Aug 01

FYI.

All food prices are rising everywhere.

(I do not eat meat.)


- At $15.99/lb — I can no longer afford to eat meat (Intellihub, July 30, 2014):

HAIKU, Hawaii (INTELLIHUB) — I went to the local market today in search of a few steaks to barbeque tonight with my family and what I found may shock you.

Not only could I not afford the three cuts of steak I needed for the dinner I was going to whip up, to top it all off the steaks were very small by proportion.

At nearly $16.00 per pound I had to pass, looks like we will be eating a lot of rice and beans in the near future as meat has become unaffordable for most middle-class Americans.

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Jul 26

- Food Inflation Watch: California Farmers’ Water Costs Surge 700% After Government Cuts Supply (ZeroHedge, July 24, 2014):

When we reported on the government’s decisiosn to withhold irrigation water to California for the first time in 54 years, we warned there would be consequences: 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). Sure enough, as Bloomberg reports, farmers in California’s Central Valley, the world’s most productive agricultural region, are paying as much as 10 times more for water than they did before the state’s record drought cut supply.

As Bloomberg Briefs’ Alison Vekshin reports, Continue reading »

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Jul 19

- Where The Real Inflation Is (ZeroHedge, July 18, 2014):

Despite being dismissed as “noise”, inflation is here and it’s rising. As the following chart shows, if you eat, drive, use electricity, or live in a house, you are paying dramatically more this year than you did last year. On the bright side, if you wear clothes or use electronics, prices have dropped (but remember deflation is bad…). How much longer can the Fed pull the wool over the eyes of the people?

20140717_inflation

Chart: Goldman Sachs

 

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Jul 18

- If This Keeps Up, They Will Have To Start Putting Armed Guards On Food Trucks (Economic Collapse, July 16, 2014):

The basic necessities in life just keep getting more expensive.  On Tuesday, Hershey announced that the price of all of their chocolate bars is going to go up by about 8 percent.  That is particularly distressing to me, because I am known to love chocolate.  But if it was just chocolate that was becoming significantly more expensive perhaps that would be okay.  Last month, it was coffee.  J.M. Smucker, one of the largest coffee producers in the United States, announced that it planned to raise coffee prices by about 9 percent.  And Starbucks has announced a bunch of price increases across the board on their coffee products.  Of course we could all survive without chocolate and coffee, but as you will see below just about every food category is becoming more expensive.  If this keeps up, could we eventually see armed guards in grocery stores and on food trucks? Continue reading »

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Jul 06

- Foodflation – Since QE3, Breakfast Is Up Over 24% (ZeroHedge, July 6, 2014):

Having pointed out the ‘surges’ in the cost of your 4th of July burger at the behest of Greenspan and Bernanke, we thought a reflection on the soaring costs of ‘the most important meal of the day’ were in order. As the following chart illustrates in words and pictures even a PhD Fed economist or CNBC pretend-economist could understand – food-flation is here from breakfast through dinner (no matter how many iPads we try and eat).

foodflation

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Jun 28

200 years ago our farmland had 50 cm of topsoil, now there are only 15 cm left.

And we are are losing about every 16 years another 2,5 cm.

The Hunzas needed to try our soil killing fertilizer only once to figure out that the promises they’ve been given about our chemical fertilizers were BS and that chemical fertilizers are in fact harmful for the soil.

(As a side note the Hunzas do NOT know hypertension, cancer arthritis, diabetes, tuberculosis, asthma, karies, presbyopia etc.)

We will have to (re-)learn to grow our food biologically or there will be no food at all.

Soil erosion also played probably an important role in the decline and collapse of the Egyptian and Greek empires.


- U.S. food prices rising 367% faster than inflation; chemical agriculture headed for catastrophic failure (Natural News, June 17, 2014):

Food prices are now skyrocketing across the USA, says the Bureau of Labor Statistics (BLS). Their most recent report (1) reveals that prices of meat, poultry, fish and eggs leaped 7.7 percent over the last year. That’s nearly 367% higher than the official 2.1% inflation rate claimed by the federal government. (2)

Prices on these food items have risen 664% in the last five decades, according to the BLS, but much of the price acceleration has happened in just the last few years… and there’s no end in sight. Continue reading »

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Jun 21

Quantitative easing =  printing money = creating money out of thin air = increasing the money supply = inflation = hidden tax on monetary assets = theft!

