means cardboard isn’t just “packaging.”
3:28
It’s the container that carries almost the entire physical economy.
3:32
The television in your living room arrived in one. So did the pallet of groceries,
3:36
the parts inside your car, and the package left on your doorstep. Cut off that supply
3:40
and you begin squeezing the economy. The hidden cost is buried in your weekly
3:44
shopping. Packaging eats a real slice of the price of food and drinks, somewhere around 8 to
3:49
15% depending on the product. It often works out to roughly a tenth of what you pay at the shelf.
3:55
On a $5 box of cereal, somewhere near 20 to 40 cents of that is the printed paperboard
4:00
and inner liner. So you're not really buying $5 worth of cereal. You're buying roughly $4.60
4:07
plus a brown board you'll throw away within the week. That happens every single day of your life,
4:12
it just never shows up on a receipt. Every item you buy carries a packaging
4:16
cost folded into the price. When cardboard gets scarce, that cost climbs, and nobody up the chain
4:22
absorbs it for you. The maker passes it down, the store passes it on, and it lands on you. Not all
4:28
at once. Just a few cents here and there. Until one day everything feels slightly more expensive,
4:33
and nobody can quite explain why. You never connect it back to a
4:37
paper mill shutting down in Georgia. That’s exactly what makes cardboard
4:40
such a powerful economic signal. It’s exactly what happened through
4:44
2025. Demand collapsed, yet cardboard prices stayed near multi year highs. Normally,
4:50
when demand falls that hard, the price falls with it. Here the opposite happened,
4:54
because producers were closing mills fast enough to keep supply tight even as the orders dried up.
5:00
The box on your porch is not trash waiting for the truck. It's a time machine that lets
5:05
you see the future, and it does that because of one stubborn fact about how products get made.
5:11
Box orders are a known
5:13
early warning signal; they run ahead of factory output by roughly 3 to 6 months.
5:18
A product doesn’t move instantly. It starts on a factory floor, gets packed into boxes, loaded onto
5:24
trucks, and sent to regional warehouses. From there it filters down to smaller distribution
5:29
centers, then finally to store shelves. From the first box order to the moment it reaches your
5:34
home, the system runs on a 90 to 180 day schedule. The boxes always come first.
5:40
Right now, U.S. box shipments in the third quarter of 2025 fell to their lowest level
5:45
since 2015. In other words, a decade of growth effectively disappeared in
5:50
a single year. Total cardboard production was down about 4% across 2025 versus 2024,
5:57
and the decline didn’t stop there. It continued into 2026, with the first quarter showing one of
6:02
the steepest drops in years. Across the major makers, daily shipments fell all year long.
6:08
The orders did not slow. They stopped.
6:11
Roughly half of surveyed box makers said their orders had gotten worse. The industry is openly
6:16
preparing for more pain through the rest of 2026. This is not one bad quarter that a strong holiday
6:21
season fixes. It's a long slide, and it has now lasted long enough to kill plants for good.
6:28
An early warning signal that normally runs 6 months ahead of the economy is
6:32
sitting at a decade low and still pointing down. At that point, the real question is no
6:37
longer whether the goods economy is slowing. It's how long it has already been slowing
6:42
while almost no one noticed.
6:45
This is where something called the bullwhip effect comes in. It’s where a small change in
6:49
what shoppers do gets blown up into a huge swing by the time it reaches the factory.
6:53
Imagine an actual bullwhip. A small flick of the wrist barely looks like anything at the
6:58
handle. But at the far end, it cracks with force. That’s what demand does in a modern supply chain.
7:05
No one is immune to it. Walmart and Target came out
7:08
of the pandemic on the wrong side of that whip. They were buried in excess inventory. Warehouses
7:13
were full because they had over-ordered when demand briefly surged. So they did
7:17
what every retailer does in that situation: they slammed the brakes on new orders and spent months
7:23
selling down what they already had instead of replenishing it. When the stock finally cleared,
7:27
the warehouses didn’t refill at the same pace That was the part nobody was ready for.
7:33
In August 2025, Walmart's CEO Doug McMillon talked about the cost of restocking. As they refilled
7:39
inventory, he said, those costs kept climbing week after week, and he expected the pressure to last
7:44
into late 2025. When even the largest retailer on earth is refilling its shelves this carefully,
7:49
the caution doesn't stay at Walmart. It travels up the chain to everyone who supplies it.
7:54
A destocking cycle is normal, and it fixes itself; everyone just waits it out.
7:59
What's happening now is a freeze that has lasted longer than expected. The stores
8:03
cut orders hard to clear the glut, which forced box suppliers to idle lines, which forced mills
8:09
to announce closures they can never undo. Each link overreacted harder than the one
8:14
below it, the bullwhip cracking down its full length. Because once a plant closes,
8:19
it doesn’t behave like a pause button. You can’t just switch a mill back on when demand returns.
