You’ve likely seen mentions of inflation popping up amid some MSM discussions. Without a doubt you have seen significant price jumps at your local supermarket.
The reason is simple, JoeBama’s economic policies are beneficial to the multinationals, crushing to the domestic U.S. economy and driving massive increases in prices in a variety of sectors. As a consequence the leftist financial media (almost all financial media) are churning out deflection points, but if you understand the background you can predictably see the cause and effect.
USA Today – From tortillas to cornbread, some of your favorite corn-based dishes may go up in price late this summer. Corn has been leading the rally among grain commodities, rising more than 30% in 2021, according to MarketWatch. (more)
NOTE: Wheat, corn and soybeans are the foundation of the U.S. food supply. They are primarily used as ingredients in processed foods, oils, and are fed to the cattle, hogs, and poultry that supply meat and eggs for the American diet. When those grain harvests go up in price the downstream increase in price is far reaching.
Remember, there is no such thing as a “commodity” market in the free market sense of the word. Those commodity markets are now “controlled markets“, and fully under the control of massive multinational agricultural corporations.
[…] “Americans should definitely expect an eventual rise in prices later in the year,” says Moya. “The surge with grain prices should not immediately be visible at supermarkets, since retailers absorb the initial increase. (But) eventually, the margin pressure will be too big and probably at some point late in the summer, Americans will start to take notice to some increases on grocery shelves.” (more)
Many Americans are recently awake to the singular ideology that surrounds DC politics. The UniParty political fraud also applies to our political economy. However, just like the election, understanding the deception in modern economics means understanding previous false and promoted assumptions.
Economically speaking, Bernie Sanders supporters and the various left-wing advocates therein, are correct in stating the greatest financial and economic benefits have been delivered to the top 2% wealthiest people, the Wall Street class per se’.
Factually, while not resenting the wealth, most intellectually honest conservatives admit this is also the current reality. The wealth disparity in the U.S. increased substantially over the past two decades. It was only under the economic policy of Donald Trump when the wealth gap actually began to close for the first time in decades.
Additionally, the professional political class would like both sides on the political continuum to continue disunity, argument/disagreement on the outcome and avoid discussing the root cause. It is within a comprehensive understanding of the root cause where Americans find unity.
We’ve already discussed how two entirely divergent economies, a Wall Street economy, and a Main Street economy, were created by exploitation of financial interests and the accompanying legislative priorities.
Regardless of mid-1980’s political motives, the result was the creation of two entirely disconnected economies. The professional political class merely pandered to the demands of their most influential legislative donors. Hence, TARP, Bailouts, etc.
Main Street’s economy was/is a more traditional economy, based on “Americanism“ and economic patriotism. Wall Street’s economy is purely financial (mostly paper), and based on the multinational financial instruments that underline “Globalism“.
This is not to say that all Wall Street engagements or activities are bad, they are not. Financial instruments and corporate interests have a large place within our traditional economy. However, global financial instruments may, or may not, have a similar positive influence.
Given the historic rise of global corporatism and massive multinational’s, it’s easy to spot the inherent anti-nationalist sensibility. Wealth doesn’t spread without a spreader; and American wealth doesn’t spread, without an American wealth spreader.
So we end up with two economies; which, over time, have grown further and further apart. The wealth disparity between the middle class and the “well off” class, tracks identically with the separation of these two economies. – SEE HERE –
[…] there had to be a point where the value of the second economy (Wall Street) surpassed the value of the first economy (Main Street). [This important acceptance is just common sense. The U.S. GDP is currently around $20 trillion, but the total valuation of the Wall Street stock market is much larger than our GDP. Wall Street is more valuable than Main Street. It is a simple albeit important reality to accept.]
Investments, and the bets therein, needed to expand outside of the USA. Hence, globalist investing.
However, a second more consequential aspect happened simultaneously. The politicians became more valuable to the Wall Street team than the Main Street team; and Wall Street had deeper pockets because their economy was now larger.
As a consequence Wall Street started funding political candidates and asking for legislation that benefited their interests.
When Main Street was purchasing the legislative influence the outcomes were beneficial to Main Street, and by direct attachment those outcomes also benefited the average American inside the real economy.
When Wall Street began purchasing the legislative influence, the outcomes therein became beneficial to Wall Street. Those benefits are detached from improving the livelihoods of main street Americans because the benefits are “global” needs. Global financial interests, investment interests, are now the primary filter through which the DC legislative outcomes are considered.
There is a natural disconnect. (more)
President Trump was confronting multinational corporations and the global constructs of economic systems that were put in place to the detriment of the host (USA) ie YOU. There are trillions at stake; it is all about the economics; everything else is chaff and countermeasures.
The road to a “service-driven economy” is paved with a great disparity between financial classes. The wealth gap is directly related to the inability of the middle-class to thrive.
Elite financial interests, including those within Washington DC, gain wealth and power, the U.S. workforce is reduced to servitude, “service”, of their affluent needs.
The destruction of the U.S. industrial and manufacturing base is EXACTLY WHY the middle class has struggled, and exactly why the wealth gap exploded in the past 30 years.
Behind this dynamic we find the international corporate and financial interests who were inherently at risk from President Trump’s “America-First” economic and trade platform. Believe it or not, President Trump was up against an entire world economic establishment. Conversely Joe Biden is an ally of the multinational corporations.
When we understand how trade works in the modern era we understand why the agents within the system are so adamantly opposed to U.S. President Trump.
♦The biggest lie in modern economics, willingly spread and maintained by corporate media, is that a system of global markets still exists.
It doesn’t.
Every element of global economic trade is controlled and exploited by massive institutions, multinational banks and multinational corporations. Institutions like the World Trade Organization (WTO) and World Bank control trillions of dollars in economic activity.
Underneath that economic activity there are people who hold the reigns of power over the outcomes. These individuals and groups are the stakeholders in direct opposition to principles of America-First national economics. Collectively known as “The Big Club”.
