Food Inflation & Shortages

Discussion in 'Economics' started by Trendytrader, Mar 13, 2008.

  1. Guys and girls, I'm concerned about the growing evidence and reports of a global issue with a shortage of food starting to develop.

    This year the US will import wheat for the first time ever. Wheat inventories here are at a 5 decade low. Feedstock prices are so high that farmers are now selling their beef as they can't afford to feed them and get a decent return. Have you noticed the cost of meat in the supermarket?

    India has the lowest inventory of rice in 25 years.

    Pakistan is the same with not enough wheat to feed it's population...China isn't much better off.

    Then add in the cost of food commodities and no 3rd world country can afford them.

    My summary is we have a serious situation brewing of global food shortages that will impact the 3rd world hardest...when people starve revolutions happen. Interesting times a head.

    To think if the US wasn't subsidizing Midwest farmers to plant soybeans for ethanol we wouldn't be short of wheat. It's crazy when we could import the sugar cane ethanol from Brazil cheaper than we can produce it here.
  2. Daal


    whats the news?this boom and bust cycle in productive capacity has been happening every 20 years or so for centuries, just hedge or 'invest' as a hedge and move on
  3. I posted something like this.

    We use 28% of our food supply now in 08 as fuel/gasoline inputs.

    Yes, meat eating habits worldwide are not helpful. But this first point is key.

    Just remember - we aren't the only ones using food as fuel.

    And now, more people than ever in even developing countries are driving these SUVs/heavy-cars the US took such a love to, giving more incentive to burn our food supply away...

    ... How foolish the masses can be.
  4. maxpi


    Foolish masses? Is every individual expected to think of the big picture before every decision?
  5. The US would have a much worse inflation problem if the rest of the world wasnt pegging to the dollar and taking dollars out of circulation in favor of there own domestic currencies.

    Its really the dollar peggers who have the worst of it because they are using US monetary policy. They hold the keys to this system.
  6. We are who we vote for, so yes.