“When a country embarks on deficit financing (Obamanomics) and inflationism (Quantitative easing) you wipe out the middle class and wealth is transferred from the middle class and the poor to the rich.”
- Ron Paul

“Deficits mean future tax increases, pure and simple. Deficit spending should be viewed as a tax on future generations, and politicians who create deficits should be exposed as tax hikers.”
- Ron Paul


weimar-hyperinflation

- Inflation? Only If You Look At Food, Water, Gas, Electricity And Everything Else (Economic Collapse, June 19, 2014):

Have you noticed that prices are going up rapidly?  If so, you are certainly not alone.  But Federal Reserve chair Janet Yellen, the Obama administration and the mainstream media would have us believe that inflation is completely under control and exactly where it should be.  Perhaps if the highly manipulated numbers that they quote us were real, everything would be fine.  But of course the way that the inflation rate is calculated has been changed more than 20 times since the 1970s, and at this point it bears so little relation to reality that it is essentially meaningless.  Anyone that has to regularly pay for food, water, gas, electricity or anything else knows that inflation is too high.  In fact, if inflation was calculated the same way that it was back in 1980, the inflation rate would be close to 10 percent right now.

But you would never know that listening to Federal Reserve chair Janet Yellen.  In the video posted below, you can listen to her telling the media that there is absolutely nothing to be concerned about…

And it is really hard to get too upset with Janet Yellen. Continue reading »

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Jun 12

hundred-dollar-bills

- U.S. Food Inflation Running at 22% (Breitbart, May 26, 2014):

After five years of the federal government telling the public that despite a $3.5 trillion increase in monetary expansion, the inflation rate is below +2%, the Department of Agriculture (DOA) just warned the American public that the consumer price index for food is up by 10% this year.

The DOA tried to blame food inflation on the drought conditions in California, but last year’s drought was worse and food prices fell by -6%. The real problem is Federal Reserve monetary stimulus is stimulating inflation. I reported in “Food Price Inflation Scares the Fed” two months ago that commodity food costs were exploding on the upside. Given the lag in commodity costs impacting prices on grocery store shelves, annual U.S. food inflation is now running at +22% and rising. Continue reading »

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May 16

California-Drought-2014

- The Meat Crisis Is Here: Price Of Shrimp Up 61% – 7 Million Pigs Dead – Beef At All-Time High (The Economic Collapse, May 15, 2014):

As the price of meat continues to skyrocket, will it soon be considered a “luxury item” for most American families?  This week we learned that the price of meat in the United States rose at the fastest pace in more than 10 years last month.  Leading the way is the price of shrimp.  According to the U.S. Bureau of Labor Statistics, the price of shrimp has jumped an astounding 61 percent compared to a year ago.  The price of pork is also moving upward aggressively thanks to a disease which has already killed about 10 percent of all of the pigs in the entire country.  And the endless drought in the western half of the country has caused the size of the U.S. cattle herd to shrink to a 63 year low and has pushed the price of beef to an all-time high.  This is really bad news if you like to eat meat.  The truth is that the coming “meat crisis” is already here, and it looks like it is going to get a lot worse in the months ahead.
Continue reading »

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May 16

Related info:

- The Beginning Of The End Of Precious Metals Manipulation: The London Silver Fix Is Officially Dead:

The London Silver Market Fixing Limited (the ‘Company’) announces that it will cease to administer the London Silver Fixing with effect from close of business on 14 August 2014.


- Report: Food Prices Skyrocket: “We’re Going to Have a Major Problem Coming Into the Fall” (SHFTplan, May 15, 2014):

While government statisticians claim robust growth, recent data points suggest otherwise. Consumers are quickly running out of money, home sales have collapsed and hit their biggest drop in three years, there are more Americans out of the labor force than ever before, and one third of adults under the age of 35 are living with their parents because they can no longer afford to pay their own mortgage.