The modern financial constructs of these entities have been established over the course of the past three decades. When you understand how they manipulate the economic system of individual nations you begin to understand why they are so fundamentally opposed to President Trump.
In the Western World, separate from communist control perspectives (ie. China), “Global markets” are a modern myth; nothing more than a talking point meant to keep people satiated with sound bites they might find familiar. Global markets have been destroyed over the past three decades by multinational corporations who control the products formerly contained within global markets.
The same is true for “Commodities Markets”. The multinational trade and economic system, run by corporations and multinational banks, now controls the product outputs of independent nations. The free market economic system has been usurped by entities who create what is best described as ‘controlled markets’.
U.S. President Trump understood what had taken place. He used economic leverage as part of a broader national security policy; and to understand who opposes President Trump specifically because of the economic leverage he creates, it becomes important to understand the objectives of the global and financial elite who run and operate the institutions. The Big Club.
Understanding how trillions of trade dollars influence geopolitical policy we begin to understand the three-decade global financial construct they seek to retain and protect.
That is, global financial exploitation of national markets.
FOUR BASIC ELEMENTS:
♦Multinational corporations purchase controlling interests in various national outputs (harvests and raw materials), and ancillary industries, of developed industrial western nations. {example}
♦The Multinational Corporations making the purchases are underwritten by massive global financial institutions, multinational banks. (*note* in China it is the communist government underwriting the purchase)
♦The Multinational Banks and the Multinational Corporations then utilize lobbying interests to manipulate the internal political policy of the targeted nation state(s).
♦With control over the targeted national industry or interest, the multinationals then leverage export of the national asset (exfiltration) through trade agreements structured to the benefit of lesser developed nation states – where they have previously established a proactive financial footprint.
Against the backdrop of President Trump confronting China; and against the backdrop of NAFTA renegotiated; and against the necessary need to support the key U.S. steel and aluminum industries; revisiting the economic influences within the modern import/export dynamic will help conceptualize the issues at the heart of the matter.
There are a myriad of interests within each trade sector that make specific explanation very challenging; however, here’s the basic outline.
For three decades economic “globalism” has advanced, quickly. Everyone accepts this statement, yet few actually stop to ask who and what are behind this – and why?
Influential people with vested financial interests in the process have sold a narrative that global manufacturing, global sourcing, and global production was the inherent way of the future. The same voices claimed the American economy was consigned to become a “service-driven economy.”
What was always missed in these discussions is that advocates selling this global-economy message have a vested financial and ideological interest in convincing the information consumer it is all just a natural outcome of economic progress.
It’s not.
It’s not natural at all. It is a process that is entirely controlled, promoted and utilized by large conglomerates, lobbyists, purchased politicians and massive financial corporations.
Again, I’ll try to retain the larger altitude perspective without falling into the traps of the esoteric weeds. I freely admit this is tough to explain and I may not be successful.
Bulletpoint #1: ♦ Multinational corporations purchase controlling interests in various national elements of developed industrial western nations.
This is perhaps the most challenging to understand. In essence, thanks specifically to the way the World Trade Organization (WTO) was established in 1995, national companies expanded their influence into multiple nations, across a myriad of industries and economic sectors (energy, agriculture, raw earth minerals, etc.). This is the basic underpinning of national companies becoming multinational corporations.
Think of these multinational corporations as global entities now powerful enough to reach into multiple nations -simultaneously- and purchase controlling interests in a single economic commodity.
A historic reference point might be the original multinational enterprise, energy via oil production. (Exxon, Mobil, BP, etc.)
However, in the modern global world, it’s not just oil; the resource and product procurement extends to virtually every possible commodity and industry. From the very visible (wheat/corn) to the obscure (small minerals, and even flowers).
Bulletpoint #2 ♦ The Multinational Corporations making the purchases are underwritten by massive global financial institutions, multinational banks.
During the past several decades national companies merged. The largest lemon producer company in Brazil, merges with the largest lemon company in Mexico, merges with the largest lemon company in Argentina, merges with the largest lemon company in the U.S., etc. etc. National companies, formerly of one nation, become “continental” companies with control over an entire continent of nations.
…. or it could be over several continents or even the entire world market of Lemon/Widget production. These are now multinational corporations. They hold interests in specific segments (this example lemons) across a broad variety of individual nations.
National laws on Monopoly building are not the same in all nations. Most are not as structured as the U.S.A or other more developed nations (with more laws). During the acquisition phase, when encountering a highly developed nation with monopoly laws, the process of an umbrella corporation might be needed to purchase the targeted interests within a specific nation. The example of Monsanto applies here.
Bulletpoint #3 ♦The Multinational Banks and the Multinational Corporations then utilize lobbying interests to manipulate the internal political policy of the targeted nation state(s).
With control of the majority of actual lemons the multinational corporation now holds a different set of financial values than a local farmer or national market. This is why commodities exchanges are essentially dead.
In the aggregate the mercantile exchange is no longer a free or supply-based market; it is now a controlled market exploited by mega-sized multinational corporations.
Instead of the traditional ‘supply/demand’ equation determining prices, the corporations look to see what nations can afford what prices. The supply of the controlled product is then distributed to the country according to their ability to afford the price. This is essentially the bastardized and politicized function of the World Trade Organization (WTO). This is also how the corporations controlling WTO policy maximize profits.
Back to the lemons. A multinational corporation might hold the rights to the majority of the lemon production in Brazil, Argentina and California/Florida. The price the U.S. consumer pays for the lemons is directed by the amount of inventory (distribution) the controlling corporation allows in the U.S.
If the U.S. lemon harvest is abundant, the controlling interests will export the product to keep the U.S. consumer spending at peak or optimal price. A U.S. customer might pay $2 for a lemon, a Mexican customer might pay .50¢, and a Canadian $1.25.
The bottom line issue is the national supply (in this example ‘harvest/yield’) is not driving the national price because the supply is now controlled by massive multinational corporations.
The mistake people often make is calling this a “global commodity” process. In the modern era this “global commodity” phrase is particularly nonsense.
