Apr 11

FYI.


Drought-Monitor-April-1

- Why Meat Prices Are Going To Continue Soaring For The Foreseeable Future (The American Dream, April 9, 2014):

The average price of USDA choice-grade beef has soared to $5.28 a pound, and the average price of a pound of bacon has skyrocketed to $5.46.  Unfortunately for those that like to eat meat, this is just the beginning of the price increases.  Due to an absolutely crippling drought that won’t let go of the western half of the country, the total size of the U.S. cattle herd has shrunk for seven years in a row, and it is now the smallest that is has been since 1951.  But back in 1951, we had less than half the number of mouths to feed.  And a devastating pig virus that has never been seen in the United States before has already killed up to 6 million pigs in this country and continues to spread like wildfire.  What all of this means is that the supply of meat is going to be tight for the foreseeable future even as demand for meat continues to go up.  This is going to result in much higher prices, and so food is going to put a much larger dent in American family budgets in the months and years to come.

One year ago, the average price of USDA choice-grade beef was $4.91.  Now it is up to $5.28, and the Los Angeles Times says that we should not expect prices to come down “any time soon”…

Come grilling season, expect your sirloin steak to come with a hearty side of sticker shock.

Continue reading »

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Mar 31

H/t reader squodgy:

“Personally I think more waste gas comes from the people who are supposed to protect us and give a service we pay for.
However, this link may be of interest as the dots do seem to join up.
Whoever JS is (and it is a discussion point), he does have a canny knack of finding a chink.”


- UPDATED MARCH 28 – PHOTOS OF DAM DRAINAGE AS IT HAPPENED – THE END of the California orange (Jim Stone):

The following photos are absolute proof they drained the dams on purpose, causing severe flooding and NEVER gave california growers a SINGLE DROP for the sole purpose of killing all the orange orchards, grape vineyards and almond groves. It is important to note that with any war effort waged by the usurpers of a conquored government, that fake documentation will be produced by the government to support the lie. That is when you have to use photos to prove that the documents, which show a drought and reduced out flows, are fake.

HERE IS THE PROOF. 2011 was called a drought year that was so bad they could not give the farmers any water (heads up, this is good).

But how can that be true when the Sacramento river looked like THIS:

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Feb 28

FYI.


drought-1234

- California Gets Rain…and Possibly Flash Floods (The Daily Sheeple, Feb 27, 2014):

It’s raining in California, and much more is forecast before the week is out. Although it is more than welcome it doesn’t mean the drought is over, it would take much more precipitation to fill the reservoirs. The  rain that is due to fall will bring with it major problems for some residents.

The areas of Glendora and Azusa, northeast of Los Angeles it at the foot of the San Gabriel Mountains, an area that was hit by wildfires recently. 2,000 acres of trees were destroyed by the fires, and the loose ash and dried earth on the slopes where the trees once stood, make the area very prone to mud slides, some of which may contain debris such as semi-burnt tree stumps and rocks.

Mudslides have an enormous power, gaining speed as they move down the mountain.

Flowing like rivers they wipe out everything in their path and can move at speeds that give little chance of escape.

Fox News reports:

Continue reading »

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Feb 27

drought-137

- California Water Shortage – The Game Changer That Will Trigger the Food Crisis (Waking Times, Feb 26, 2014):

For What It’s Worth… 

(I live in the North Counties of Northern California and manage a small Biodynamic farm forgoing a previous existence as a research analyst on Wall Street and owner of a small investment boutique firm for over two decades.)

Farmers throughout California are dramatically cutting way back on how much food they will grow this year. We know this because initial bulk seed orders are way down as the seed ordering season hits it peak. Just released news about severe water cuts by the Federal government to California farmlands will mean further cuts to their planting schedules.

