Food Prices Kick in Stomach, Gas Prices Pumping Up

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Due to Drought, Climate, Weather Changes 

According to about.com’s Robert Longley, about 87 percent of the 2012 corn crop and 85 percent of the soybean crop stand to be ruined by the “extreme to exceptional” drought that has slammed more than half the country.  The U.S. Agriculture Department had predicted corn yields to reach be the nation’s biggest harvest ever in the spring, when farmers planted 96.4 million acres of corn — the most since 1937. But it cut its estimate a month ago and again Friday, saying it now expects the nation to produce 10.8 billion bushels, the least since 2006.  Corn is used as a benchmark for rising prices since it is used as an ingredient in everything from cosmetics to cereal, colas and candy bars.

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Adding to increased pricing pressure is the USDA’s proposed purchase of as much as $170 million worth of pork, lamb, chicken and fish for national food nutrition programs, such as food banks.  This move is designed to help livestock owners who are currently struggling to feed cattle or who may consider selling off their cattle early before food prices reach maximum levels.  This early purchase might result in less inventory – the unintended consequence of which will be higher prices.

Families with tight budgets will also be feeling the squeeze in the coming months when filling their tanks. With the price of gas already high during the summer months, the higher cost of ethanol, which is made from corn and blended with gasoline, is expected to raise gas prices 6 cents a gallon.

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Even without dramatic rises in food prices, though, the few more cents paid on every item can easily start to add up to thousands more in family expenses over the course of a year. “Consumers are very sensitive to the price of gas and food,” Jeet Dutta, a senior economist at Moody’s Analytics noted.

“It is one extra kick in the stomach,” added Chris G. Christopher, an economist for IHS.

Sources: 

Food Prices are about to Explode

Examiner: Expect Higher Prices at the Grocery Store and at the Pump due to Drought 

Global Rumblings: Turf painting spreads as drought ravages lawns ...

Jul 30, 2012

Turf painting spreads as drought ravages lawns - Yahoo! Weather · Turf painting spreads as drought ravages lawns - Yahoo! Weather: 'via Blog this' Survive Anything - Disasters - Economy Collapse - Mobs, Etc. PROTECT ...

Global Rumblings: Turf painting spreads as drought ravages lawns ...

Jul 30, 2012

Turf painting spreads as drought ravages lawns - Yahoo! Weather · Turf painting spreads as drought ravages lawns - Yahoo! Weather: 'via Blog this' Survive Anything - Disasters - Economy Collapse - Mobs, Etc. PROTECT ...

Global Rumblings: Turf painting spreads as drought ravages lawns ...

Jul 30, 2012

Turf painting spreads as drought ravages lawns - Yahoo! Weather · Turf painting spreads as drought ravages lawns - Yahoo! Weather: 'via Blog this' Survive Anything - Disasters - Economy Collapse - Mobs, Etc. PROTECT ...

Global Rumblings: Turf painting spreads as drought ravages lawns ...

Jul 30, 2012

Turf painting spreads as drought ravages lawns - Yahoo! Weather · Turf painting spreads as drought ravages lawns - Yahoo! Weather: 'via Blog this' Survive Anything - Disasters - Economy Collapse - Mobs, Etc. PROTECT ...

http://globalrumblings.blogspot.com/

Global Rumblings: Bible Prophecy Man Tired of Telling You

Jul 21, 2012

http://www.businessinsider.com/2012-food-shortage-2011-7. Tonight millions of American families will shovel huge piles of food into their mouths without even realizing that starvation is rapidly spreading in Africa. Right .

Global Rumblings: FEMA orders $1 Billion in dehydrated survival food

Jul 24, 2011

Right now these are just the "birth pains", but if things get much worse we could be looking at a horrific food shortage that will rock the globe. The following are 14 facts that make you wonder if the coming global food shortage ...

Global Rumblings: How to survive the Coming Food Crisis

Aug 01, 2011

Survival Gardening: Find out why I think growing your own garden is probably the best way to outlive a food shortage. Plus, I point out a major mistake most home gardeners make that could mean the difference between life ...

Wall Street 'Caught Off Guard' by Severity of Food Shortages

Jul 03, 2010

Wall Street 'Caught Off Guard' by Severity of Food Shortages ... http://www.activistpost.com/2010/07/food-shortages-reported-wall-street.html. Several recent ... on crops, Associated Press; Severe food shortage follows lack of ...