A true global commodity is a process of individual nations harvesting/creating a similar product and bringing that product to a global market. Individual nations each independently engaged in creating a similar product.
Under modern globalism this process no longer takes place. It’s a complete fraud. Massive multinational corporations control the majority of production inside each nation and therefore control the global product market and price. It is a controlled system.
EXAMPLE: Part of the lobbying in the food industry is to advocate for the expansion of U.S. taxpayer benefits to underwrite the costs of the domestic food products they control. By lobbying DC these multinational corporations get congress and policy-makers to expand the basis of who can use Food Stamps, EBT and SNAP benefits (state reimbursement rates).
Expanding the federal subsidy for food purchases is part of the corporate profit dynamic.
With increased taxpayer subsidies, the food price controllers can charge more domestically and export more of the product internationally. Taxes, via subsidies, go into their profit margins. The corporations then use a portion of those enhanced profits in contributions to the politicians. It’s a circle of money.
In highly developed nations this multinational corporate process requires the corporation to purchase the domestic political process (as above) with individual nations allowing the exploitation in varying degrees. As such, the corporate lobbyists pay hundreds of millions to politicians for changes in policies and regulations; one sector, one product, or one industry at a time. These are specialized lobbyists.
It is ironic when we discuss corporate financial payments to government officials in foreign countries we call them corrupt. However, in the United States we call it lobbying, the process is exactly the same.
EXAMPLE: The Committee on Foreign Investment in the United States (CFIUS)
CFIUS is an inter-agency committee authorized to review transactions that could result in control of a U.S. business by a foreign person (“covered transactions”), in order to determine the effect of such transactions on the national security of the United States.
CFIUS operates pursuant to section 721 of the Defense Production Act of 1950, as amended by the Foreign Investment and National Security Act of 2007 (FINSA) (section 721) and as implemented by Executive Order 11858, as amended, and regulations at 31 C.F.R. Part 800.
The CFIUS process has been the subject of significant reforms over the past several years. These include numerous improvements in internal CFIUS procedures, enactment of FINSA in July 2007, amendment of Executive Order 11858 in January 2008, revision of the CFIUS regulations in November 2008, and publication of guidance on CFIUS’s national security considerations in December 2008 (more)
Bulletpoint #4 ♦ With control over the targeted national industry or interest, the multinationals then leverage export of the national asset (exfiltration) through trade agreements structured to the benefit of lesser developed nation states – where they have previously established a proactive financial footprint.
The process of charging the U.S. consumer more for a product, that under normal national market conditions would cost less, is a process called exfiltration of wealth. This is the basic premise, the cornerstone, behind the catch-phrase ‘globalism’.
It is never discussed.
To control the market price some contracted product may even be secured and shipped with the intent to allow it to sit idle (or rot). It’s all about controlling the price and maximizing the profit equation. To gain the same $1 profit a widget multinational might have to sell 20 widgets in El-Salvador (.25¢ each), or two widgets in the U.S. ($2.50/each).
Think of the process like the historic reference of OPEC (Oil Producing Economic Countries). Only in the modern era massive corporations are playing the role of OPEC and it’s not oil being controlled, thanks to the WTO it’s almost everything.
Again, this is highlighted in the example of taxpayers subsidizing the food sector (EBT, SNAP etc.), the corporations can charge U.S. consumers more. Ex. more beef is exported, red meat prices remain high at the grocery store, but subsidized U.S. consumers can better afford the high prices.
Of course, if you are not receiving food payment assistance (middle-class) you can’t eat the steaks because you can’t afford them. (Not accidentally, it’s the same scheme in the ObamaCare healthcare system)
Agriculturally, multinational corporate Monsanto says: ‘all your harvests are belong to us‘. Contract with us, or you lose because we can control the market price of your end product. Downside is that once you sign that contract, you agree to terms that are entirely created by the financial interests of the larger corporation; not your farm.
The multinational agriculture lobby is massive. We willingly feed the world as part of the system; but you as a grocery customer pay more per unit at the grocery store because domestic supply no longer determines domestic price.
Within the agriculture community the (feed-the-world) production export factor also drives the need for labor. Labor is a cost. The multinational corps have a vested interest in low labor costs. Ergo, open border policies. (ie. willingly purchased republicans not supporting border wall etc.).
This corrupt economic manipulation/exploitation applies over multiple sectors, and even in the sub-sector of an industry like steel. China/India purchases the raw material, coking coal, then sells the finished good (rolled steel) back to the global market at a discount. Or it could be rubber, or concrete, or plastic, or frozen chicken parts etc.
The ‘America First’ Trump-Trade Doctrine upset the entire construct of this multinational export/control dynamic. Team Trump focused exclusively on bilateral trade deals, with specific trade agreements targeted toward individual nations (not national corporations).
‘America-First’ is also specific policy at a granular product level looking out for the national interests of the United States, U.S. workers, U.S. companies and U.S. consumers.
Under President Trump’s Trade positions, balanced and fair trade with strong regulatory control over national assets, exfiltration of U.S. national wealth is essentially stopped.
This puts many current multinational corporations, globalists who previously took a stake-hold in the U.S. economy with intention to export the wealth, in a position of holding contracted interest of an asset they can no longer exploit.
Perhaps now we understand better how massive multi-billion multinational corporations, and the political institutions they pay for, were/are aligned against President Trump; and they will never relent in their need to see the risk he/we represents destroyed.
I will never relent in my support for anyone who fights this enemy.
Joe and Kamela say – let them eat stalks.
Everyone should read — ” THE CREATURE FROM JEKYLL ISLAND ” A second look at the federal reserve
By – G. Edward Griffin
‘ The federal reserve is not ” Federal ” any more than ” Federal Express ” …. it has no reserves.’
Fractional reserve banking is a giant ponzie scheme
He has many short explainer videos out there for free on yoo tube and elsewhere.
Freedom Force International .com was his web page , seems to have been hacked , now being rebuilt.
