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411man
November 07, 2010, 11:09
I am shocked that this extremely important information has gone Four days without consideration here.

Time to wake-up to a huge series of Hits to everyone's food buying wallets and budgets.


Food Sellers Grit Teeth, Raise Prices

http://online.wsj.com/article/SB10001424052748704506404575592313664715360.html?m od=WSJ_hp_LEFTWhatsNewsCollection


" Kraft Foods Inc., Sara Lee Corp. and General Mills Inc. already have said they'll raise prices on certain items. Starbucks Corp. backtracked on an August announcement that it would hold coffee prices steady, saying in September it would boost prices of larger and hard-to-make drinks. This week, cereal maker Kellogg hinted that it will be raising prices, without disclosing specifics.

Grocery chains Safeway Inc. and Kroger have said they'll pass supplier increases along to consumers. " .


" Food prices are rising faster than overall inflation. The consumer price index for all items minus food and energy rose 0.8% over the year to September, the lowest 12-month increase since March 1961, the Bureau of Labor Statistics said. The food index rose 1.4%, however. The U.S. Agricultural Department is predicting overall food inflation of about 2% to 3% next year.".




end quotes.



The last quote is pure B.S. that rates of increase will only be 2 - 3 %.


I urge every reader to get any food preps they intend to aquire ASAP or experience the effects of the already onset of the shrinking purchasing power of your food buying dollar.

wyatt earp
November 07, 2010, 13:57
The main stream media is slowly informing the sheeple. Good post 411man.


http://www.cagle.com/news/FoodPrices/images/darkow.gif

Bawana jim
November 07, 2010, 14:24
Just my opinion of course but there ain't no way we will get through all the crap without going through huge inflation on commodities. QE2 will raise the prices of everything we use by 20%. It won't happen all at once but over time at about 5% a month till QE3 starts.

There is no protection even if you move your money or buy gold and silver. Your gold and silver will be spent buying commodities that are priced to their standard. Our money is toast and you can't escape that government has spent us into a depression.

If you believe that then what happens as it all goes down? People think if it doesn't happen "right now " then it aint happening. The fast food generation think all things happen "now". Fast computors and phones mean it all happens now. This is going to be slow and painful.

QE2 is going to inflate prices and cause the loss of jobs as 20% of our dollars value dissapears. The steps of quanative easing is the crash of the dollar and the loss of the American way of life. Those planning to get through it better figure what is on the other side of this and how to keep it from happening again to your kids.

Being realistic isn't doom and gloom.

jim

Bawana jim
November 07, 2010, 14:30
http://www.freerepublic.com/focus/f-news/2623146/posts

Federal Reserve Inflating Bubbles Pushing Agri-Foods to New Highs

RG Coburn
November 07, 2010, 14:47
Don't worry.. When the food starts pouring in from India,it will be so much cheaper.
Anybody want a bottled water?
It's "GangesPure"....

CG&L
November 07, 2010, 15:38
Bawana Jim pretty much nail it except for not saying QE4 and then QE5
All Helicopter Ben knows is printing. He may get the idea that printing is worsening the problem but he will still print.

I’ve looked at everything for a hedge. It isn’t going to be oil stocks. There’s already a worldwide glut of oil sitting in tankers. With reduced demand for oil these supplies will have to be dumped sooner or later.
Dumping huge amounts of oil on an already depressed market will kill stock prices
Besides, stocks are already too overpriced and will not rise in proportion to inflation

Buying foreign currencies is a no-go. Risky at best for the professional during good times and a disaster for the novice during tumultuous times

I’ve found no safe haven for investments. Even if you have enough land for a small farm, taxes will skyrocket as local governments try to save themselves. Small farms will be lost to the taxman


What would have worked in Zimbabwe?
If anybody has any ideas on how to hedge an inflationary spiral, now’s the time to chime in

Bama Steve
November 07, 2010, 17:03
Same consensus here.

"Ma' I just nicked the taxman/banker with my rifle".

Good boy, son"

Great depression II . . .

