U.S. FOOD INFLATION CRISIS – Are You PREPARED for FOOD RIOTS & More Than DOUBLE FOOD PRICES
Investmentwatchblog.com
April 24th, 2014
Just a month ago we warned that food inflation was on its way. Today we got the first confirmation that problems are on their way. While headline data washes away the nuance of what eating, sleeping, energy-using human-beings are paying month-in and month-out, the fact, as WSJ reports, that beef prices surged by almost 5% in February — the biggest change since Nov 2003 – means pinching consumers and companies pocketbooks that are still grappling with a sluggish economic recovery. “Things are definitely more expensive,” exclaimed on mother of three, “I can’t believe how much milk is. Chicken is crazy right now, and beef — I paid $5 a pound for beef!” Just don’t tell the Fed!
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%…
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.
A professor at the W. P. Carey School of Business at Arizona State University named Timothy Richards has calculated what the drought in California is going to do to produce prices at our supermarkets in the near future. His projections are quite sobering…
A virus known as porcine epidemic diarrhea has pushed pork prices up to new all-time record highs. It has already spread to 27 states, and as I mentioned above, it has already killed up to 6 million pigs. It is being projected that U.S. pork production will decline by about 7 percent this year as a result, and Americans could end up paying up to 20 percent more for pork by the end of the year.
The price of beef has also soared to a brand new all-time record high. Due to the drought that never seems to let up in the western half of the country, the total size of the U.S. cattle herd has been declining for seven years in a row, and it is now the smallest that is has been since 1951. grocery store
food shopping supermarket breakfast bacon “british bacon” meat vegetarian usd dollar markets virus hog supply demand restaurant u.s. “united states” usa america fear budget economy cafe menu dinner “low price” “orange juice” “organic food” coffee “brazil coffee” orange “food bank” family mother 2014 prepare survival “food storage” collapse “end times” war “bulk food” “freeze dried food” life “agenda nwo” poverty walmart ebt riots ebt card civil war shtf demcad prepper preper bugout bag new world order illuminati salary minimum wage alex jones rant gerald celente coast to coast am david icke lindsey williams global currency reset When the federal EBT food stamp system suffered a critical failure on Saturday, local retailers were disconnected from the federal food stamp database that keeps track of how much credit is left on each individual EBT card. Seizing the opportunity provided by the glitch, EBT card holders in Louisiana ransacked their local Wal-Mart stores, stuffing their shopping carts full of groceries and “paying” for them with near-empty EBT cards that essentially had unlimited account balances because all accounting was offline.
When the EBT database came back online and card purchase limits were suddenly restored, EBT card holders abandoned their full carts and just walked away, probably miffed that they missed out on participating in the felony theft of groceries.