Another good one if you want to understand the fraud that is the federal reserve is Zeitgeist part 2. Joseph is a communist, but he understands that scam.
Looks like I’m going on the overpriced, starvation, Xiden-Heiress raw roughage diet.
Chewing my cud all day
Nah! If you can, buy some land and plant! It’s healthier for you and you get a workout for free!
UNTIL ‘THEY’ TAKE YOUR LAND…
Or stop you from growing unless you use their GMO seeding
I see a lot of comments like this and I really don’t understand the point that’s been driven. It’s like blight from political newcomers trying to throw clout where knowledge is devoid.
Anyone that knows farming or law already knows that the 1938 AG act destroyed commerical farming. Wickard v. Filburn in 1942 ran over crop ownership. We don’t own what we grow as is and have not owned it for several decades.
You guys talk like something is impending and have no realistic idea of what’s already happened.
Production of durable goods were seized and taken a long time ago.
Wow – just wow!!!
1974 – Bushel of corn $4.00
2021 – Bushel of corn $6,78
So, a car back then was $3,000 – now $35,000
Harvard annual tuition was $2,000 – now $75,000
Gallon of Gas – $0.53 now – $3.00
…and Conservative Tree House is bitching about corn prices? WTF!! That is by the way, Mr. Sundance born in NYC or Beverly Hills, CA the price of feed corn – you know what pigs and cows eat – not people.
If you don’t like the price of corn then buy a farm get up every morning at 4:00 am and get off your ass and be a farmer instead of of a scribbler. You won’t – you’re lazy.
Ha!
#1 you are an idiot.
#2 you don’t know you are an idiot
#3 you are so stupid, you cannot comprehend your level of idiocy.
but you make me laugh, so I vote we keep you around.!
Thanks HAHA!
So we now have an Antifa representative here. Dear God, you are pathetic.
No facts, just projection. You must be a public school teacher during the day.
The price of a bushel of grain over time is meaningless. Inputs, and average yield are two variables that impact net income.
1974 ave yield on most productive ground around 150Bu per acre, today that same acres is capable of 250 bu per acre.
Inputs are way up, but the most trackable is price of ground. 1974 ~@1200/acre. Today? same CSR(Corn Suitablity Rating +15,000/acre
you are so correct and soon the evil will be destroyed with us included…. Biden has started a war we will not win
Thanks Sundance. Most here will not relent in this fight either. Molon Labe
Corn price has doubled since November 2020 harvest. Trump out China in.
Since March 2020………….and now you’re just noticing?
I have posted this before. We grow a small amount of corn on our diary farm.
One of the biggest rip-offs in history occurred in late 2020.
As soon as the soybean harvest was completed in October the majority of the crop was sold for $9/Bushell. In 30 days it rose to $13/Bushell. This price increase was totally unexpected and came out of no where.
Corn wasn’t going to rise either. But alas as soon as the corn crop was harvested in November the farmer was obediently sheared for $3/Bushell and helplessly watched it pass $5/Bushell in less than 30 days.
Who profited? Cargill, ADM and other multinationals. They easily made several times more money than all the farms in the U.S. combined. They knew ahead of time Trump was out and China was in.
HMMM……… 1933 , turn in your gold for $ 20 an oz.
Soon after revalued by FDR at $ 35 an oz.
The Song Remains The same
They know how to do it (to us) SparrowHawk!
All farmers know how “To Hedge”. Many sold last years beans in August at $8 because the price was dropping like an elevator.
You don’t have to farm to hedge. Anyone can play the CBOT.
Go ahead and loose all your money.
Sorry if I am ornery. I know a dozen farmers that grow 5 – 10 thousand acres and they will tell you the same thing I did.
Actually, you have to be a producer to utilize a pure hedge, otherwise you’re just a speculator seeking to mitigate his risk. I heard it all before, most small farmers are not hedging their production and distribution costs. Glad you’ve heard of the CBOT, now learn how to use it.
Its all speculation and if that is where the money is buy some corn and do a pure “hedge”.
Read my post “This price increase was totally unexpected and came out of no where” and “They easily made several times more money than all the farms in the U.S. combined.”
The “big farms” hedged and lost “big” and unfortunately some big farms “hedged” the 2021 crop at 2020 prices and are going to loose their shirt “big” in 2021. Anyone that thinks hedging is just a win/win deal is crazy.
Furthermore small farmers know more than CBOT. I resent being called a “small farmer” as though “small farmers” are failures. I said we grow a small amount of corn -enough to feed our dairy herd that has produced cows gnomically ranked #7 in the world with world wide embryo sales. And we don’t employ illegal aliens either.
You sound as paranoid as equity market traders that do not get the price that they wanted. Corn futures have trading since the 1880s. If you plant a farm, you can do math required to hedge your production. The CBOT was created for you. Learn how to use the CBOT and stop complaining because your competitor understands the market better than you do.
You sound like a pure a s s. Your “logic” is that mom-n-pop should have no problem competing with Wal-Mart. “Let mom-n-pop learn to buy for pennies and sell for C-notes like Wal-Mart can!” Ridiculous. Ever heard of economy of scale? Monopolies?
And how are ADM and Con-Agra “competitors” of family farmers? They are the sharks and family farmers are the seals.
Ya these know it all’s are the exact dipshits that just ran the Oil and Gas Industry into the ground with their investment banker buddies.
He has been posting his trading advice all over the CTH. Their mouth usually goes into overdrive right before they lose everything. Michael Avenatti ring a bell.
Reminds me of the teenage kid who got laid his first time and now has to tell the entire world how to “do it”.
In my original post I described what happened to the BTO (Big Time Operator’s)
I could care less if corn is $2 or $10 a bushel.
Why do you deflect attention from the rip-off that happened to the failure of farmers to market their crop? You sound like U.S. Farm Report.
Classic Troll Strategy.
How many know Soros made a fortune off Gavilon?
BTW the little dab of 2019 corn we sold fetched a higher price than anyone I know.
And I could have sold my entire 2020 crop for $7 the other day but the cows would get hungry.
