Posted on 12/27/2009 3:28:50 PM PST by blam
Global Food Crisis 2010 Means Financial Armageddon
Commodities / Food Crisis
Dec 25, 2009 - 04:12 PM
By: Eric deCarbonnel
If you read any economic, financial, or political analysis for 2010 that doesn’t mention the food shortage looming next year, throw it in the trash, as it is worthless. There is overwhelming, undeniable evidence that the world will run out of food next year. When this happens, the resulting triple digit food inflation will lead panicking central banks around the world to dump their foreign reserves to appreciate their currencies and lower the cost of food imports, causing the collapse of the dollar, the treasury market, derivative markets, and the global financial system. The US will experience economic disintegration.
The 2010 Food Crisis Means Financial Armageddon
Over the last two years, the world has faced a series of unprecedented financial crises: the collapse of the housing market, the freezing of the credit markets, the failure of Wall Street brokerage firms (Bear Stearns/Lehman Brothers), the failure of Freddie Mac and Fannie Mae, the failure of AIG, Iceland’s economic collapse, the bankruptcy of the major auto manufacturers (General Motors, Ford, and Chrysler), etc…
In the face of all these challenges, the demise of the dollar, derivative markets, and the modern international system of credit has been repeatedly forecasted and feared.
However, all these doomsday scenarios have so far been proved false, and, despite tremendous chaos and losses, the global financial system has held together.
The 2010 Food Crisis is different. It is THE CRISIS. The one that makes all doomsday scenarios come true. The government bailouts and central bank interventions, which have held the financial world together during the last two years, will be powerless to prevent the 2010 Food Crisis from bringing the global financial system to its knees.
Financial crisis will kick into high gear
So far the crisis has been driven by the slow and steady increase in defaults on mortgages and other loans. This is about to change. What will drive the financial crisis in 2010 will be panic about food supplies and the dollar’s plunging value. Things will start moving fast.
Dynamics Behind 2010 Food Crisis
Early in 2009, the supply and demand in agricultural markets went badly out of balance. The world experienced a catastrophic fall in food production as a result of the financial crisis (low commodity prices and lack of credit) and adverse weather on a global scale. Meanwhile, China and other Asian exporters, in an effort to preserve their economic growth, were unleashing domestic consumption long constrained by inflation fears, and demand for raw materials, especially food staples, exploded as Chinese consumers worked their way towards American-style overconsumption, prodded on by a flood of cheap credit and easy loans from the government.
Normally food prices should have already shot higher months ago, leading to lower food consumption and bringing the global food supply/demand situation back into balance.
This never happened because the United States Department of Agriculture (USDA), instead of adjusting production estimates down to reflect decreased production, adjusted estimates upwards to match increasing demand from china.
In this way, the USDA has brought supply and demand back into balance (on paper) and temporarily delayed a rise in food prices by ensuring a catastrophe in 2010.
[snip]
If they do, it’s because US farmers insist on feeding corn to cows. McDonalds wants low fat beef. This means grass fed. Grass fed beef in the US is almost impossible to find. Usually only in high end stores like Whole Foods. Go figure.
So, I am MORE inclined to eat at McDonalds as a result!
P4L
Didn’t you stock up on weapons and ammo, too?
Not really. I have a rifle and a pistol, thats about it.
I read estimates that when the price of gas gets too high, about $11 a gallon, the entire world economy will implode because it will no longer be feasable to bring goods to market. I think that number is lower. Of course, OPEC manipulates the price and it is in their best interest to keep the world economy functioning, so any epic increase in world oil prices will be due to a large scale disaster or war in the Mid East, or some event that is beyond the control of the heathen OPEC dudes.
"...All US grain is effectively transported on 2 rail lines..."
I did not know this. You just gave the terrorists a heads up, you ass!
They already know. They effectively run the Federal government now, ding-dong.
Unlike the majority of soft and ignorant Americans, the Islamofederalists study their enemy's weaknesses and make logistical plans to leverage them.
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