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Floods and Food Urban Survival

From George Ure's UrbanSurvival.com

Since I try to be a somewhat well-informed writer, I get all kinds of interesting reports and among Monday's was the USDA CropProgress update.  In it, we can see the impact of flooding in the nation's breadbasket in spades.

Take cotton:  So far this season that's not looking too bad.  The 2006-2010 average was 33% planted by this time, and this year it's only 26%.  Not a disaster.  But, you can't eat cotton.

Corn's a little different.  The national average planted by this time (2006-2010 in all these, right?) was 59%.  Instead, we have only 40% in and some states, like Michigan are only 8% planted compared with 49% historically.  Iowa is right on track, but Indiana?  4% planted compared with a 49% average previously.

Worse, in the survey of 18 corn producing states, only 7% of the crop has emerged (sprouted, eh?) versus a 21% average.

Soybeans are 7% planted instead of the usual 17%.

Sorghum and peanuts are doing fine, but sugarbeets?  Another disaster lurking:  Only 33% planted versus 77% in more normal times.

Spring wheat planting is behind, too:  22% in compared with the five year average 61% in the ground by now.  And of that, only 6% has emerged with a 25% average for five years.

Oats are down some, but more important with beer season fast approaching, barley is running at half-speed.

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I mention this now so you can keep an eye on headlines that related food to turmoil and inflation.  For example, here's a report that "Egypt's annual inflation rate climbs past 12 percent on surging food prices."

Here's another one:  "Tyson warns on rising food costs."

This morning, people in Alabama will start to receive federal food assistance in the wake of the storms a week, or so, back.

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Not too much can be done about the flood waters in the Mississippi River Valley, which crested at just under 48-feet in Memphis and are now working their way south toward Mississippi and Louisiana, except watch and see how much impact it has on crops as it works down to the Gulf.

Floods Push Merging With Canada?

A rather astute reader of ours, up in the Winnipeg area sent along this interesting take on recent flooding up there:

Dear Mr. Ure,

Flood escalation worries in Manitoba have prompted assistance from the Canadian military'sJoint Task Force West Group. It is an interesting opportunity to observe the blending of civilian and military emergency response activities. One could imagine successful operations contributing towards a favourable reception of the planned "Tri-Command Vision".

Why, I'm so old, I remember when this kind of thing fell to State National Guards.  But I suppose with almost all available in the sandbox/oilpen, this all makes sense to someone.

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Speaking of the new North American Government (you remember voting for that, right?):  You see where the US is planning to expand the Laredo truck crossing so as to put even more Mexican OTR gear on US roads?

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And if you thought someone had driven a silver stake through the CANAMEX Highway scheme, guess again.  Offishuldumb was out selling it last week in the hinterlands of Arizona.

I never cease to be amazed as the limited thought power of "offishuls" when it comes to least-cost labor promoters who want to bring in more and more truckloads of foreign goods when domestic unemployment is going back up - again. 

Calling Out the Republicorps

We can't help but notice that Texas is about to hand over more long-term operating leases of public highways as toll roads for often foreign companies. 

So the public pays for something - and then keeps paying for it forever.  That's a pantload of fresh & steamy, if you were to ask me.  And, sure as day follows night, I expect the Trans-Texas Corridor scheme to resurface, too.

Politicians as a class, have none, and are deaf to boot.

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Then we see where the Texas republicorps have pushed through a right-wing plan to make sure the "loser pays" so that people will be effectively priced out of suing corporations.  Unless you happen to be a multimillionaire.

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And, as if that's not enough, Florida is planning to cut unemployment benefits in order to pay for additional corporate tax breaks.

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The trend which the corpgov/republicorps types seem to have cobbled up (not without Big Bux help to be sure) is this:  End federal contributions to unemployment and instead move to more of a block grant approach, which will leave it up to States how to spend the money.

Add some slimy lobbyists to convince enough people in State Legislatures to go along with the hoodwinking, the corps would get money for pet projects as long as they can paint it up with the job-creation lipstick heavily enough.  The people who need money to eat?  They be get damned, starved, and turned out, but that's what wage-serfs are for, anyway.  Screw 'em.

Not.