By all accounts, the reality is that we are now factually in a recession, a point further emphasized by the recent revelation that American companies are experiencing near zero percent earnings growth. Continue reading »

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Apr 18

- Are You Ready For The Price Of Food To More Than Double By The End Of This Decade?  (Economic Collapse, April 18, 2014):

Do you think that the price of food is high now?  Just wait.  If current trends continue, many of the most common food items that Americans buy will cost more than twice as much by the end of this decade.  Global demand for food continues to rise steadily as crippling droughts ravage key agricultural regions all over the planet.  You see, it isn’t just the multi-year California drought that is affecting food prices.  Down in Brazil (one of the leading exporters of food in the world), the drought has gotten so bad that 142 cities were rationing water at one point earlier this year.  And outbreaks of disease are also having a significant impact on our food supply.  A devastating pig virus that has never been seen in the U.S. before has already killed up to 6 million pigs.  Even if nothing else bad happens (and that is a very questionable assumption to make), our food prices are going to be moving aggressively upward for the foreseeable future.  But what if something does happen?  In recent years, global food reserves have dipped to extremely low levels, and a single major global event (war, pandemic, terror attack, planetary natural disaster, etc.) could create an unprecedented global food crisis very rapidly.

Continue reading »

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Mar 26

- The Real Inflation Fear – US Food Prices Are Up 19% In 2014 (ZeroHedge, March 26, 2014):

We are sure the weather is to blame but what happens when pent-up demand (from a frosty east coast emerging from its hibernation) bumps up against a drought-stricken west coast unable to plant to meet that demand? The spot price (not futures speculation-driven) of US Foodstuffs is the best performing asset in 2014 – up a staggering 19%

food-inflation

h/t Bloomberg’s Chase van der Rhoer


And it will only get much, much worse.

And 2008 will seem like a walk in the park.

Flashback:

Quantitative easing =  printing money = creating money out of thin air = increasing the money supply = inflation = hidden tax on monetary assets = theft!

When a country embarks on deficit financing (Obamanomics) and inflationism (Quantitative easing) you wipe out the middle class and wealth is transferred from the middle class and the poor to the rich.
- Ron Paul

“Deficits mean future tax increases, pure and simple. Deficit spending should be viewed as a tax on future generations, and politicians who create deficits should be exposed as tax hikers.”
- Ron Paul

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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 18

The Consumer Price Index does (intentionally) not include food and energy.



YouTube

- Food prices soar as incomes stand still (CBS News, Feb 16, 2014):

NEW YORK – Writer Jen Singer, the mother of two teenage boys, wrestles with her grocery list every week to keep the household budget from getting away from her.

“I’d like the government to stop by my house, come food shopping with me and see where the real costs are,” she said.

The adage “An apple a day keeps the doctor away” is impossible thanks to apple prices, she said.

Continue reading »

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Feb 17

U.S.-Drought-Monitor-California-February-11-2014

- 15 Reasons Why Your Food Bill Is Going To Start SOARING (Economic Collapse, Feb 16, 2014):

Did you know that the U.S. state that produces the most vegetables is going through the worst drought it has ever experienced and that the size of the total U.S. cattle herd is now the smallest that it has been since 1951?  Just the other day, a CBS News article boldly declared that “food prices soar as incomes stand still“, but the truth is that this is only just the beginning.  If the drought that has been devastating farmers and ranchers out west continues, we are going to see prices for meat, fruits and vegetables soar into the stratosphere.  Already, the federal government has declared portions of 11 states to be “disaster areas”, and California farmers are going to leave half a million acres sitting idle this year because of the extremely dry conditions.  Sadly, experts are telling us that things are probably going to get worse before they get better (if they ever do).  As you will read about below, one expert recently told National Geographic that throughout history it has been quite common for that region of North America to experience severe droughts that last for decades.  In fact, one drought actually lasted for about 200 years.  So there is the possibility that the drought that has begun in the state of California may not end during your entire lifetime.

