food inflation is smashing down on the world’s populations
as prices rise precipitously in the face of increasing shortages
and absurd monetary policies. Prices are rising everywhere. It is
not millions but billions of people who must tighten their belts
because they have no choice but to eat less. Billions of people on
our planet have no discretionary funds so they just cannot afford
the increased prices. They have to get by with less to eat. They
have no choice.
can get so bad that people will not be able to buy foods at any
price because they simply will not be available because they have
been bought up by someone else. I am not talking about your
neighbor here who just happened to beat you to the supermarket
this morning. Imagine if China pulls out a $100 billion out of
its almost bottomless pockets and purchases grain to feed its
billions? Why wouldn't they, after all, spend increasingly
worthless paper on a mountain of food?
you will see that this is a real threat because of the drought
that is going on there. Other governments are already
stockpiling food staples in an attempt to contain panic buying,
inflation and social unrest. There is nothing pretty about this
quickly evolving food catastrophe and with each week the story
only becomes gloomier.
price of wheat is up 78.13 percent over
the past 12 months and still going higher.
we turn we see dramatic climate events taking their toll on crops.
The cold weather experienced across much of the U.S. in early
February made its way deep into Mexico and early reports estimate 80-100
percent crop losses, which are having an immediate impact on
prices in U.S. grocery stores with more volatility to come.
As a result, prices on cucumbers, zucchini, peppers, tomatoes and
asparagus are set to explode in the states if in fact there will
be much of any of these vegetables available at all.
in China’s far western Xinjiang flattened or damaged
about 100,000 homes, and more than 15,000 head of livestock
were killed by the cold front that set in on the 16th of January.
rainfall or snow this winter has crippled China’s major
agricultural regions, leaving many of them parched. Crop
production has fallen sharply as the worst drought in six decades
shows no sign of letting up.” A severe drought has persisted in
China’s northern territories for several months. In Hebei
province, the farmers haven’t seen any rain for five months.
What is going on in China has global breadbasket implications. So
dire is the situation becoming that, “If the weather turns
warmer and there is still no rain, then we will not be talking
about lower agricultural production, but rather zero
production, because the seedlings will all be dead,” reported
one Chinese official. Wheat prices in Chicago jumped nearly two
percent on the 8th of February when the United Nations’ food
agency issued a rare alert that China’s crop was in trouble.
snowfall pounded South
Korea’s east coast last Saturday when waist-deep snow
stranded hundreds of motorists on highways and destroyed dozens of
houses. The roofs of dozens of houses, livestock sheds, vinyl
greenhouses—even a bowling alley—collapsed under the weight of
the snow. According to the Gangwon Regional Meteorological
Administration, the two-day snowfall in the area reached 43 inches
(110 cm) in Samcheok, 39 inches (100.1 cm) in Donghae, 22 inches
(56.3 cm) in Daegwallyeong mountain pass, and 17 inches (42.8 cm)
Korea was hit it was Vietnam. After enduring a freezing cold with
temperatures in mountainous areas dropping to – 4° C, northern Vietnam
is undergoing another fresh cold snap. The record low temperature
this year had frozen over 7,000 buffaloes and cows to death in
more than 12 northern mountainous provinces, said Deputy Head of
the Livestock Breeding Department Nguyen Thanh Son.
location has been changing week by week but its one place on the
planet after another being hit with agriculturally destructive
weather patterns. Global food production and supply are being
beaten down just as financial and monetary inflation also takes
Causes of Price Increases
weather in key agricultural markets around the world has savaged
the global grain crop, meaning worldwide supplies can’t help but
be squeezed. Australia, for instance, is experiencing
additional flooding in areas that were already battered by the
torrential rains of November, December and January. And as if the
supply-related increase in agricultural commodities wasn’t
enough, there’s also the U.S. dollar—and the so-called “race
to the bottom”—to contend with. Make no mistake: The
endless devaluations in the greenback are having a
worldwide impact on agricultural commodity prices.
Since commodities are priced in dollars, these devaluations
translate into higher prices for grains and other food-related
commodities,” writes Jack
Federal Reserve is printing money almost limitlessly now to extend
the life of the United States government that is addicted to
increasing debt and deficits. They are injecting money (debt) at a
furious pace producing stacks of fine quality paper with colored
ink. This blatant act of self-preservation is striking hard at the
lower and middle classes around the world who have to pay higher
and higher prices for their food, which on international markets
is denominated in dollars. The day of reckoning for the dollar
inches closer every day, as the Fed issues more Treasuries and
floods the market with more devalued paper. Inevitably, this will
cause prices to rise faster and faster as the value of U.S.
currency drops further, pushing food prices up and up the side of
a steep slope. The world is paying for American debt in terms of
high food and energy prices.
the present tragedy is going to be compounded by too much money
chasing the availability of food. Even in America,
if you are not financially independent, the odds are good that
someday you could be waiting
in line to feed yourself and your family. It’s a mistake,
even at this early point, to take this delicious-looking bread for
are not allowing yet onto our collective radar screens exactly
what we are facing in the months and years ahead. The world is
still looking normal for the “haves” but those who have less
feel the avalanche of climbing food prices. We are only at the
very beginning of a crisis that has “going to get much worse”
written all over it.
Sircus Ac., OMD
Director International Medical Veritas