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Originally posted by AlreadyGone
If any of you read my replys, you know I help manage a nationally known farm supply and feed store. We seel all manner of goods, hardware, fencing, and feeds for the full time/ part time farmer and hobby farmer... so called "self reliant" peoples.
I read this weekend, Saturday, October 16 on Reuters News Service, an article entitled "Two Fed officials favor aggressive easing options"... essentially, it stated that the fed was seriously considering pouring billions of dollars, and printing more, into the economy to kick strart inflation to fight deflation.
That had me concerned due to the loss in value of the American dollar over the last few weeks and the possibilty the US Fed may try to devalue our currency in order to pay down our debt.... aka Wemer Republic style circa 1920-1924.
With this fresh in my mind, I go into work today, Monday, and start the daily process of opening our store, counting tills, processing payroll, and setting the days tasks... one of which is price changes. Imagine my shock when whole kernel feed corn went up another dollar...from $8.29 to $9.29 per 50lb bag. What was more disturbing is it had already gone up $1.30 in the last 2 weeks. So, at the beginning of October...corn was going for $6.99 and as of Oct.18, it was $9.29.
Now I realize that there have been regional droughts, as well as international droughts...markets and commodities have gone up due to speculation, but a jump of almost 50% in price is disturbing. This was followed by the realization that all of our feeds, corns, and grains had increased anywhere from .50cents to $1.20 per bag item.
What this means is feed costs were going up. This means it costs more to feed livestock. Accordingly, I followed up on some recent conversations with some of my customers and found that prices at the beef markets were low....nobody can afford to feed their cattle so they are selling them...flooding the markets with beef...initially you will see some good buys on beef, but by next spring, there will be shortages and higher prices. Same with pork, chickens, eggs, and thusly...passed all the way up the commercial and grocery food chain.Higher grain costs mean higher prices on pasta, loaf breads, cereals, cake mixes, etc.
Mix market speculation with drought and shortages, throw in Fed induced inflation and ... presto... you have some very harsh economic times for everybody.
I just wanted to send this as a warning to all of our friends here at ATS. We knew this time was coming...and if you were smart...you have been preparing. But it is still a shock to see it actually happening.
My question to you and the catalyst for discussion is:
Now that we can see some of our fears coming to fruition, what extra steps will you take if any...and what advice do you have?
Originally posted by ghostsoldier
reply to post by AlreadyGone
Don't let another Hitler rise...
Turning right is not the way to get out of this problem.
This is all a scam, everything that is going on is engineered so we will be forced into a global/transnational currency and thus forever in debt to ever other state which is more successful than us who will be forced to bail us out. You would think they learned from the Euro about how bad transnational currencies are, I guess they really don’t care.
“In summary, we have record low grain inventories globally as we move into a new crop year. We have demand growing strongly. Which means that going forward even small crop failures are going to drive grain prices to record levels. As an investor, we continue to find these long term trends... very attractive.” Food shortfalls predicted: 2008 www.financialsense.com...
“Recently there have been increased calls for the development of a U.S. or international grain reserve to provide priority access to food supplies for Humanitarian needs. The National Grain and Feed Association (NGFA) and the North American Export Grain Association (NAEGA) strongly advise against this concept.. Stock reserves have a documented depressing effect on prices... and resulted in less aggressive market bidding for the grains.” July 22, 2008 letter to President Bush www.naega.org...
“Since 1981, until about a year or so ago we started rethinking it, we thought that we rich countries that produce a lot of food should sell it to poor countries and relieve them of the burden of producing their own food so that, thank goodness, they can leap right into the industrial era. It has not worked. It may have been good for some of my farmers in Arkansas but it has not worked. It was a mistake. It was a mistake that I was a party to, I am not pointing the finger at anybody, I did that. I have to live everyday with the consequences of the lost capacity to produce their rice crop in Haiti to feed those people.” Bill Clinton, March 2010
What Bill Clinton actually did was just an extension of the neoliberal scheme started by Reagan and Bush. The idea was to collapse the agricultural base of targeted nations by opening up their markets to corporate produced agribusiness food products that were subsidized by the US taxpayers. This allowed these businesses, “my farmers” [actually Cargill and Monsanto] as Clinton refers to them, to get in and sell cheap products that would undermine rice prices in Haiti to the point where local farmers could not afford to compete. Top that with forcing the Haitian government to pass laws requiring local farmers to buy seed and fertilizer from our companies at inflated rates, and you have a recipe for deliberately wiping out the entire indigenous agricultural base.
as hoped for by designers of NAFTA, has been 'modernisation' - a sharp decline in the share of agriculture and allied sectors in the workforce. From nearly 27% in 1991 it declined to slightly less than 15% in 2006, losing more than 2 million jobs. Again small and marginal farmers and agricultural labour bore the brunt, as evidenced by very sharp decline in the number of rural households. According to a study by Jose Romero and Alicia Puyana carried out for the federal government of Mexico, between 1992 and 2002, the number of agricultural households fell an astounding 75% - from 2.3 million to 575, 000.
So, when prices rise like this... Who, in the end, benefits?
When new money is created it does not appear magically in equal percentages in all people's bank accounts or under their mattresses. Therefore money spreads unevenly, and this process has varying effects on individuals, depending on whether they receive early or late access to the new money.
It is these losses of the groups that are the last to be reached by the variation in the value of money which ultimately constitute the source of the profits made by the bankers and the groups most closely connected with them.
In 1976 A typical American CEO earned 36 times as much as the average worker. By 2008 the average CEO pay increased to 369 times that of the average worker. timelines.ws...