8:24
The machines get dismantled and sold off. Workers leave and don’t come back. And even if demand
8:30
eventually recovers, the capacity usually doesn’t. So the system doesn’t snap back to where it was.
8:35
It resets lower. That’s what makes these cuts so dangerous. The
8:39
damage doesn’t end when the slowdown ends. It lingers.
8:43
It’s not just American loading docks that’s seeing it. It is choking the biggest
8:47
factory engine on the planet.
8:49
China’s imports of corrugated paper fell sharply in 2025, down 17.87% year on year between January
8:57
and November, landing at just over 2 million tons. This was not a one year blip, the slide
9:02
had already started the year before. China imports paper to make cardboard
9:07
boxes. Those boxes move the goods that eventually end up on Western shelves. So when those paper
9:12
imports fall, it means less packaging capacity and production flowing through factories. Eventually,
9:18
less inventory reaches stores abroad. This is what makes it relevant to you.
9:23
It isn't some far-off story about another country's economy.
9:26
A 17.87% drop means fewer containers crossing the ocean, which means thinner stock and firmer prices
9:34
on the staples you grab without thinking. But it’s not one way traffic.
9:38
Roughly 10 to 15% of U.S. cardboard capacity exists to serve exports, the boxes that carry
9:44
American goods out to the world, and that side has been clearly under pressure. Linerboard
9:49
made for export slumped throughout 2025. Trade is slowing in both directions at once,
9:55
and cardboard boxes are one of the few places that double squeeze shows up first.
10:00
But if things are looking bleak, why does the official economy still look
10:04
perfectly fine on the news?
10:06
U.S. GDP grew at a 2.0% annual rate in the first quarter of 2026. On the surface,
10:12
that reads as a healthy, growing economy. But two things are hiding in that number.
10:16
First, it actually missed the 2.3% growth markets had expected, so it wasn't exactly a win. Second,
10:22
the whole jump rode on just two things: a giant surge in AI spending, and a rebound
10:28
in federal government spending that only happened because a shutdown had crushed the quarter before.
10:33
Strip out the AI boom and that government bounce, and first quarter growth would have
10:38
been close to flat. The economy didn't broadly grow. A small part of it boomed
10:42
loudly enough to drag the average up, and someone called that average a recovery.
10:47
Personal spending slowed, the part of the economy that's ordinary households buying ordinary things.
10:52
The personal saving rate fell to 3.6%, its lowest since October 2022. That means households kept
11:00
spending only by saving less, not by earning more. Fuel prices were already pressing on what
11:05
families could afford to put in the cart. So the economy has split cleanly in two.
11:10
One half is a roaring boom in tech and construction, driven by data centers and
11:15
chips and software and federal money on a giant scale. The other half is the goods economy,
11:20
where most people actually live and work. That half is shrinking steadily,
11:24
exactly the way the box data warned it would for a year. This is the root cause, and it explains
11:30
the squeeze you’re already feeling at home even while the news insists the economy is growing.
11:35
The official numbers aren't exactly lying. But they hide the truth.
11:39
They mix a goods slump with an AI explosion and report the average as if it described your life.
11:45
It doesn’t describe your life. It describes a server farm's life. The headlines say growth.
11:50
The boxes say otherwise.
11:52
People always assume gold is not an early warning of impending economic disaster.
11:57
It never was. Gold is insurance, the thing people buy after the danger is already
12:01
in plain sight. That's exactly why its price tends to spike after the damage is done rather
12:07
than before. By the time gold is all over the headlines, the blow has usually already landed.
12:12
Cardboard is the opposite. It runs months ahead of the
12:15
real economy because it sits at the very front of every decision to build anything. And right
12:20
now it’s sending one clear signal. None of that is a guess about
12:24
the future. It already happened. It might not be a single dramatic
12:27
crash one morning. It’s something slower and heavier: a long stretch of low growth and high
12:33
costs. The shelves will be thinner. The prices on the staples you can't stop buying will be firmer.
12:38
The goods economy will keep shrinking underneath a number held up by AI and government money.
12:44
For an ordinary household, that means paychecks buy a little less each month. The average
12:48
American job probably sits in the half of the economy that's shrinking. The boom everyone
12:53
keeps talking about is happening elsewhere. The box makers have already made their call. They
12:58
shut the mills and let the workers go. They aren't waiting for the news to confirm a crisis, because
13:03
they can already see it in their own order books. The warning sign is sitting on your
13:08
porch right now. It costs nothing to
13:10
look at, and so far it’s not been wrong. When the first link in the chain breaks,
13:15
it doesn’t stay there. It moves through production, then prices, then jobs, until the
13:20
effects show up everywhere at once. That’s when things start to get uncomfortable. Find out what
13:25
happens when it all comes tumbling down in “What If The US Economy CRASHES”. Or watch this instead.