Continue reading »

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Oct 31

- Don’t Worry – The Government Says That The Inflation You See Is Just Your Imagination (Economic Collapse, Oct 29, 2013):

If you believe that there is high inflation in the United States, you are just imagining things.  That is the message that the U.S. government and the Federal Reserve would have us to believe.  You might have noticed that the government announced on Wednesday that the cost of living increase for Social Security beneficiaries will only be 1.5 percent next year.  This is one of the smallest cost of living increases that we have ever seen.  The federal government is able to get away with this because the official numbers say that there is hardly any inflation in the U.S. right now.  Of course anyone that shops for groceries or that pays bills regularly knows what a load of nonsense the official inflation rate is.  The U.S. government has changed the way that inflation is calculated numerous times since 1978, and each time it has been changed the goal has been to make inflation appear to be even lower.  According to John Williams of shadowstats.com, if the inflation rate was still calculated the same way that it was back when Jimmy Carter was president, the official rate of inflation would be somewhere between 8 and 10 percent today.  But if the mainstream news actually reported such a number, everyone would be screaming and yelling about getting inflation under control.  Instead, the super low number that gets put out to the public makes it look like the Federal Reserve has plenty of room to do even more reckless money printing.  It is a giant scam, but most Americans are falling for it.

Meanwhile, the prices of the things that most Americans buy on a regular basis just keep going up.  The following are just a few examples of price inflation that we have seen lately: Continue reading »

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Mar 09

- Reality Check: The Dow Jones Industrial Average vs. Bananas (Sovereign Man, March 8, 2013):

Reporting from Santiago, Chile

The Dow Jones Industrial Average, one of the key benchmarks of the US stock market, has soundly surpassed its all-time high. And most of the investing world is toasting their collective success and celebrating the recovery.

It’s a funny thing, really. Most investors only think in terms of ‘nominal’ numbers, i.e. Dow 14,000+ is 40% higher than Dow 10,000 (back in November 2009). But few think in terms of ‘real’ numbers… inflation-adjusted averages.

Everyone knows that inflation exists. We can all look back on prices from the past and realize instantly how much more expensive things have become. Conversely, though, most people don’t think about the stock market like this.

The reality is, though, that when you adjust for inflation, the Dow is well below its highs from over a decade ago. Continue reading »

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Feb 19

- The Reflation Party Is Ending As China Withdraws Market Liquidity For First Time In Eight Months (ZeroHedge, Feb 19, 2013):

Since institutional memories are short, it is time to remind readers that it was the threat, and subsequent reality, of China overheating in the spring and summer of 2011 (when record high food prices sent the entire North African region in a state of coordinated revolt and gradually moved far east), when even the Great firewall of China could not block news of frequent break outs of localized violence from hungry and angry mobs, that halted and broke the spine of the great reflation trade then (and yes, 2013 has so far been a carbon copy replica of 2011 as we summarized in “It’s Deja Vu, All Over Again: This Time Is… Completely The Same“).

Furthermore, as only Zero Hedge forecast back in mid-2012, when ever other commentator was shouting over the rooftops that an RRR or interest rate cut out of Beijing was imminent, the PBOC would be the last to stimulate the market with monetary easing as it was well-aware that an entire developed world reflating at the same time would hit none other than China the fastest as the hot money flew straight into Shanghai. Just as it did in 2011. So instead China proceeded to engage in a series of daily reverse repos, or ultra-short term liquidity injections that prevented the advent of wholesale inflation: after all the Fed, the BOJ, the ECB and soon, the BOE, were doing it for them. And the last thing the country with the highest allotment of CPI, or book inflation, to food and energy can afford, is to let foreign central banks dictate its price level. After all, it has more than enough of its own.

