Wednesday, January 5, 2011
Global food prices at an all time high
Thank the politicians and federal reserve for this. An index that tracks 55 foodstuffs has risen 25% in the last year. Of course weather was a factor in some of these instances of increased food cost. However as the FED has continued to debase the dollar speculators have used the newly created dollars to buy commodities therby forcing up prices. Thanks Ben Bernanke. In addition we have stupid government programs like corn based ethanol subsidies. Corn ethanol now consumes around 40% of the US corn crop. This is food that we are burning in our gas tanks. Of course the new Congress will do nothing to change this $6 billion per year nonsense as the entrenched corporate interests still rule the halls of our government. I suspect this food inflation will become even more apparent to more lower and middle class Americans this year. Nevertheless this presents excellent investment implications for those that know what is going on.