Posted on 11/04/2010 9:51:15 AM PDT by Razzz42
Translation – the meltdown in the US Dollar, thanks to the Fed’s lunacy, is going to strongly impact disposable income as consumers will be forced to pay higher prices for the essentials of food and energy. Fed governor Hoenig, will be the one vindicated by history as we observe firsthand the legacy of nearly unlimited money printing.
(Excerpt) Read more at jsmineset.com ...
Retirees paying higher prices with devalued dollars on fixed incomes being told their inflation indexed checks are keeping up with living costs should be the first to riot.
My bagel guy told me this morning that they’re going up 10 cents. It’s just the beginning.
The more money you take away from people, the more control you have over them. Just look at the old USSR. Hopefully, the past election will stop the dictatorship of this country.
This is just the start! Wait until we have to import fruits and vedatables from Chile this winter. The Dollar has fallen in value against the Peso (Chile) by OVER 20% in the last 6 months!
I grow my own ... haven’t noticed any increase in price.
Don’t worry, I am quite confident that former advisor to Robert Mugabe, Paul Krugman will have an answer to fix our problems.
bump
you know what this means......
Oddly QE2 works only if there is wage inflation and the corresponding real estate inflation that let’s all those underwater mortgages float in value.
If there is no wage inflation and no real estate inflation then there is only commodity inflation.
I grow my own ... haven’t noticed any increase in price.
So do I, but I used to buy the seed, and it has went up. Corn seed is outrageous! Now I will start from seed, my own...
What I'm wondering is why you thought a blog was worth posting under "News," and why you only posted two sentences of a blog.
Just make sure you’re not starting from “hybrid” seed.
You got that right. I planted some seeds to get those special fat round cherry tomatoes, I think the seeds were genetically engineered to produce 5 tomatoes then have the plant die off.
Mike
From
http://jsmineset.com/#
Jim Sinclair’s Commentary:
Don’t celebrate the midterm elections. On one side you have the Banksters and on the other side the Socialists.
No compromise within that situation is worth a tinker’s damn.
And only as long as the consumer has money to buy the commodities in question. (cross elasticity of demand) If they are produced within the country there is no cost push because of currency exchange. Only on the imported products, and those only if our currency is deflating against the specific foreign currency.
Solution, produce our own. Slash the Federal government cost, regulation and presence in our lives.
There are some very ominous signs in agribusiness right now.
1) The US beef herd is at the lowest level since the Jimmy Carter disaster in 1973, where beef was very expensive, and there were some shortages. The US swine herd is at the lowest level since it has been measured. Much of this is attributed to very high prices for fodder. Though chicken is more flexible, it can only take off a limited amount of pressure.
2) Many farmers are unable to buy fodder for their animals right now, so are dipping into their winter stores, hoping the price will drop. Since that is highly unlikely, they will have to slaughter even more of their herds, being unable to feed them. So meat prices may be moderate for a while, then skyrocket.
3) Congress has yet to repeal the overly ambitious demand for more corn based ethanol to be added to gasoline by big incremental jumps. Unless this is stopped, the price of corn, already up by 54% over a year ago, is going to go through the roof. To make matters worse, it is very reliant on petroleum based fertilizer, so if the price of crude oil jumps, it will add even more pressure.
4) There have been some serious crop failures in Brazil, Europe and Russia, that are putting strong pressure on the price of sugar and other crops. Other nations, seeing this pressure, are starting to limit food exports, shifting demand to countries still exporting, including the US, which is seeing a sharp upturn in exports.
5) Food retailers have been taking a big hit of late by refusing to raise prices in their very competitive market. But they may no longer have a choice but to raise prices.
6) The worst scenario is that if there is a flight from US Treasuries into commodities, based on a loss of confidence. Our food supply is a “push” supply, so producers only provide as much as retailers can buy. But if speculators enter the commodities markets, hyperinflation may result from the double whammy of artificial shortages at the same time as there is strong inflation.
Carter was Governor of Georgia in 73. You gotta explain that one?
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