The world faces an inflationary time bomb as shortages of food threaten to push prices to fresh all-time highs.
A variety of freakish weather conditions across the world has sent the price of staples including wheat, pork, rice, orange juice, coffee, cocoa and tea to fresh highs in recent weeks. Yesterday's decision by the Russian government to ban the export of wheat to protect home consumers saw grain prices jump 8 per cent on the day, on what was already a two-year high. Meanwhile, the burgeoning demand for foodstuffs and raw material growth in the resurgent economies of China and India has also driven oil, copper and other industrial commodities higher.
Taken together it suggests that Western nations will be hit by a sharp inflationary spike next year, as the price of bread, beer, petrol and many other everyday items climbs higher again. Given the sluggish prospects for growth in Western economies it threatens a return to "stagflation" – stagnant growth coupled with high inflation. The Governor of the Bank of England, Mervyn King, has warned that inflation will stay above the official target of 2 per cent for "much of next year". At least for a time it could spike much higher as global commodity prices surge once again, exacerbating the VAT rise in January.
In developing and emerging economies, however, the challenge is in some cases a matter of life and death. In these countries food represents a much higher proportion of household budgets than in the West, and they are less able to withstand such shocks. Freakish weather, as in Pakistan now, can also lead to immediate demands for extra food supplies.
Fears that the population may simply not have enough to eat because of the drought in Russia, the Ukraine and Kazakhstan, one of the world's great "bread baskets", prompted the Russian Prime Minister, Vladimir Putin, to sign a decree yesterday prohibiting the export of wheat, barley, rye, corn and flour until the end of the year. "We must prevent domestic prices from rising, preserve cattle herds and build up reserves," he said. Mr Putin added that ending shipments would be "appropriate" to restrain domestic food prices, which rose 19 per cent last week alone.
Conversely, flood conditions in Canada, another major grower, have also reduced supply. World wheat prices are up 92 per cent since early June. Worse could follow: the Russian weather has also threatened the next sowing season, and has harmed other crops such as sugar beet, potatoes and corn.
I don't know if that will be much of a worry soon, as most of the population will have to return to farming. The problem then will of course be land, if you can get access to it, you'll be fine, if you can't, you'll try to fight for it.
ReplyDeleteIn the end it's all about the basics...Food, water, shelter, safety.
ReplyDeleteWhat's kinda cool is even those who thought they were above it will be touched...Only those that can float above the masses will get away scot free...I see it already with those who USED to make $200k now making $50k soon to make even less...Realtors, appraisers, middle management bankers, strippers, club owners, bartenders etc etc...Basically all the non essential pretentious people.
In the end it's about who can adapt the fastest...Sure prepping helps but so does being able to live off freshly cooked spicy red beans and rice with soy meat as opposed to high end veggies and expensive hormone laden meat.
America will continue but until the average American is willing to stop eating crap and trying to maintain a non-essential, high polluting, high resource using lifestyle we're screwed...Lets be honest it's too late to turn the ship.
Food riots? Job riots? Class warfare riots? Race riots?...It might happen in some parts of America...Hopefully some people will awake...Pray for the best...Prep for the worse.
11:16 I would semi-agree with you but just everything seems to be either semi-connected or so f*cked up it seems almost planned.
ReplyDeleteAnything that the government is touching is approaching madness status.
Think about it if in 2004 I would have told you of the things that have happened since then would you have laughed at me?...Billion dollar ponzis?...SS running in the red for the first time...professionals not being to get a job...another semi war brewing...the gulf of mexico polluted for many years...23 trillion dollars in debt...96% of mortgages owed to the goverment...collapse of not only the RE market but any industry having to do with new housing such as furniture stores, electronics, carpeting, paint, hardware, plumbing, concrete, roofers, framers etc etc...cop/firemen/teacher lay offs to go along with closing of YMCAs, libraries, parks, city pools...one in about 5 homes technically in either foreclosure or late just procedures not implememnted yet...lets not even go to what that so-call constitutional scholar obama has done to civil rights...the rise in gas/food prices since then...The total drop of the Baltic Index...40 million plus on food stamps but the reason I KNOW we're in something maybe not tangible but that I can still feel it...The real rich are leaving.
