I talk a lot about games, but today I don't want to. A) Because I am currently bored with the games I'm playing and B) I'm feeling a little nervous and upset about our current economic status. Glenn Beck is one of my favorite talk shows and I wanted to discuss this story I saw.
So just about everything that is essential in our daily lives is going up in price. Everyone is feeling it. Inflation is 10 or 11 percent, prices of gas are shooting through the roof and on top of it so is our food.
The average food inflation for American families is now running at 4.5% per year. But a lot of prices are up may more than that, take eggs for example which are up 30% in ONE YEAR. There is a huge surge in demand from China and India by millions of people moving up into the middle class and wanting to heat/cool their homes and they want to eat better and eat more. More food = more raw materials like grain and rice. So the demand is a lot higher and guess what? The supply is running short. So the prices of these underlying raw materials have just about tripled in the past 3 years. Apparently the food companies have been eating that cost increase...but not for long, soon its going to make its way to us.
On top of this we have the whole biofuel thing thats come at probably the worst time possible. We are shooting ourselves in the foot with this thing. It using a big chunk of the corn supply and for what? Some mythical concept of some new fuel that we will all be using. Where is it? I don't see anyone using it.
Brett Arends said "The emerging bull market in agricultural products is following in the footsteps of oil. A few years ago, many Americans hoped $2 gas was a temporary spike. Now it's the rosy memory of a bygone age." which is very true.
So I guess its time to start stockpiling food before the food riots start. LOL!... but seriously.