If only we could find a way to buy from you versus the big “farmers” who are putting you out of business. We have to band together for the right thing to do but life is tough and it is impossible to spend the time to find an buy your product versus theirs. The big conglomerates find ways to temporarily take out the small private family small farmers. And us consumers just don’t have the time to locate you and buy from you – even though we know what the conglomerates are doing to you. Temporarily lowering prices to remove you then once you are gone, they own the market :(. We prefer to buy from you. We prefer you but we are unindated with convenience in a time where we are given no choice but convenience. I miss the old days where people have time to enjoy and maximize life and personal time.
If you have the crop in your possession, hedging is a good thing for farmers. Millisecond(computer enabled) trading by the “hedgers”, with no possession of a crop, can be problematic
Most farmers do not know how to hedge. Most who try hedging become speculators before they know it. The same with cattle people.
I have raised crops which can be hedged on the futures market and crops not traded on the exchanges. people cuss the exchanges, but there is a lot less inherent risk with crops which can be hedged on the exchange.
I found fundamentals to be useless. I stick to technical indicators. Fundamentals are too easily manipulated by the multinationals.
“Most farmers do not know how to hedge.“
When the Production Possibly Curve is continuously being distorted by subsidies and set-asides, accurate price forecasting becomes difficult.
Farmers can typically make money in bull market: buy low; sell high.
Farmers can also make money in a bear market: sell high; (with a futures contract now) buy low when prices fall.
Farmers struggle to show a profit when monetary policy is erratic and regulatory activity is unpredictable.
Hedging can only partially offset these risks. Price volatility makes losers of everyone except the CBOT and commodity traders, the brokers who earn a little bit from both sides of the futures contract trade.
What are you hedging?
US agricultural productivity is the world’s best. The resultant output not only satisfies domestic uses but there remains a surplus to be sold abroad.
This is a useful bargaining chip in foreign relations. Not many countries are immune to a US grain embargo. The worst abuses of the Soviet Union were somewhat mitigated by the threat to withhold wheat supplies from them.
Most people never give a second thought about farmers, who do more for US diplomacy than a fleet of aircraft carriers.
It is my sincere prayer that you and your farming associates enjoy abundant harvests and healthy livestock. The whole world is dependent on your good efforts.
We know how to hedge, but we have to fight the USDA and their infernal crop reports moving the markets, China’s way.
“Learn to hedge.”
When I lost my well-paying manufacturing job they said, “Learn to code.”
When BLM torched my store they said, “Learn about fire insurance and risk management.”
When Antifa broke my arm at a Trump rally they said, “Learn first aid.”
When my retirement funds became valueless through runaway inflation they said, “Learn to invest in precious metals.”
It is no wonder that educational institutions are so well attended. They protect against all evil.
Corn futures have been trading since the 1880s. There’s no excuse not to use the financial tools available to mitigate your risk.
BTW, I passed the Series 3 exam on my first attempt, so please exercise a little more restraint than you showed toward RedBall.
Did you just hear that giant whoooooosh?
I think it went over his head.
Kudos. Anyone could can the brokers’ exams if they;re willing to study.
John D. Rockefeller was a rich man before oil was discovered, by trading commodities in Cleveland, OH….
And I was told that Gold was a hedge against inflation.
Think again.
A good rule of thumb to follow. Stop listening to advice and procure the information yourself. There are lots of free trading platforms providing the historical and real time data that you seek.
I never listened to the advice of salespeople hawking this that or the other investment. I just find it fascinating that Gold rose only 3% in your list of items where the next closest was coffee at 13% and the numbers for all the other commodities only rocket skyward from there on up. Gold was always marketed as a hedge against inflation, and it’s DEAD LAST, not even a quarter of the rate of inflation of the next commodity in line. I just wonder if goldbugs ever saw this list of yours and reconsidered the dogma about gold.
I have suspected that gold is being manipulated by either the Treasury Dept, the Fed, or both. Gold is up from 2018, when it languished at $1250. With all the dollars that have been created recently, it would stand to reason that gold should be much higher. It hasn’t budged much since the recent stimulus, so it should move higher. If there is even more stimulus passed, then gold should really shoot up. Eventually, even the Treasury and the Fed cannot prevent that.
China is again buying a lot of gold. They were buying it hand over fist about 7 years ago.
Great, great advice. I mean seriously it is not rocket science. Learn chart formations and they all tell a tale. Keep it very simple with just one or two indicators.
I advise begin with being a position investor rather than a day-trader. As an example for a position investor. I got a buy signal for the Dow Jones April 2020 and I am still waiting for a sell signal.
I don’t have to be smart and think this or think that. I will know when to sell when my indicator indicates sell. I use a simple green arrow when to buy and a red arrow when to sell.
People ask me, Do I know when the market will top or when the market will bottom? My answer is I always know “when”. It is when I see a green arrow or when I see a red arrow.
Right now I am still under the influence of the green arrow April 2020. Yes, it is looking toppy but this is where patience comes in to play. It is not about what I think, but what I see.
If it were as simple as some simple foolproof algorithm that gives you a green buy signal or a red sell signal, everybody would be using that.
Can you offer details of your superior approach to investing, to enlighten us commoners? “Green arrow, red arrow” does not say anything at all.
No? Didn’t think so.
Everyone’s a genius in a bull market but Fangdog will yelp like a scalded puppy when he gets the margin call from his broker.
I don’t know much about finances but I do know how to be debt-free and save as much as I can and only spend when I need to. I put my trust in God knowing that money is value is a fools gold. We are so far in debt in the world is so far in debt that there is going to be an economic crash as the world has never seen before in all the financial gurus didn’t know how to do this and know how to do that or actually blowing smoke you where. With manipulating interest rates borrowing money they can never be paid it’s not going to end well.
You are wiser than probably 95% of the population.
You absolutely know nothing about “shorts”. It doesn’t matter to me whether the market goes up or down. I make money either way.
“You absolutely know nothing about ‘shorts’.”
