The Hunger Games: How Gold and Silver Will Save You From Soaring Food Prices
By JS Kim
GoldSeek.com
Thursday, 29 March 2012
In post World War II Germany, the MONTHLY inflation rate reached 29,500%. Though only a generation ago, with Central Banks destroying global currencies at a pace today not seen since the Reichesbank, the memories of horrific hardships imposed upon people by Central Bankers seems to have already been erased from the general populace’s memories. Due to the Reichesbank’s excessive printing of German marks in post WWII, Germany citizens were forced to load money into a wheelbarrow and roll it down to the store just to buy a loaf of bread, such was the worthlessness of German marks. This scenario, as incredible as it seems, may very well happen again in the future. This is precisely why people need to buy physical gold and physical silver if they don’t want to end up living in poverty. At SmartKnowledgeU, we have always stressed that unlike the criminal banksters tell you (and you should never ever listen to their propaganda advice designed to bankrupt you), gold and silver is not an investment, but is simply REAL MONEY with no counterparty risk that can not be counterfeited as simply as can paper fiat currencies.
Under massive creation of new paper currencies, a strong inflation environment will be created, perhaps even hyperinflation down the road, and all paper currencies, since they are all tied to one another, loss great percentages of purchasing power, and thus lose value, the longer the time period in which you save them. With the insane monetary expansion policies of the US Federal Reserve and the European Central Bank over the past few years, often even the amount of money we used to buy goods just a few months ago loses value. Inflation also drives up food prices as even non-food inflation inputs have an important effect on the supply and cost of food. As the cost of inputs rises for farmers, output, or food prices, will also rise as farmers will pass on the costs of increasing inputs in the form of rising food prices to consumers. The latest release from The Bureau of Labor Statistics, the Consumer Price Index for All Urban Consumers (CPI-U) for February 2012 was 227.663, led by increases in energy and food. Consumer prices rose 0.4% and in annual terms the US CPI increased by 2.9% (unadjusted) in the past twelve months. The increase in the February consumer price index was mostly driven by higher prices of energy: the energy index sharply rose 3.2%. The gasoline index rose 6.0%, its largest increase since December 2010 as you will see in the table 1 below.
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