We have already heard about California being broke, that the state intends to delay tax refunds and Welfare payments. Even to the point of sending
IOU's for the tax returns.
There may be food riots in Southern California this Summer. Why might there be food riots in southern California this summer?
The Famine of 2009
Read every word in the above link. The author maintains that a variety of hassles, mostly financial, will reduce the ability of farmers to plant their
crops this spring.
Here’s another potential whammy on our food supply.
World Crops Threatened by Strengthening La Nina
Not to mention the Economic mess the entire world is in. What about this author's take on the situation:
“What will happen when this temporary dollar carry trade reverses? When? The dollar will weaken rapidly. When? The de-leveraging of the
"pyramid of leverage" will take from two to six months but not likely more than that.”
“Consider the example of your local grocery store and its fire sale. Across the entire retail food sector you will see sales as the recession
deepens. The question is, what is the new equilibrium price between the price your grocer pays for new goods and how much he can charge for them?
Clearly he cannot stay in business for long if the input costs for his goods remain higher than the price he can charge his customers. Input costs
must fall as well to match the new lower end user sales prices that are meeting demand in the slower economy or he will not be able to restock the
next cycle of inventory and sell it at a profit. Unfortunately, with oil still 400% above 2001 prices due to the weak dollar, producer prices are
still high and rising. If your grocer does not have a lot of cash on hand to wait out a decline in input prices, he will have to go out of business
because he cannot sell every unit of inventory at a loss for long. If the dollar remains weak, as we expect it to, input prices will not fall much if
at all; many grocers will have to go out of business; with less competition for customers the survivors will have sufficient pricing power to charge
the prices they need to charge to stay in business. What happens if half of the grocers in your area wind up going out of business? As floor space per
capita shrinks by 50%, stores that survive get to charge what they need to sell at a profit over input costs. A new, higher equilibrium price for food
at a smaller number of grocery stores will result as the number of grocery stores in your area declines. Those prices may be higher than they charge
today. As a result your grocer's customers' buying behavior will change. Customers will buy less and they will substitute lower quality products.”
Confusion reigns: A crisis-driven global rush to dollar liquidity is not
Deflation
Tom Chittum wrote:
The destruction of the American military in Iraq and Afghanistan will pave the way for its replacement by privatized military contractors formerly
known as warlords. Citizen soldiers might balk at massive ethnic cleansing operations in California for example, but warlords won’t. Picture armies
of Blackwater mercs composed of mostly non-Americans recruited from all points of the globe. They will gladly slaughter everything in their path
including any remaining American military units who might oppose them. The LBC (London Banking Cartel) must first ignite a civil war in America and
then ultimately ensure the that the secessionist win after their hired warlords and mercenary hordes have stomped the new mini states into malleable
mush which may or may not be glued together in some sort of North American Confederation with “Ameros” for money and some multi-colored rag for a
flag.
I basically think it will work. I think the coming tribal/civil war in America will be roughly proportional to the severity of the economic collapse
that sets it off. Meanwhile, while you are waiting for Osama bin Subcontractor to nuke us and waiting for your starving neighbors to batter your door
down, keep an eye on California. It’s the canary in the coal mine. When it croaks the rest of America will follow sooner or later.
Is he right?
Typos and LBC clarification
[edit on 1/19/09 by redhatty]
[edit on 1/19/09 by redhatty]