Continue reading »

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Feb 27

obama-golf

- Obama Plays Water-Guzzling Desert Golf Courses Amid California Drought (TIME, Feb 17, 2014):

After preaching shared sacrifice to assuage the California water shortage, Obama has played some of the country’s thirstiest golf courses

President Barack Obama traveled to California on Friday to highlight the state’s drought emergency at two events near Fresno, calling for shared sacrifice to help manage the state’s worst water shortage in decades. He then spent the rest of the weekend enjoying the hospitality of some of the state’s top water hogs: desert golf courses.

Vacationing with DVDs of his favorite television shows and multiple golf outings with his buddies, the duffer in chief played at two of the most exclusive courses in the Palm Springs area. On Saturday, Obama played at the Sunnylands estate, built by the late billionaire Walter Annenberg, which features a nine-hole course that is played like 18 holes. The following day he golfed at billionaire Oracle founder Larry Ellison’s 19-hole Porcupine Creek. On Presidents’ Day, Obama hit the links at Sunnylands once again.

The 124 golf courses in the Coachella Valley consume roughly 17% of all water there, and one-quarter of the water pumped out of the region’s at-risk groundwater aquifer, according to the Coachella Valley Water District. Statewide, roughly 1% of water goes to keep golf courses green. Each of the 124 Coachella Valley courses, on average, uses nearly 1 million gallons (3.8 million L) a day because of the hot and dry climate, three to four times more water per day than the average American golf course.

Continue reading »

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Feb 22

drought-137

- Feds Withhold Water To California Farmers For First Time In 54 Years (ZeroHedge, Feb 21, 2014):

The US Bureau of Reclamation released its first outlook of the year and finds insufficient stock is available in California to release irrigation water for farmers. This is the first time in the 54 year history of the State Water Project. “If it’s not there, it’s just not there,” notes a Water Authority director adding that it’s going to be tough to find enough water, but farmers are hit hardest as “they’re all on pins and needles trying to figure out how they’re going to get through this.” Fields will go unplanted (supply lower mean food prices higher), or farmers will pay top dollar for water that’s on the market (and those costs can only be passed on via higher food prices).

Via AP,

Federal officials announced Friday that many California farmers caught in the state’s drought can expect to receive no irrigation water this year from a vast system of rivers, canals and reservoirs interlacing the state.

Continue reading »

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Feb 18

Related info:

- California’s New ‘Dust Bowl’: ‘It’s Gonna Be A Slow, Painful, Agonizing Death’ For Farmers

- California Drought Emergency: Weather Modification Through HAARP & Chemtrails – Satellite Photos Show Pacific Storms Stopped Cold, Destroyed


- 200 Years Of Scorchitude: Professor Warns California To Brace For A “Mega-Drought” (ZeroHedge, Feb 17, 2014):

Two years into California’s drought and locals are repeating (mantra-like) “we’ve never seen anything like it.” They are right, of course, since this is the worst period of rainlessness since records began… but if Cal Berkeley professor Lynn Ingram is correct, they ain’t seen nothing yet. The paleoclimatologist fears, if very long-run history repeats, California should brace itself for a mega drought, as National Geographic reports, a drought that could last for 200 years or more.

Via National Geographic,

California is experiencing its worst drought since record-keeping began in the mid 19th century, and scientists say this may be just the beginning. B. Lynn Ingram, a paleoclimatologist at the University of California at Berkeley, thinks that California needs to brace itself for a megadrought—one that could last for 200 years or more.

Continue reading »

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Feb 16

See also:

- California Drought Emergency: Weather Modification Through HAARP & Chemtrails – Satellite Photos Show Pacific Storms Stopped Cold, Destroyed


- California’s New ‘Dust Bowl’: “It’s Gonna Be a Slow, Painful, Agonizing Death” For Farmers (ZeroHedge, Feb 15, 2014):

It’s really a crisis situation,” exclaims one California city manager, “and it’s going to get worse in time if this drought doesn’t alleviate.”

california-drought

For the state that produces one-third of the nation’s fruits and vegetables, the driest spell in 500 years has prompted President Obama to make $100 million in livestock-disaster aid available within 60 days to help the state rebound from what he describes is ” going to be a very challenging situation this year… and potentially some time to come.”