:cry:

Skilter
November 07, 2010, 20:04
It's gonna suck dudes... I hate to say it, but he may be right.

wyatt earp
November 07, 2010, 20:32
Having been fortunate to experience (I say fortunate now but didn't feel so at the time) a 50% overnight currency devaluation in a 3rd world country in which I was living at the time the absolute most important thing you can do is to adjust your frame of mind. Concentrate on bare bones living:

No eating out period

1 piece of chicken/meal...wean yourself off steak

No travel vacations

No credit purchases

No pedicures,manicures,spas,massages or any of that nonsense...put your foot down the wife will have to understand

Keep your car as long as it can run

No brand name clothing....thrift store purchases only

Rediscover the joys of reading....so when the time comes the loss of cable wouldn't be so difficult to endure.

Hardening yourself now will prevent forced difficult changes in the future.



http://www.thinkgeek.com/images/products/zoom/survival_kit_sardine_can.jpg

gates
November 07, 2010, 20:38
heh - infoman - the DUDE was warning about input costs and margin compression EARLY last week:

he posted this tonight for all of us to pass around - so it's clear WHO is to blame for this:-)

http://market-ticker.org/akcs-www?post=171514

read his tickers and zero hedge - you'll be at least a week ahead of the curve.

alant
November 07, 2010, 20:55
Originally posted by CaptainJ
What would have worked in Zimbabwe?
If anybody has any ideas on how to hedge an inflationary spiral, now’s the time to chime in
Land, I keep tellin' ya buy LAND! They ain't makin no more of it. Hunting/fishing/farming/timber land.

Dolvio
November 07, 2010, 21:32
http://i261.photobucket.com/albums/ii46/Dolvio/weimar-hyperinflation-could-it-happen-again.jpg

Land is great if you can afford the wheelbarrows full of federal reserve notes to pay the yearly offering (taxes). Taxes are going to keep going up because politicks don't know how to cut services apparently. So with fewer and fewer paying the bills, expect your share of the tab to go up dramatically.

http://i261.photobucket.com/albums/ii46/Dolvio/weimar.jpg

http://i261.photobucket.com/albums/ii46/Dolvio/weimarchildren-playing-with-money.jpg

411man
November 07, 2010, 22:22
Please give these articles a read.




US food prices increase sharply

http://www.wsws.org/articles/2008/mar2008/food-m12.shtml



NIA Projects Future U.S. Food Price Increases

http://www.thestreet.com/story/10913105/1/nia-projects-future-us-food-price-increases.html




Food price inflation remains low this year, to rise in 2011, says USDA

http://www.foodnavigator-usa.com/On-your-radar/Food-finance-and-prices/Food-price-inflation-remains-low-this-year-to-rise-in-2011-says-USDA




Food Inflation Accelerating as Cooking Oil Poised to Catch Grains

http://www.bloomberg.com/news/2010-10-31/food-inflation-rising-as-cooking-oil-poised-to-catch-up-with-grain-gains.html


Expect higher grocery bills in 2011

http://www.kansas.com/2010/10/29/1562808/expect-higher-grocery-bills-in.html


The Food Crisis Of 2011

http://www.prophecynewswatch.com/2010/November06/0691.html


USDA: Food inflation to accelerate into 2011

http://www.marketwatch.com/story/usda-food-inflation-to-rise-into-2011-2010-10-25


Food inflation to ‘accelerate’ into 2011

http://www.omaha.com/article/20101026/MONEY/710269980

gates
November 07, 2010, 22:35
bottom line - 6 months until the grain ramp fully shows up in the stores - 18 months to 2 years for beef - this is not an "IF" it's a "WHEN".

gates
November 07, 2010, 22:38
Wyatt - is that a tin of Spam:-)

Bawana jim
November 07, 2010, 22:39
As people get to understand the food bill is going to increase it will be another bubble. Prices will rise and shortages just like in ammo. If shortages are man caused and big enough then government will declare marshal law and take over the food supply. Just opinion again, I don't know anything.

jim

411man
November 07, 2010, 22:43
Food Crisis in 2011: Forbes Prediction


http://eatdrinkbetter.com/2010/11/05/food-crisis-2011/



" According to Forbes, the rise in food prices is accelerating, and this is just the beginning. They’re predicting a food crisis in 2011 to rival the food shortages back in 2008.".

Eric Bryant
November 07, 2010, 22:46
Inflation is impossible - all the "smart guys" said that cost-push inflation can't happen, and that demand-pull is the only way for prices to increase.

