Posted on 09/17/2010 12:02:28 PM PDT by Razzz42
...Expect quite vociferous and rightly justifiable anger to soon arise from the livestock and poultry sectors aimed squarely at the idiotic ethanol boondoggle which has helped drive the price of a bushel of corn to a 2 year high with soybeans and wheat riding right alongside of the price spike. Some of this is demand based on increasing world populations plus reduced yields from this years crop but way too large a portion of the corn crop is being devoted to government subsidized ethanol production. We are fools burning our food in our damn gas tanks to salvage some guilt-ridden souls need to save the planet.
The result is going to be felt by every single consumer of food across the entire planet this is not hyperbole; it is a tragic fact. Wait until you hit the grocery store in a couple of months to buy a box of morning breakfast corn flakes. Then try washing that down with a high priced cup of coffee with high priced sugar. If you decide to skip the corn flakes and go with a bagel forget it; you will still deal with sticker shock. When you do realize what the hell is actually going on, send a thank you note to the idiots who have birthed this process with their QE and with the 30 to 1 leveraged trades now swamping our markets.
None of this is being lost on gold which is now moving relentlessly higher on the back of rising inflationary pressures that will seep into the economy and which cannot now be stopped...
(Excerpt) Read more at jsmineset.com ...
I have found this website to be a very useful source of information on the economy, gold, and silver.
http://goldismoney.info/forums/
Why the hell didn’t the poultry and livestock interests sock this ethanol crap back when the worldwide devastation could have been stopped?
Big Agribusiness is hardly a single entity. Where was Tyson’s Food and that gang three years ago? Don’t they have any influence?
I read that a byproduct of ethanol production is a corn mash that is used for feed. They may well have thought that the cost of feed would go down with the increase in ethanol production.
A reminder, there is no definitive definition of inflation or deflation in a banking system. So, it is important a person layouts their own defining observations in the onset of discussions. Any reasonable person will understand the views of the other when presented this way.
Many esoteric or invented terms exist like cost-push, price inflation or stagflation to name a few.
Anyways, I understand what you are saying and agree for the most part except on hyperinflation. Hyperinflation is a totally different animal that can arrive at anytime during any economic circumstance through a loss of confidence in a monetary system.
I give Norcini a lot of leeway as he is discussing market operations pertaining to inflation/deflation/hyperinflation. He should know, he makes a living off it.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.