As NBC reports, Governor Jerry Brown believes the “unprecedented emergency” could cost $2.8 billion in job income and $11 billion in state revenues – and as one farmer noted “we can’t recapture that.” Dismal recollections of the 1930′s Dust Bowl are often discussed as workers (and employers) are “packing their bags and leaving town…” leaving regions to “run the risk of becoming desolate ghost towns as local governments and businesses collapse.”

Via NBC,

The truth of the matter is that this is going to be a very challenging situation this year, and frankly, the trend lines are such where it’s going to be a challenging situation for some time to come,” Obama said Friday during a meeting with local leaders in Firebaugh, Calif., a rural enclave not far from Fresno. Continue reading »

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Feb 10

- California drought hits farmers hardest (Washington Post, Feb 9, 2014):

Without help from the heavens, Joe Del Bosque figures that 2014 will be the last year before many family farmers in California’s vast San Joaquin Valley begin to go bankrupt.

And 2014 is going to be bad. Really bad. Del Bosque has 2,000 acres scattered across several farms west of Fresno, near Firebaugh. He will leave 500 to 700 acres unplanted because there is no water for his crops.

That’s about 650,000 boxes of cantaloupe, regular and organic, he won’t be harvesting come July — about $3 million worth of produce, he estimated. It’s a few hundred workers, most of them migrants, he won’t be hiring. It’s money that won’t be spent in grocery and hardware stores in small towns across the region that produces half of the country’s homegrown fruits and vegetables. It’s a lot of schools with empty seats as farm workers looking for jobs move on with their families.

“Everybody will be hurt,” Del Bosque said. “When farmers idle land, the people who have small businesses in small communities . . . they’ll all suffer. It’s a huge ripple effect through the whole valley.”

California is entering its third year of drought, a recurring nightmare for those old enough to remember the prolonged dry period of 1987 to 1991 and the disaster of 1976 and 1977, the previous record-setting drought.

Continue reading »

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Feb 04

California-Drought

- Sprinklers Run Dry in Santa Cruz Amid California Drought (Bloomberg, Feb 4, 2014):

Cities and institutions across California are resorting to exceptional measures to deal with a worsening drought, from mandatory water restrictions in beachside Santa Cruz to voluntary cutbacks in Los Angeles.Santa Cruz, which relies on rainfall rather than mountain runoff or imported water, won’t permit residents to drain and refill swimming pools or hot tubs and has barred restaurants from serving water unless specifically requested.The Metropolitan Water District, the Los Angeles-based utility for 19 million people in Southern California, is asking customers to voluntarily reduce water use by 20 percent. Hearst Castle, one of the state’s top tourist attractions, is getting about one-sixth of its usual water from mountain springs and is diverting resources from its outdoor swimming pools to irrigate 137 acres of gardens and grounds.“People do know about this and are becoming convinced that there’s a statewide crisis,” said Tim Quinn, executive director of the Association of California Water Agencies. “The biggest thing with calling it ‘mandatory’ is that it sounds worse than ‘voluntary.’ The people of California are well down that path already.”About two-thirds of California is gripped by “severe” or “exceptional” drought, the most severe conditions, according to the U.S. Drought Monitor, a federal website. Nine percent of the state — all in the San Joaquin Valley — is considered exceptionally dry, according to the website, which is updated weekly. It’s the state’s most severe drought since at least 1977, according to Jeffrey Kightlinger, general manager of the Metropolitan Water District.

No Water

Continue reading »

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Feb 04

- California: Before And After The Drought, And Why It’s Only Going To Get Worse (ZeroHedge, Feb 3, 2014):

While the Northeast is blanketed by another winter storm, California has its own, quite inverse, climatic problems in the form of a historic drought which as Bloomberg reports, is forcing farmers in the fertile central valley region to fallow thousands of acres of fields and has left 17 rural towns so low on drinking water that the state may need to start trucking in supplies. It is so bad that water reservoirs are at about 60 percent of average, according to state water data, and falling as rainfall remains at record low levels.