To the contrary, I know you are too short for this ride.
willthesuevi is right. You don’t know the Series 3 from Apple’s Siri.
I know the series 3. it does not make you a trader unless you’re actually involved with making the trading decisions.
Guess not, since I got 86’d.
One would think with the advent of ETFs that novice investors would finally get a clue.
The trend is your friend. FangDog does not need to pick the tops or the bottoms. All he has to do is take out the middle section. No daytrading involved.
I don’t use algorithms.
I can offer detail. The average person takes 15 years to develop his or her successful trading system and psychology and I am no exception. It is why you won’t find it on the internet. Why show someone on the internet they can learn in two weeks which took you 15-years starting from scratch?
Yes, there are plenty on the internet selling systems, but people who are consistently successful do not peddle their wares on the internet.
All the information that anyone needs to be a successful trader is in financial text books and internet. The best piece of advice one can have is to know yourself.
“Buy low, sell high.”
“Sell on the rumor, buy on the announcement.”
“Be patient and don’t give in to panic.”
“Don’t invest more than you can lose.”
It’s not all that complicated, unless you are trying for maximum possible income.
To invest (long term), pick stocks or funds with consistent yearly growth. To trade (short term), pick volatile stocks (with ups and downs). Wall Street is emotional: best trading return is on stocks with lots of emotional expectations (“I’m gonna be rich!”), as they have the biggest swings.
Take these with a grain of salt or six. I’ve only been doing it for a year, and these concepts seem to work. My gains have been about 90% yearly adjusted.
I used to think trading was 50% psychological but I have learned the hard way it is 100% psychological.
I do know this much, those attempting to disparage me on my trading, 100% do not know bird-sh*t from honey. Also, I know they better not try, their ego’s are way, way too big for this business. Lol
“Humbleness” the most desired trait. I have found the most successful investors are also the most humble.
..the most humble…
but then again, I am the first one not to count.
You would think so but most people cannot identify the trend.
I remember when charts were black and white without all the pretty colors. Trend, price pattern, momentum is my motto.
Absolutely
I asked my broker how many fail day trading? He said 95% in the first 90-days and 4% of the remaining 5%, within the year.
I said aren’t you worried about losing clients? He said new ones are standing at the door the following morning. Lol
Yep, those numbers are correct. Been there, dine that. Stuck it out and finally know how to take profitable trades, in financial futures anyway.
Yep, only need to color price bars for buying and selling. Pick any two colors you like. The trend is your friend until the end (momentum fading).
It will be, eventually. When people wake up. I advise you to think about how and where you can sell it when the time comes. Buying is one thing, selling when the time comes is another.
The red arrow knows!
There is a sucker born everyday.
I have always heard to base the intrinsic value of gold at the price of a decent suit…this simple comparison still holds true if you compare…1 troy oz can buy a decent suit at the current price…btw I worked at an industrial gold mine in CA for 12 years
I understood gold would always buy one the same amount of bread throughout history.
“ I worked at an industrial gold mine in CA for 12 years.”
Appeal to Authority
I apologize in advance for playing the role of logic Nazi here but perhaps this thread should be devoted to analyzing Sundance’s arguments.
Today’s commentary is way wide of the mark and getting lost in the weeds.
Did no one read the OP? How is it that so many are still arguing for the primacy of derivatives over that of the underlying asset?
How much more convincing can the argument be that Wall Street has displaced Main Street in the hierarchy of values?
Am am getting increasingly impatient with those who show up for class only to fall asleep at their desk.
You are not alone with your impatiences. I wonder if these people actually read Sundance’s article . Sundance warns us not to get lost in the weeds.
Gold is a hedge against inflation. Especially when compared to just being liquid with cash.
I picked up gold at $1295 an oz in mid 2018. Today I could sell that back for $1804 an oz. (I just checked the buyback price)
That’s far better than if I had held the cash under my mattress as I did with the gold. I would have lost value had I held cash. Instead I gained $509 an oz. if I sell it today. Gold is all about when you buy, what you buy, how long you hold and when you sell….if ever. (same as any hedge)
Absolutely true. I don’t support propaganda so I support this post.
I really miss President Trump. Our Country was just beginning to right itself after the monster waves of the demonic globalist Uniparty trying to convert us into a service based society, i.e. serf-based economy.
I think I will be watching more Jon Voight movies. Amen Jon. Amen
Wait until the spigot stops……………long commodites, short the capital and equity markets
I recently shorted Avis car rental. It’s way to pumped up and I expect the Dems will push the virus untill after the 2022 elections.
Inflation is a feature, not a bug. More $$$ for the multinational/globalist corporations. And who pays for the food price increases for the “poor,” who recieve SNAP, WIC, etc. benefits? U.S. Taxpayer$$$. Oh, and add a million or two illegal aliens per year.
I know, lets subsidise ethanol, divert corn and land from food production for a subsidised fuel additive that will destroy the seals on your big expensive outboard.
Bbbbbbbbbuuuutttt it’s GREEN!
How can you be so shortsighted, or deplorable, or flat earther, or
Intelligent?
Yep, Ethanol as fuel is a bigger scam than a Government subsidized windmill in a basement.
Itz all about the feeelz baby!
Ethanol as a social lubricant would be a far better application than burning it as fuel. ?
I recall that former president Trump was all for phasing out ethanol subsidies when he was running for president in 2015, but then he made trip to Iowa and talked to some farmers there, and the next day he dropped his objections to the ethanol subsidies. I have five small motors used for lawn work in my tool shed that will no longer run because I put gasoline with ethanol in them. Now I have sense enough to only use marine gas in small engines.
It’s no coincidence Bill Gates has been buying up all the farmland he can get.
First I heard there will be a shortage on beef, now I hear chicken wings.
I don’t want the processed crap anymore. Someone on the Coke thread enlightened me to the horrors of high fructose corn syrup and I have an inherited fatty liver of which my mother (who never drank nor was obese/fat) and my brother both died of (he drank wine regularly). And it says it goes straight to the liver and becomes stored fat as well as high lipid panel as well as belly fat.