:rofl:
:uhoh:
:sad:
:cry:
:mad:

This is going to suck for a whole lotta people.

gates
November 07, 2010, 22:52
Eric - Margin compression is the thing that will fuk us and put us in a full blown depression - I asked Karl a few weeks ago if COMMODS would be what stopped Ben - he did not reply but it turns out I was RIGHT! and it is now the core of his thesis.

TheJokker
November 08, 2010, 07:44
i guess rising food prices has nothing to do with reduced food output this year...

(supply decreases prices increases)

starbuck
November 08, 2010, 08:46
If your growing soybeans things aren't so bad.

http://i325.photobucket.com/albums/k371/starbuckroad/soybeans.jpg

Ricketts
November 08, 2010, 08:59
Originally posted by alant

Land, I keep tellin' ya buy LAND! They ain't makin no more of it. Hunting/fishing/farming/timber land.

Nope.

It can be taxed so high you can't afford to own it.

It ain't portable.

You can't simply carve off a hunk to buy dinner.

AND--the gov KNOWS who owns it. Therefore, they can and will take it. Ask the Jews of Germany, WW2 era. Or the whites that used to call their home Rhodesia or South Africa.

Nick H.
November 08, 2010, 10:10
" According to Forbes, the rise in food prices is accelerating, and this is just the beginning. They’re predicting a food crisis in 2011 to rival the food shortages back in 2008."

Wheat prices right now are lower than they were in the winter of 2007 - 2008. If this food crisis rivals the food shortage back in 2008, then we will hardly notice at the grocery stores. How many of you remember the food crisis of 2008?

The vast majority of our food dollar goes to preparation and packaging. In undeveloped countries most of the food dollar goes to the actual raw materials (wheat and rice). They will feel the pinch.

gates
November 08, 2010, 11:12
Nick I think the difference here is the '07-'08 spike was primarily speculative - THIS time it's only a component not the main driver - If I recall correctly we were not seeing shrinking portion size and rising prices at the grocery store.

CG&L
November 08, 2010, 11:51
As gates stated, speculation was the problem in the 07-08 spike. This time it will be loss of confidence in the US$ that spikes everything

I think alant might possibly be right about buying land or at least right to some degree
Farmable land will be confiscated by the government through taxes or outright theft via eminent domain.
Smaller lots, say10 acres or less and not connected to farmable land, may not be annexed by the government

In Weimar Germany and Zimbabwe, their dollar fell by about 1 trillion to 1
This would mean taxes of about 1 trillion/day or more for the average homeowner
Taxes could not be calculated on a yearly basis should we have hyper-inflation and could certainly not be paid by anyone

Nick H.
November 08, 2010, 12:14
If the commodities prices are driven upwards by the shrinking value of the dollar, then it is simply inflation. We will likely see fuel, fertilizer and all the other imported goods increase in value likewise.

Regarding farmland purchases, I hope that is the right thing to do. My brothers and I purchased farm land in 1983, 1987 and then again recently. The government may very well tax it away from us, although at this point there is no federal property tax. If and when it comes to outright confiscation, it will be similar to confiscating peoples guns. It will not happen without bloodshed. There is a lot of blood sweat and tears that goes into a farm. Some of this land was farmed by my grandfather and some by my great grandfather. Confiscation of that land would be more severe to me than confiscating my weapons and I don't intend to allow either to happen.

Bawana jim
November 08, 2010, 12:53
http://www.freerepublic.com/focus/f-news/2623570/posts

Within a decade, a loaf of wheat bread may cost $23 in a grocery store in the United States, and a 32-oz package of sugar might run $62.

A 64-oz container of Minute Maid Orange Juice, meanwhile, could set you back $45.71. This is all according to a new report released Friday by the National Inflation Association which warns consumers about the coming wave of food price inflation that's about to strike the western world.

richbug
November 08, 2010, 14:21
Originally posted by Nick H.

Regarding farmland purchases, I hope that is the right thing to do. My brothers and I purchased farm land in 1983, 1987 and then again recently. The government may very well tax it away from us, although at this point there is no federal property tax. If and when it comes to outright confiscation, it will be similar to confiscating peoples guns. It will not happen without bloodshed. There is a lot of blood sweat and tears that goes into a farm. Some of this land was farmed by my grandfather and some by my great grandfather. Confiscation of that land would be more severe to me than confiscating my weapons and I don't intend to allow either to happen.