Unfortunately for our California readers, it is going to get worse before it gets better because mountain snowpack is about 12 percent of normal for this time of year. The following picture of California from January and a year ago shows just this dramatic difference, which confirms that there is little hope for the parched state.

California-snowpack-drought

Here is the WaPo’s Reid Wilson explaining the above visual comparison:

Continue reading »

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Feb 03

Related info:

- Unprecedented: Amid Severe Drought, California Says It Won’t Allot Water To Local Agencies

- California Drought Emergency: Weather Modification Through HAARP & Chemtrails – Satellite Photos Show Pacific Storms Stopped Cold, Destroyed


- West Coast Is “On Track for Having the Worst Drought In 500 Years” (Washington’s Blog, Feb 3, 2014):

Is the West Coast In the Middle of a “Mega Drought”?

The Los Angeles Times reports:

“We are on track for having the worst drought in 500 years,” said B. Lynn Ingram, a professor of earth and planetary sciences at the University of California, Berkeley.

California droughts can last decades … or even centuries.  As the San Jose Mercury News points out:

Continue reading »

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Feb 01

- Amid drought, California says it won’t allot water to local agencies (Al Jazeera, Jan 31, 2014):

State agency makes unprecedented announcement as California faces its worst drought in modern history

Amid severe drought conditions, California officials announced Friday they won’t send any water from the state’s vast reservoir system to local agencies beginning this spring, an unprecedented move that affects drinking water supplies for 25 million people and irrigation for 1 million acres of farmland.

The announcement marks the first time in the 54-year history of the State Water Project — a water storage and delivery system of reservoirs, aqueducts, powerplants and pumping plants — that such an action has been taken.

Continue reading »

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Jan 22

HAARP:

- Scientific Paper On HAARP: ‘High-Power ELF Radiation Generated By Modulated HF Heating Of The Ionosphere Can Cause Earthquakes, Cyclones And Localized Heating’

- Jesse Ventura Conspiracy Theory: ‘HAARP’ (Full Episode) (Video)

Chemtrails:

- CHEMTRAILS A Planetary Catastrophe Created By Geoengineering (MUST-SEE Photos!)

- CHEMTRAILS For Decades NOW, Admission By NASA Scientist (Video)

- Former FBI Chief On Chemtrails: Genocide All Over The World (Video)

Related info:

- Geoengineeringwatch.org Weather update January 12 2014 (GeoEngineeringWatch):

California had yet another chance of rain completely “sprayed away”. The total precipitation from this storm for parts of Northern California where I live was only a few hundredths of an inch, the weather makers absolutely will not let the rain fall in our state for now. To give prospective to this my location is now some 250 inches short of rain for the last 7 years, that’s over 20 feet of rain. In contrast to the intentionally induced California drought, on Friday Palm Beach Florida got pounded with almost 24 inches of rain. Almost 2 feet of rain in a single day. This is geoengineering, this is literally “weather warfare”.

- Breaking News: Air Raids, Chemical Weapons Hit California (GeoEngineeringWatch, Dec 29, 2013):

The Chemtrails – HAARP Combination And The Killer Drought

- California Governor Declares Statewide Drought Emergency (USA Today, Jan 17, 2014):

California Governor Declares Statewide Drought Emergency
This image obtained from the National Oceanic and Atmospheric Administration shows snow and water equivalents in the Sierra Nevada mountain range in California abnormally low for January 2014 compared to the same time in 2013.(Photo: NASA/NOAA, AFP/Getty Images)

Watch the satellite photos down below.


- California drought: Scientists puzzled by persistence of blocking ‘ridge’ (Christian Science Monitor, Jan 21, 2014):

While much of the United States has experienced a weather year with fewer extremes and an easing drought, the record-breaking California drought – the worst since 1895 – is not leaving the region anytime soon, according to climatologists.