When you see the REAL RICH moving out...After sucking the life out of something then you know something evil comes this way.
I'm not talking ghetto rich or new rich...I'm talking the people that ran this place to the ground, pulling stakes and moving their money out THEN you know something is going on that we Joey Bagadoughnuts don't.
That and I was in Mexico during their peso collapse in the 80's...Makes me kinda nervous...Americans always seem so surprise when bad things happen...Instead of looking/reading/prepping most just whistle past the graveyard until reality smacks em.
11.43
ReplyDeletegiven the facts you outline above it seems the establishment of this web site warning people of coming changes and depression was very timely.
The trolls ,despite this reality ,regularly appear here posting comments that everything is fine and the recovery is still surging full steam ahead all powered by numbers printed on $ paper ,creating fake profits in a jobless recovery of the Great Ponzi.
So when IS this collapse coming? The articles said end of July, beginning of August, and those times are passing with nothing really changing.
ReplyDeleteWhile I agree things are bad, I don't know that they will reach crisis levels.
Um Um Um, Barrack Husein Obama
ReplyDeleteUm Um Um, Barrack Husein Obama
Um Um Um, Barrack Husein Obama
It's all good, no worry.
Um Um Um, Barrack Husein Obama
Um Um Um, Barrack Husein Obama
Um Um Um, Barrack Husein Obama
Drink your Kool-Aid, make sure you use corn syrup instead of sugar.
I agree with 9:50. Without a doubt, all the meat loving people will also have to adapt either to eating less meat, or eating soy or other forms of protein. I know some people like Alex Jones say that soy isn't good for you (I like organic soy) but meat probably has FAR more hormones in it than soy. It's no wonder girls now hit puberty at such a young age. This affects boys and men as well. Unless you'll be able to hunt your own meat (and with the entire population doing that, there wouldn't be much left), better get used to not eating meat anymore. In the end, it will be better for you anyway. Why do you think the Japanese are so healthy even though they eat lots of MSG? They eat very little meat (or at least used to), and they eat mostly fish instead of red meat.
ReplyDeleteOrganic soy is shit. Soy was one of the first GM foods. Enjoy your organic frankenfood.
ReplyDeleteEat wild game and grass fed beef if you want wholesome food.
Here is an article on SOY. It should NEVER be ingested!
ReplyDeleteHere
Hmmmm good call Ea BUT soy was just an example...Although I may give it up if I see it's that bad.
ReplyDeleteI like meat and if I lived in a rural area I'd love to hunt but I don't so that's why I didn't pop up with the fish/hunt aspect.
The point being is we Americans eat too much red meat...The good stuff is expensive...The cheap stuff is filler and full of hormones...Haven't verified but I bet Americans are tops in heart disease and colon cancer partly due to all the meat.
Lets not even get all holistic and start talking amount that gets stuck in our lower intestines...But that @#$% is disgusting...And the average American carries 5-12 lbs.
Fish/seafood is great but now with all the toxins especially mercury?
That leaves poultry/pork which if you ever see videos how it's grown will disturb you...I have no qualms eating animals but them being raised in filth and basically tortured is not my thing.
That leaves very little to pick from...Beans and legumes are ok...But I figure tofu and soy would be a healthier choice...I know I know hippie food...But as long as it's cheap/healthy and can be made semi-tasty who cares?
Man needs protein...So we have to figure out something that has the same qualities...If anyone has a real suggestion or recommendation let's hear it...I'll try it.
The Japanese are not healthy. An average sized American male towers above them. They are barely over 5' on average over there. Also look at their teeth, and in general their musculature.
ReplyDeleteThey Japanese do eat plenty of meat though depending on what type of restaurant you're talking about. Pork is very popular, and most ramen has a lot of it in it. They don't just eat sushi over there if that is what you think.