Well, the Chinese New Year celebration is now over, the Year of the Snake is here, and those following the Shanghai Composite have lots to hiss about, as two out of two trading days have printed in the red. But a far bigger concern to not only those long the SHCOMP, but the “Great Reflation Trade – ver. 2013″, is that just as two years ago, China appears set to pull out first, as once again inflation rears its ugly head. And where the PBOC goes, everyone else grudgingly has to follow: after all without China there is no marginal growth driver to the world economy.

End result: China’s reverse repos, or liquidity providing operations, have ended after month of daily injections, and the first outright repo, or liquidity draining operation, just took place after eight months of dormancy.

From the WSJ:

Chinese authorities took a step to ease potential inflationary pressures Tuesday by using a key mechanism for the first time in eight months.

The move by the central bank to withdraw cash from the banking system is a reversal after months of pumping cash in. That cash flood was meant to reduce borrowing costs for businesses as the economy slowed last year—but recent data has shown growth picking up, along with the main determinants of inflation: housing and food prices.

Continue reading »

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Jan 28

- A Louisiana Grocery Store is Forced to Raise Milk Prices by State Regulators (Liberty Blitzkrieg, Jan 27, 2013):

You might have to read this post twice to make sure your eyes didn’t deceive you.  This article is actually completely different from my recent pieces on stealth inflation, but is even more infuriating.  In this case, a grocery store called Fresh Markets decided to sell milk at a bargain basement price as part of a promotion, yet the state has deemed the price “too low.” As a result, the chain is being forced to raise the price.  Yep, at a time when millions are struggling every day to make ends meet, this is what the state of Louisiana has decided it a priority that the cost of milk is higher for consumers in the state.  This is exactly what happens when bureaucrats exert to much influence in our daily lives.

From the Daily Caller: Continue reading »

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Nov 13

Farmland is a good investment … if you know the future.

If you had invested in a nice organic farm in Fukushima Pref. your investment is now worthless.

Considering Agenda 21 and the plans of Big Agribusiness you do not want to invest heavily in farmland at the wrong place.

Never put all your eggs in one basket (unless you exactly know the future).

Food, water, gold, silver and survival gear come first.

If you then can still afford a remote farm without going into debt, then farmland is indeed a good investment.


- The Smartest Investment Of The Decade (ZeroHedge, Nov 12, 2012):

Here’s something crazy to think about.

Roughly 200,000 people were born today. That’s net world population growth, births minus deaths.

Each one of them constitutes a new mouth to feed. And when they come of age, those 200,000 people will consume, conservatively, about 1,250 Calories per day. Collectively, that’s 91.25 billion Calories per year for the entire 200,000 people that were born today.

Where will they get that food from?

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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Oct 10

- Food is the New Oil and Land the New Gold: Lester Brown (Yahoo Finance, Oct 5, 2012):

The United Nations food agency reports that food prices are rising again, reaching 6-month highs and nearing levels not since 2008. Higher prices then spurred food riots in the Middle East and North Africa, which fueled the Arab Spring.

There’s no sign of widespread food riots now but eventually there could be, says Lester Brown, president and founder of the Earth Policy Institute and author of the new book “Full Planet, Empty Plates: The New Geopolitics of Food Scarcity.”

“The term ‘food unrest’ will become part of our daily vocabulary,” Brown tells The Daily Ticker.It reflects the imbalance between the supply of food and demand for food globally.

Continue reading »

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Oct 06

- World Food Prices Rise, Stay Close To Crisis Levels: FAO (Reuters, Oct 4, 2012):

World food prices rose in September and are seen remaining close to levels reached during the 2008 food crisis, the United Nations’ food agency said on Thursday, while cutting its forecast for global cereal output.

The worst drought in more than 50 years in the United States sent corn and soybean prices to record highs over the summer, and, coupled with drought in Russia and other Black Sea exporting countries, raised fears of a renewed crisis.

