That corn jump is amazing.
So it's because the Chinese are getting wealthier and eating more meat, eh? Oh, boy...PETA is gonna love this!
Posted on 10/12/2010 8:53:02 AM PDT by blam
Don't Blame Bernanke: Here's Who's REALLY To Blame For Surging Food Prices
Matt Lehrer
Oct. 12, 2010, 11:23 AM
Marshall Auerback claims today that Ben Bernanke and the expectation of more quantitative easing are causing the surge in world food prices.
He's wrong.
His argument centers on the flood of money due to the expectation of QE2 and the “financialisation” of commodities due to the Commodities Futures Modernization Act of 2000. He's correct that the game changed for commodities the minute the legislation passed -- ten years ago. That doesn't explain the surge this year but it does explain the increased volatility of the last decade.
The move up is helped by the expectation of more liquidity but supply and demand are much bigger factors.
Click here for the evidence >
[snip]
(Excerpt) Read more at businessinsider.com ...
It’s the price of coffee that pissed me off this weekend.
That corn jump is amazing.
So it's because the Chinese are getting wealthier and eating more meat, eh? Oh, boy...PETA is gonna love this!
But what is even more troubling is the dramatic spike in commodity prices that we have seen in 2010.
Wheat futures have surged 63 percent since the month of June. Wheat has recently been selling well above 7 dollars a bushel on the Chicago Board of Trade.
But wheat is far from alone. In his recent column entitled "An Inflationary Cocktail In The Making", Richard Benson listed many of the other commodities that have seen extraordinary price increases over the past year....
*Agricultural Raw Materials: 24%
*Industrial Inputs Index: 25%
*Metals Price Index: 26%
*Coffee: 45%
*Barley: 32%
*Oranges: 35%
*Beef: 23%
*Pork: 68%
*Salmon: 30%
*Sugar: 24%
*Wool: 20%
*Cotton: 40%
*Palm Oil: 26%
*Hides: 25%
*Rubber: 62%
*Iron Ore: 103%
Now, as those price increases enter the chain of production do you think that there is any chance that they will not cause inflation?
End the Fed and the shenanigans cease almost immediately. Prices would begin to normalize under a truly free market - one that is allowed to move freely without these injections and interventions...
Ever wonder why the Fed claims to be scared of Deflation?
All these headlines are just from TODAY and there are more. And there will be more tomorrow. It is happening NOW!! Most people do not see it. It is going down NOW.
1. US Cities Face Half a Trillion Dollars of Pension Deficits
2. What O'Malley, Ehrlich say about fixing pensions
3. Record retirements stress New Jersey state pension system
4. The First 10 City Pensions That Will Run Out Of Money
5. Municipal Pension Tabs Average $15,000 Per Household
6. Bloomberg Administration Takes on Pensions
7. UK reported to have the biggest pension deficit in Europe
8. Ventura city workers protest calls to pay more for rising retirement costs
“Soylent Green is PEOPLE!”
“The End Of Cheap Food”
By John James
04 August,2007
Countercurrents.org
http://www.countercurrents.org/james040807.htm
“Why Rogers, Soros, Faber invest in commodities”
Published on: February 22, 2010 at 09:10
http://www.commodityonline.com/news/Why-Rogers-Soros-Faber-invest-in-commodities-25834-3-1.html
Big government, here, there, everywhere, is the cause of our miseries.
Add to the list oil prices, which are up about $10 a barrel in the past month, and inflation is definitely going to be a problem. Of course, it’s all Bush’s fault.
FUBO
Mike
Informative and very sobering links. Thank you.
That assumes you can stay in the country to do it. I've had to travel to San Diego to keep my current employment while my family sits at home in Pocatello. There simply aren't decent paying jobs around Pokey in my field. I've had the ability to do my contracts from my home office from 2003 to 2008. All of that work collapsed when Obama took office.
bump
The doubling of the cost of butter over what I paid for it the last time got to me this past weekend.
About everything is going up in price, but some items are leaping upwards in price increases.
Same thing happened during Carter’s term in office.
Remember in November, and take out the trash.
making me jealous here. I only have a 30 x 50 raised bed garden (i live on a “wetland” and can’t use my backyard per the DEC)
“He’s correct that the game changed for commodities...”
Stop saying “game change.” That’s enough already.
I am sure the foreign demand for U.S produced food products is affected by crop failures in foreign countries, but I think the falling value of the dollar has made our domestic food products more competitive.
And the “traders” are also a factor. They realize that the dollar is slipping in value and see physical commodities as a method of holding value. That speculation is driving up the prices, although I do not see the price increases listed in the article on the shelf in the grocery stores yet.
Will it be an inflationary depression or a deflationary depression or one then the other? Speculation can create a false bubble for a while, but eventually they fail.
“Ever wonder why the Fed claims to be scared of Deflation?”
I don’t wonder. The entire reason for the Fed’s existence (as you can gather from its somewhat more honest original justification) is to inflate currency so that: 1) people will accept the money government prints for itself to buy things, and 2) well-connected business interests don’t go bankrupt.
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