The unseasonal balmy but dry weather is the result of an equally unprecedented high pressure ridge lurking offshore and blocking the typical winter storms needed to drop precipitation all along the West Coast.

Continue reading »

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Jan 18

- California governor declares drought emergency (USA Today, Jan 17, 2014):

SACRAMENTO — In what could become one of California’s biggest crises in years, Gov. Jerry Brown declared a statewide drought emergency Friday, an action that sets the stage for new state and federal efforts.

The governor also wants to focus Californians on the possibility of water shortages.

“All I can report to you is it’s not raining today and it’s not likely to rain for several weeks,” Brown said in a news conference in San Francisco. On Thursday, the National Weather Service’s Climate Prediction Center forecast below normal precipitation for two-thirds of California through April.

Continue reading »

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Aug 11

- Texan drought sets residents against fracking – video (Guardian, Aug 11, 2013):

In Mertzon and Barnhart in western Texas, the worst drought in two generations is choking the water supply. Water shortages are raising tensions between locals and the fracking industry. Drilling for shale gas uses up to 8m gallons of water each time a well is fracked. Suzanne Goldenberg reports




More info on fracking:

- ‘The Real Threat: Acid Jobs’

Fracking Our Food Supply – Livestock Falling Ill In Fracking Regions

- Fracking The Great Lakes

- Fracking Chemical Cocktail Interview – ‘Fracktastic’ Radionuclides And Total Destruction Coming Your Way (Video)

- David Letterman On Fracking: ‘We’re Screwed’ (Video)

- Human-Made Earthquakes Reported In Central U.S (Reuters)

- US Government Confirms Link Between Earthquakes And Fracking

- European Gas Giant Backs French Fear Of Fracking

- Texas Forces Firms To Open Up On ‘Fracking’

- Fracking Hell: Toxic And Radioactive Waste – The Untold Story

- The Oil and Gas Industry’s 800-Pound Gorilla: RADIATION!

- ‘Fracking’ Result (= Contamination) For UK Shale Gas Will Be Kept Secret Until 2015

- US: Natural Gas Wells’ Contaminated Water Hits Rivers

- GASLAND Trailer 2010 (Documentary)

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Aug 07

- New Mexico is the driest of the dry (LA Times, Aug 6, 2013)

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May 24

- The Colorado River, The High Plains Aquifer And The Entire Western Half Of The U.S. Are Rapidly Drying Up (Economic Collapse, May 23, 2013):

What is life going to look like as our precious water resources become increasingly strained and the western half of the United States becomes bone dry?  Scientists tell us that the 20th century was the wettest century in the western half of the country in 1000 years, and now things appear to be reverting to their normal historical patterns.  But we have built teeming cities in the desert such as Phoenix and Las Vegas that support millions of people.  Cities all over the Southwest continue to grow even as the Colorado River, Lake Mead and the High Plains Aquifer system run dry.  So what are we going to do when there isn’t enough water to irrigate our crops or run through our water systems?  Already we are seeing some ominous signs that Dust Bowl conditions are starting to return to the region.  In the past couple of years we have seen giant dust storms known as “haboobs” roll through Phoenix, and 6 of the 10 worst years for wildfires ever recorded in the United States have all come since the year 2000.  In fact, according to the Los Angeles Times, “the average number of fires larger than 1,000 acres in a year has nearly quadrupled in Arizona and Idaho and has doubled in every other Western state” since the 1970s.  But scientists are warning that they expect the western United States to become much drier than it is now.  What will the western half of the country look like once that happens?

A recent National Geographic article contained the following chilling statement… Continue reading »

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Jan 21


A farmer holds a fistful of arid topsoil in Logan, Kansas.

- The current drought is a bad one, and it’s not going away (Rolling Stone, Jan 17, 2013):

Droughts, it could be argued, are the opposite of news. By definition, they represent the absence of something (namely, adequate rain) happening. And they only occur when that something has already been not-happening for a very long time. As a result, droughts tend not to make the front page. When they do – as happened last summer, when headlines trumpeted the worst U.S. drought conditions in 50 years – the public gets concerned. But soon enough, droughts begin to feel like business as usual again, invisible in their very ubiquity.