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Magic Words:  The rabid right continues to sell mindless acceptance of the notion that the Obama administration as helplessly socialist.  The rabid's handlers just know that word - socialist - pulls on a certain mindset.  And, in truth, some of them are.

But what people are blind to is when the rabid right sells out the role of government as in U.I. money and tries to take projects already paid for with public money and turn it over to the private sector - that's raw, unpardonable exploitation.

You seeing a trend here?  Look really hard at both sides  - republicorps and democorps are at the trough and that means there's not room left for you and me.

There is no right or left.  Just thems that have and you and me.  Divine Rights of Capitalists and all that crap.

Somewhere Past Sticks & Stones

The UK Guardian reports a  UK court has given a UK hedge fund operator the green light to seek names of web posters from Wikipedia and Wordpress.  However,  whether the US companies will comply with a foreign court order is another thing.  Should be interesting to watch.

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Although the fellow's apparently going down the 'defamation' trail, not sure how far this would get, since "public figures" generally have a hard time suing over personal attacks here in the land where we don'thave to stand on a soapbox to speak our minds.

Trade Gap

Looks like the trade gap with China is almost up to $12-billion a month with $11.43 billion in April.

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So let's see, here:  Gap is up, that means it should bring the dollar down, and with the dollar down, er, gold and silver should go up along with the markets today.  Yeah...that oughta do it.

Quakes & Shakes

Well, nothing big going on in the New Madrid or Pacific Northwest on the quake front, but a tsunami warning was issued - then canceled for what was first reported as a 7.1 but downgraded to an 6.8 in the Loyalty Islands in the South Pacific overnight.

Plus, there's been a good-sized swarm in Puerto Rico, too.  Say anything about that 2.6 in Western Montana and I'll slap you.  No, Yellowstone is not going off, sheesh.

Sources:

http://urbansurvival.com/week.htm

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Food Prices are Exploding

'Explosive' Food Prices the Biggest Risk: Analyst

Published: Monday, 17 Jan 2011 | 2:26 AM ET

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By: Patrick Allen
CNBC Senior News Editor

Overheating emerging markets, in China in particular, pose the biggest threat to the market and political situation in 2011 according to Philippe Gijsels, head of research at BNP Paribas Fortis Global Markets.

Getty Images Food prices will contribute to rising world inflation, analysts warned.

“These economies are clearly overheating and governments are putting measures in place to slow them down to fight inflationary pressure. More than anything else, food inflation is a problem," Gijsels told CNBC.com.

"In countries were 70 percent to 80 percent and sometimes more of a family's budget goes to food, explosive price rises risk to destabilize these societies. Remember the old saying: 'hunger starves civilizations,’” he added.

“We believe that some of these governments will be quite aggressive in their inflation fight. And we do not even want to think about the consequences if this year were to have a disappointing monsoon,” Gijsels said.

He is worried that everyone is so bullish on China’s ability to engineer a soft landing.

“There is almost no emerging market bear to be found. And that in itself is already scary," Gijsels said.

"Nobody will be surprised when we see more (economic) volatility in Europe or even the US. A stronger slowdown in emerging markets than we currently expect would take everybody by surprise. Therefore its market impact would be much more violent,” he added.

Watch the Central Banks

Gijsels said he was surprised how quickly the market tested Portugal and the EU’s resolve to protect it in 2011 but believes the ECB has now drawn a line in the sand.

More from CNBC.com

• Central Banks Cloud Commodity Outlook: Economist
• Euro Crisis Would Hit China, Then America: Author
• Sovereign Credit-Default Swaps Market - Europe

“The ECB responded by supporting the bond markets of the weaker countries and were able to make the first couple of important auctions of the year into a success. It looks like the ECB has drawn a line in the sand around Portugal, first and foremost to defend Spain,” he said.

“They just cannot let one or more countries fail for they would risk a repeat of the Lehman Brothers' debacle on a national level,” Gijsels added.

Last year, the main positive development was the central banks and governments were able to "keep the system afloat," but the main disappointment was that they were unable to normalize monetary conditions and had to put more exceptional measures in place, according to Gijsels.

“Still, the resolve to not let the world economy slip into a Japanese or US depression of the '30s scenario is also very clear….in 2011 we will be more than anything else Fed, ECB and PBOC watchers,” he said.

© 2011 CNBC.com

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