I am looking to getting a soda stream and get my family off of HFCS as best as possible, at least in our home. Everyone is on board.
But I can live without the corn byproduct of HFCS and nobody likes ethanol. And you wonder why this nation has gotten so heavy. As much as we make fun of the Left, you don’t really see obese people going into Whole Foods and Trader Joe’s.
I’ve already been getting away from Global Corporate foods anyway since they stopped coupons and making more scratch cooking. But I will be reading labels much more now for all the junk. Goodbye Hungry Jack syrup, hello real maple syrup. Goodbye Coke and Pepsi, et.al., hello Sodastream and soft drink syrup with real cane sugar. And many, many more brands and off brands we’ve gotten with it, Sweet Baby Ray’s BBQ sauce. No wonder it was so cheap.
High fructose corn syrup needs to go the way of trans fats. I can’t believe this has not been exposed in a more public fashion. They really are trying to kill us, and sell us statins.
Oh, and there has been a start of a push to get rid of beef because of Climate Change. An online recipe magazine has dropped all beef recipes, and a restaurant in NYC has changed to vegetarian because it is “not sustainable”. I’m sure we’ll hear more and more and there will be beef or just meat shaming going on.
Avoid the center aisles at the grocery store. Real food is found at the perimeter. Also, if it comes in a box, it isn’t real food.
Pastry flour and baking powder come in boxes.
pastry isn’t a food group
Au contraire! Pastry is most definitely a food group!
As is bacon, and beer.
Those are raw ingredients not requiring refrigeration, and are not really palatable out of the box.
Raw pasta is also in the interior. As is vinegar, olive oil, and many fundamental food items that are packaged without added sugars or any chemicals.
Frozen vegetables are also not on the perimeter of my supermarket. Canned fruits and vegetables that don’t have added sugar or excess sodium are also found in the interior.
So while one can purchase healthy foods around the perimeter, many healthy food items used in cooking and prep are in the interior.
We overproduce way too much damned corn in this country.
It simply is not a healthy food. High fructose corn syrup is horrible nasty stuff to be avoided. Corn high in sugars that humans do not need. HFCS a huge contributor to our obesity epidemic. All the cokes and sweet drinks are absolute crap.
The high intensity corn production systems across the Midwest are propped up by govt subsidies and your tax $$.
Corn production systems apply excess fertilizers and pesticides and it beats the stuffing out of our soil and water systems. The state of Iowa has some of the nations worst water quality and highest nitrate concentrations.
In addition to HFCS corn is in about every damned processed food.
A large portion is grown for export to east Asia — China Japan S Korea — for feed for their livestock. US corn production does not feed starving people in s Asia or Africa. It will not shipped there. Almost all exports go to east Asia livestock.
The whole system needs to be dialed back dramatically. Don’t look for cargill ConAgra or adm to do this any time soon.
So you’re with Gates? We should eat 3D printed “meat” and “eggs.” You first — you be the guinea pig.
You absolutely miss the point of the large body of factual information I present.
I’m with gates? 3D eggs? Good lord what on Earth are you talking about. You know absolutely zero about agriculture or global trade.
Stick to little league.
Buck, shop local famers markets.
Shop Local organic food coops that feature local organic meat producers.
don’t be put off by the blue-haired kids there.
I guess Ethanol (corn) does a number on your inside piping just like it does to your internal combustion engine.
Kaco, Please consider the amount of sugar, carbohydrates, and starch you consume. If you want to keep living longer, then do some research. It’s easy to tell from your posts that you search quite a bit. I choose not to post links; do this yourself. Re-discover the meat and vegetable parts of your store.
Keep in mind that the FDA is owned by BigAG, Big Pharma, etc. The standard and recommended diet is designed to kill us. Doctors generally know little about nutrition; diagnosis and drug treatment is what they do. People need to learn the causes of problems, which is mostly nutrition.
Wheat, corn, and soybeans have made me sick for decades now. Imagine a BIG CANKER -HERPES like painful sore at the end of your nostrils every time you ingest them that lasts for weeks at a time?
Methinks American farmers need to rethink chemicals, especially any from Monsanto. Imagine how much more prosperous American’s in general, and farmer’s in particular, would be if they didn’t pay for Roundup ?
Speaking as a farmer….you have not a clue what you are talking about. You sound like the typical Libtard when it comes to this subject.
The libs are correct about food and monsanto and so is Retired IG.
You do know the World would be in mass periods starvation if we farmed as Libtards think we should farm. Every Libtard farmer I know who has farmed 100% Libtard farming has gone broke.
I have farmed Libtard, but never 100% of my farming operation Libtard. Libtard farming is strictly a marketing tool.
There are alternatives. Which do you consume and how have you fared since going off, as you would put it, the “Big Ag” products?
Retired, you probably have Candida.
Look it up online and investigate the diet that will free you from being sick from wheat, corn and soybeans.
the diet requires you to eliminate those products from your diet, for starters.
Drop sugar-all forms-minimize your dairy and you will improve without needing any pills from the doc.
Remember the chicom commies own how many of our meat companies and whore bill gates the other half!!
“The UniParty political fraud also applies to our political economy.”
And it’s like 2016-2019 never even happened. Is there NOTHING from MAGA that remains? or was it all so easily dispersed in the 2020 winds of fraud and deception? How were all President Trump’s achievements so quickly negated at the flip of a switch?
At least the depth and extent of the corruption is now visible like never before. We could have and should have been told…
The fed has three tools. Gibberish, fixing the interest rate and money printing machinery. The people are told it operates independently with no political influence. Absolutely no accountability. Audit the fed.
So Sundance is on point as usual. Question is, how do you not get burned financially in a hyperinflating economy. TIPS (Treasury Inflation Protected Securities)? Real Estate/Land? I would assume plain old cash won’t cut it, neither will equities. Bonds pretty much suck with low rates and will suck more with inflation. That leaves commodities (which are the thing inflating), metals (gold/silver), or if your risky, cryptocurrency? Let me know your thoughts, thanks
“[H]ow do you not get burned financially in a hyperinflating economy.”