It’s time to start paying attention.

Why?

Continue reading »

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Jan 03

- Mississippi River nears historic lows, shipping at risk (Reuters, Jan 2, 2013):

The drought-drained Mississippi River will rise slightly later this week between St. Louis and Cairo, Illinois, but later continue its decline toward historic lows, according to a National Weather Service forecast.Low water, due to the worst U.S. drought since 1956, has already impeded the flow of billions of dollars worth of grain, coal, fertilizer and other commodities between the central United States and shipping terminals at the Gulf of Mexico.

A further drop in river levels could halt commercial shipping traffic entirely by this weekend, the American Waterways Operators and the Waterways Council Inc said in a statement on Wednesday.

Continue reading »

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Dec 24


YouTube

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Nov 14

- Some Horses Starving As Hay Prices Continue To Rise (CBS, Nov 12, 2012):

DOUGLAS COUNTY, Colo. (CBS4) – Horses that have nearly starved to death has become a problem, and experts say it will only get worse as the cold days of winter move in.

Many horse owners say they just can’t afford to feed the animals because of sky-high hay prices, which are elevated due to the drought in Colorado and across the nation.

Drought conditions this year range from dry to exceptional for nearly every state west of the Missisippi River. That means less hay has been grown and prices are at three times the normal level.

Continue reading »

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Oct 18

Flashback:

- USDA: No strategic grain reserves … they sold them!


- Global Food Reserves Have Reached Their Lowest Level In Almost 40 Years (The Truth, Oct 16, 2012):

For six of the last eleven years the world has consumed more food than it has produced.  This year, drought in the United States and elsewhere has put even more pressure on global food supplies than usual.  As a result, global food reserves have reached their lowest level in almost 40 years.  Experts are warning that if next summer is similar to this summer that it could be enough to trigger a major global food crisis.  At this point, the world is literally living from one year to the next.  There is simply not much of a buffer left.  In the western world, the first place where we are going to notice the impact of this crisis is in the price of food.  It is being projected that overall food prices will rise between 5 and 20 percent by the end of this year.  It is becoming increasingly clear that the world has reached a tipping point.  We aren’t producing enough food for everyone anymore, and food reserves will continue to get lower and lower.  Eventually they will be totally gone.

The United Nations has issued an unprecedented warning about the state of global food supplies.  According to the UN, global food reserves have not been this low since 1974Continue reading »

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Sep 24

Brace yourself for some painful “agflation”. That is the shorthand for agricultural commodity inflation, otherwise known as rising food prices.


Rabobank thinks the consumer impact could be less painful this time around compared to 2008, when there were severe shortages of wheat and rice. That is because today’s shortages are being seen more in crops used as animal feed, such as corn and soybeans. Photo: Reuters

- World on track for record food prices ‘within a year’ due to US drought (Telegraph, sep 23, 2012):

They are being driven upwards by the climb in grain and oilseed prices as US crops weather the country’s worst drought since 1936, while the farming belts of Russia and South America suffer through similar water shortages.

What we are seeing represents the third major rally in global grain and oilseed prices in just half a decade.

Continue reading »

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Sep 03

- ‘We’ll make a killing out of food crisis’, psychopathic Glencore trading boss Chris Mahoney boasts (Sott.net, Aug 30, 2012):

Drought is good for business, says world’s largest commodities trading company

The United Nations, aid agencies and the British Government have lined up to attack the world’s largest commodities trading company, Glencore, after it described the current global food crisis and soaring world prices as a “good” business opportunity.

With the US experiencing a rerun of the drought “Dust Bowl” days of the 1930s and Russia suffering a similar food crisis that could see Vladimir Putin’s government banning grain exports, the senior economist of the UN’s Food and Agriculture Organisation, Concepcion Calpe, told The Independent: “Private companies like Glencore are playing a game that will make them enormous profits.”