Glad I am not the only one with those feelings. Very few things besides my family worth fighting over. The family farms are one of them.

RG Coburn
November 08, 2010, 18:44
Originally posted by TheJokker
i guess rising food prices has nothing to do with reduced food output this year...

(supply decreases prices increases)

Yes...but has it? Are farm outputs down this year? Everything around here(Michigan) looked good,and harvests went off without much problems.There is very little corn or soybeans still standing,like 1-2%..maybe..

Dolvio
November 08, 2010, 23:29
Silver is off the chain!

Knocking on $28 an ounce.

http://www.kitco.com/charts/livesilver.html

gates
November 08, 2010, 23:56
this feels like fear and speculation at the moment - we have not really entered the food ramp YET - we're tasting it - pun intended - but we are not there YET! when it happens it will be OBVIOUS. Still time to get that years supply guys - but time is VERY short.

Eric Bryant
November 09, 2010, 07:09
Originally posted by gates
Eric - Margin compression is the thing that will fuk us and put us in a full blown depression

Margin compression will indeed happen (it was happening already in early-/mid-2008, until the banking crisis crushed commodity prices). But we're already seeing something beyond that:

I just got back from the grocery store. Eggs, which were $1.60 two weeks ago, are now $1.99/dz. Butter? Two boxes for $6 - on sale. The same two boxes were $4.50 a couple months ago. Land-O-Lakes Brand? $4.89 - each.

Sure looks like honest-to-god "cost-push inflation" to me. That comes from KD, by the way.

But back to margin compression - it's a real threat. Anyone who thinks that inflation will be good for the US hasn't ever worked in manufacturing, where wealth is created by processing raw materials into finished goods. Since we import so damn much material nowadays (steel and rare-earth minerals from China, integrated circuits from Taiwan, copper from Chile and Peru, plastic from Saudi Arabia, etc.), any devaluation of the dollar hits the balance sheet in a very uncomfortable manner. This does nothing good for the shareholders or the employees, despite the bleating of certain sheep who welcome Bernake's war on the dollar.

Then the poor factory workers get a double-whammy, since energy and food prices continue to eat away at their paychecks. When you're making a whopping $9/hour, "little" increases in food and gasoline really hurt (far more than any "increased competitiveness against the world" helps). For those of us that are better-off, inflation probably won't threaten our existance - it just devalues our hard-earned savings, and margin compression will hurt our investments.

So the bleating sheep can STFU, because living in mommy's basement and dicking around in the service industry doesn't quite allow the level of real-world education required to comment on weighty matters such as this. My 8-week-old son has just as much insight on this issue.

TheJokker
November 10, 2010, 08:08
Originally posted by RG Coburn


Yes...but has it? Are farm outputs down this year? Everything around here(Michigan) looked good,and harvests went off without much problems.There is very little corn or soybeans still standing,like 1-2%..maybe..
http://www.ft.com/cms/s/0/249211fc-ec1d-11df-9e11-00144feab49a.html

Food price fears as US warns on crop yields

The spectre of inflation loomed over agricultural markets after the US slashed key crop forecasts and warned of shortfalls in grains.

The agriculture department on Tuesday cut estimates of US corn yields for a third successive month, forecast record soyabean exports to China and warned of the slimmest cotton stocks since 1925.

“The combined production shortfalls and dramatic potential stock drawdowns mean a much tighter supply picture than just a few months ago,” the agency said in a separate grains report.


follow the link for more info.

gates
November 10, 2010, 10:46
Hey - Congrats on the addition to the family Eric - thats great!

Jokker - you're not getting it bro - margin compression ruins economies - it's a negative feedback loop - when the increase in cost of goods sold cannot be passed onto consumers - companies reach the point where they cannot operate at a profit - then what - they fire all their employees and close up shop.

Multi-Nationals will probably be least affected but what percentage of our workforce do they employ -

ThunderGod
November 10, 2010, 14:25
A lot of the coming food-inflation could be halted if the US stopped converting foodstuff into fuel.:mad: