“Any Crisis Can Bring About Immediate Food Shortages” – Food Is A Weapon In The Hands Of The Powerful

Tuesday, June 13, 2017
By Paul Martin

Jeremiah Johnson
June 13th, 2017
SHTFplan.com

The U.S. has experienced some record droughts for the past several years, and now that the summer has begun, everyone is speculating on this year’s crop forecasts. The Midwest has been struck by severe flooding and rainfall levels that are far above average, complicating startups of this year’s crops. Another dry summer could push the prices up even higher, with an ever-growing demand that always exceeds the available supplies.

One of the problems in the overall food industry in the U.S. is not brought on by weather patterns and rainfall shortages. The problem is inflation, the rise in the prices due to higher demand, lower supply, and less purchasing power with the fiat dollar; that problem is coupled with (and followed by) deflation, where the grocery industry is forced to lower prices to capture a declining consumer base, but to its own cost.

Wal-Mart’s sales of groceries and food supplies now account for more than 50% of its overall revenues. That is a staggering fact, and it also outlines the way a large retailer not originally intending to enter the arena of food sales has staked out a claim for itself. This claim has not been without its effects, however, as what Wal-Mart earns detracts from supermarkets and other concerns whose main bread-and-butter (no pun intended) is income from food sales.

The largest supermarket chain in the U.S. is the Kroger Company, and along with Wal-Mart taking a bite out of its business comes an increase in retail stores such as the Dollar Trees, Dollar General Stores, and others that are rapidly expanding their food sales and cutting a big slice out of that market where traditional grocery concerns have dominated in the past. Foreign competitors, such as the German firms Aldi’s and Lidl are also posing a challenge to domestic supermarket concerns.

Eight years of Obamanomics has severely crippled the U.S. manufacturing base, and the food industry has not been immune to that destruction by a longshot. The dramatic rise in entitlements expanded by Obama has also caused the prices of consumer goods to shoot up drastically: more handouts by the government places more money in the hands of the entitlement-society…at taxpayer expense. This devalues the fiat currency even further and pushes up the prices of food.

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