Continue reading »

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Aug 30

The U.S. Drought Is Hitting Harder Than Most Realize (ZeroHedge, Aug 20, 2012)

 

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Aug 26

Greece, Italy and Spain also had a different climate before they all started to cut down their forests.

Related info:

- Greening the Desert



A temple in Tikal, one of the Mayan city states

- What Was Behind Mysterious Collapse of the Mayan Empire? (LiveScience, Aug 22, 2012)

The city states of the ancient Mayan empire flourished in southern Mexico and northern Central America for about six centuries. Then, around A.D. 900 Mayan civilization disintegrated.

Two new studies examine the reasons for the collapse of the Mayan culture, finding the Mayans themselves contributed to the downfall of the empire.

Scientists have found that drought played a key role, but the Mayans appear to have exacerbated the problem by cutting down the jungle canopy to make way for cities and crops, according to researchers who used climate-model simulations to see how much deforestation aggravated the drought.

“We’re not saying deforestation explains the entire drought, but it does explain a substantial portion of the overall drying that is thought to have occurred,” said the study’s lead author Benjamin Cook, a climate modeler at Columbia University’s Lamont-Doherty Earth Observatory and the NASA Goddard Institute for Space Studies, in a statement.

Continue reading »

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Aug 22

Related info:

- AND NOW … Ranchers Struggling With Skyrocketing Corn Prices Feed Their Cows Second-Hand Candy During Drought

- Global Geoengineering Programs: ‘Why In The World Are They Spraying?’ (Full Length Documentary HD):


- US corn, soy prices hit records as drought lingers (France 24/AFP, Aug 22, 2012):

US corn and soybean prices closed at new record highs Tuesday as a new survey showed worse-than-expected crop damage from a brutal drought across the country’s central breadbasket.The price of corn jumped 1.7 percent to $8.3875 a bushel, while soybeans finished at $17.3025 a bushel, up 2.8 percent from Tuesday.

That left the corn price up 68 percent from June and soybeans 39 percent higher.

Continue reading »

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Aug 21

- The Growing Threat Of Soybean-Inspired Social Unrest In China (ZeroHedge, Aug 19, 2012):

Two weeks ago we explained why the drought-inspired soaring price of Soybeans  – specifically from the US – would notably influence global central-planners’ actions – and more specifically the Chinese (given its high impact on food price inflation). Food prices remain elevated and the PBoC is undertaking Reverse Repos – the exact opposite of an RRR-driven easing program so many expected. However, there is a further, deeper, and more troubling consequence than ‘simple’ inflationary arguments – that of social unrest. Confirming our insight, the LA Times points out,

Soybean oil is the most important edible oil in China with more than two-thirds of cooking oil consumed in China coming from soybeans – and most of those soybeans are supplied by the US (more than half of US exports are to China and the US is China’s number 1 supplier). According to one official this “makes [China] vulnerable to the drought” and bound to the fortunes of farmers in the American heartland. The Chinese devote more than 20% of their income to food (three times more than Americans – according to the USDA).

Continue reading »

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Aug 18

- Cows eating candy during the drought (WPRI, Aug 16, 2012):

MAYFIELD, Ky. (CNN/WPSD) – Ranchers have struggled with skyrocketing corn prices, because the drought has made feeding their livestock very expensive. But one rancher has turned to a very sweet solution.

At Mayfield’s United Livestock Commodities, owner Joseph Watson is tweaking the recipe for success.

“Just to be able to survive, we have to look for other sources of nutrition,” he said.

His 1,400 cattle are no longer feeding off corn. The prices, Watson says, are too high to keep corn in stock. So earlier this year, he began to buy second-hand candy.

“It has a higher ratio of fat than actually feeding straight corn,” Watson explained. “It’s hard to believe it will work but we’ve already seen the results of it now.”

Continue reading »

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