Continue 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 14

- Deep Fried Black Swan Lands As China Admits It Has A Food Inflation Problem, Releases Corn, Rice From Reserves (ZeroHedge, Aug 13, 2012):

Last week we wrote an article that to many was anathema: namely an explanation why everyone is deluding themselves in their expectation that the PBOC would ease, soft, hard, or just right landing notwithstanding. The reason? The threat that food inflation is about to read its ugly head which is “Why The Fate Of The Global Equity Rally May Rest In The Hands Of Soybeans.” This was merely a continuation of our observations from a month ago that as a result of the Black Swan being “deep fried” in 2012, that the threat of food inflation will keep key BRIC central banks in check for a long time. As of today the threat has become fact, because as China Daily reports “China will release corn and rice from state reserves to help tame inflation and reduce imports as the worst US drought in half a century pushes corn prices to global records, creating fears of a world food crisis…The release may prompt Chinese importers to cancel shipments in the near term and take some pressure off international corn prices, which set a new all-time high on Friday as the US government slashed its estimate of the size of the crop in the world’s top grain exporter.” Sure, as every other short-termist measure the world over, it may help with prices in the short-term, but will merely expose China, and thus everyone, to the threat of a much greater price spike in the future. Because just as the strategic petroleum reserve release did nothing to help gas prices, nor the short selling ban in the US and Europe did anything to help the underlying broken financial system, so this will merely force the local population to scramble and ration whatever food they can get asap, now that the government has admitted there is, indeed, a food inflationary problem.

Sure enough:

Bottom line – rationing is in full force, and given the continually declining state of the US corn crop, more will be needed,” said Christopher Narayanan, head of agricultural commodities research at Societe Generale. Continue reading »

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Jul 24

- UN Alarmed Over Sharp Rise in Grain Prices (VOA, July 21, 2012):

A 20-percent spike in maize and wheat prices in just the past three weeks is raising concerns with the United Nations Food and Agriculture Organization (FAO).

FAO economist Shukri Ahmed said the increase in price was sharp and sudden. He said that until May, experts were hoping for a huge increase in worldwide maize production.

Continue reading »

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Jul 22

- The Price Of Corn Hits A Record High As A Global Food Crisis Looms (The Economic Collapse, July 21, 2012):

Are you ready for the next major global food crisis?  The price of corn hit an all-time record high on Thursday.  So did the price of soybeans.  The price of corn is up about 50 percent since the middle of last month, and the price of wheat has risen by about 50 percent over the past five weeks.  On Thursday, corn for September delivery reached $8.166 per bushel, and many analysts believe that it could hit $10 a bushel before this crisis is over.  The worst drought in the United States in more than 50 years is projected to continue well into August, and more than 1,300 counties in the United States have been declared to be official natural disaster areas.  So how is this crisis going to affect the average person on the street?  Well, most Americans and most Europeans are going to notice their grocery bills go up significantly over the coming months.  That will not be pleasant.  But in other areas of the world this crisis could mean the difference between life and death for some people.  You see, half of all global corn exports come from the United States.  So what happens if the U.S. does not have any corn to export?  About a billion people around the world live on the edge of starvation, and today the Financial Times ran a front page story with the following headline: “World braced for new food crisis“.  Millions upon millions of families in poor countries are barely able to feed themselves right now.  So what happens if the price of the food that they buy goes up dramatically? Continue reading »

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Jul 13

- 1,000 Counties in 26 States Declared Disaster Areas (Bloomberg, July 11, 2012):
Continue reading »

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Jul 11

- Food Price Spike Dead Ahead: US Cuts Corn Crop Forecast By 12% As 56% Of America Is Under Drought Conditions (ZeroHedge, July 11, 2012):

Who knew the next black swan would be deep fried? The biggest piece of imminent food inflation news over the past months, coupled with what is shaping up to be another record hot summer (for the best tracking of real-time electricity consumption primarily for cooling news we recommend the following PJM RT tracker of power load), has been the collapse in the corn harvest due to the worst drought since 1988 as 56% of America is in drought conditions. Today, the US just added some burning oil to the popcorn by cutting the corn-crop forecast by 12% to 13 billion bushels on expectations of a 13.5 billion harvest. Then again, who needs corn, when you can have cake?

Bloomberg explains:

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