Short answer: flight into “real” goods.
You do not want to be holding fiduciary media, defined here as a financial instrument whose redemption depends on the issuers making good on their promise to pay.
Obviously, if you live in a one-room NYC tenement, you will find it awkward to stock up on lumber. Laying in a store of ammunition and firearms will put you at variance with city ordinances. Instead, put away a quantity of “junk” silver.
If you live “in exurbia” fill your storage sheds with seed corn and fertilizer. Get a spare fuel tank for diesel fuel. Bury and camouflage same. Construct an outbuilding where corn can be processed into tortillas.
If hyperinflation leads to financial collapse, the fuel oil and fertilizer can be converted into valuable trade goods. ☠️
If you live in-between, put up a large quantity of those items that are useful for sheltering in place during hurricane season.
The blow-off top of a crack-up boom is sudden and violent. In the aftermath, prices for labor and food are deeply depressed.
Make sure you have a few capital goods on hand to make your labor more productive because you will be on your own until the capital markets stabilize.
Not cryptocurrency; there’s no “there” there.
I must have read through this at least 10 times over the years, and it never disappoints. I try to share with others.
Most are too impatient or disinterested to slog through it (for me, it’s not slogging).
So important to get this overview. I have a little house abroad, with a great flat roof and perfect weather. Needs no AC or heat, except for a few days.
Gonna create a roof garden, with chickens and maybe rabbits. Neighbors share seeds. Most are heirloom varieties, because people never got into hybrids.
I can improve my resiliency. And maybe share with neighbors. At 74, it’s s the best I can do.
Be sure to fence it all in on your roof — you’ll create a lot of flying predators who love chicken and rabbits.
“attract” (not create)
It is how the phrase; “Its raining cats and dogs”. Farm animals would sleep on the thatched roofs of yore for rising heat from the inside. When the roofs became soggy from the rain the animals would fall through the roof.
Joe and Racist Democrats wishing for it America,?
All good if imperfect insights.
But what, exactly, is driving the price increases in corn and the other basics in the US?
Is it just the huge multinationals’ manipulations? Or are there other fundamentals at play too?
One overarching factor we hear about is the general slowdown of everything due to the artificial “public health emergency” of the past year. We are told this is the main reason for shortages and price increases, with the cascading effect on everything.
Look at the inflation in oil prices. It’s needed to run tractors and trucks.
I’m fortunate to live in VERY rural central PA, in the heart of Amish country where food is plentiful. No shortages of pork, chicken, beef, corn, or anything else.
Since most liberals along with their ignorant base, live in and around the major cities of the US, I’ve always thought that one way to beat them would be to cut off their food supply. If we could get all the farmers to just stop selling food to them and get all shippers to stop trucking the goods into those carphole cities, maybe would could starve them into submission. Yeah, I know that would not work now, but if things get much worse and this cold civil war goes hot, then that course of action becomes a very real possibility.
There are a couple reasons the idea of cutting off food to liberals in cities is a nonstarter:
1. Farmers have to pay their bills.
2. Big multinationals own and/or control much of the farming and production anyway.
For those of us with gardens, seeds are becoming scarce. We switched to open pollinated or heirloom bc we can save the seeds but there is a learning curve on that skill. Good news is that they are hardier plants and need less water.
Don’t be too confident about rural areas and our food supply. We have a serious shortage of canning jars, they are virtually impossible to buy from stores or even charity shops. Freezing food is one thing but you need electricity. Newell owns monopoly on Ball/Kerr canning jars. They belong to World Economic Forum whose Great Reset Manifesto declares they are third option to governing the world.
Estate/Garage/Yard sales and Second Hand Stores are probably the best place to find ’em.
Pretty sure that most younger people, when they clean out Grandma’s place, have no idea what to do with a canning jar.
“We have a serious shortage of canning jars.”
I have noticed this anomaly. If you have any Mennonite or Amish neighbors, approach them with a a trade offer. The Amish, in particular, like Velveeta cheese because it requires no refrigeration.
Opportunities abound for the alert entrepreneur.
“Remember, there is no such thing as a “commodity” market in the free market sense of the word. Those commodity markets are now “controlled markets“, and fully under the control of massive multinational agricultural corporations.“
This more than ever I now know to be true. I never really got it until I understood what the Redditors were trying to do until they attacked Silver. They didn’t have enough gas in the tank for that. But commodities, precious metals, foreign currency is all being manipulated by the Central Banks to give the appearance of a stable dollar.
Look I am not here to tell you if that’s bad or good. I can easily say it’s not free market. But if the dollar plunges all he$$ breaks loose. Gonna party like it’s 1929. That’s how the thorn crypto currency stabs them in the side. They can’t manipulate supply or short the market.
You know in history this has happened before. How much longer before the govt says no you will not be transacting with crypto. I think that’s why Elon did it just to poke them a bit. But at some point that will have to be cutoff.
Will be interesting to see how the C Banks resolve this huge dilemma. I suspect a new digital blockchain dollar (yada yada). That is problematic too because the deep state gets a lot of its funding off the books (drugs and human trafficking).
If I read this a year ago I would say take me away boys I’m ready for the conspiracy asylum. But I don’t think I’m too far off the mark these days. Maybe a little off my rocker but I’m still on the porch.
Prices of everything going up. Obama smiles when Americans feel pain.
Sundance that is an outstanding dissection analysis and explanation of ‘The Big Club’ as you put it.
One of your best. This was not put together in 30 minutes. An example of why you are still the go-to site for so many of us.
Ive read mountains of technical papers thru my career. This is as good as it gets.
Where else can anyone read penetrating analysis like this.
With appreciation and thanks.
Buck
It always comes back to this in the end:
1 Timothy 6:10
1599 Geneva Bible
10 For the desire of money is the root of all evil, which while some lusted after they erred from the faith, and [a]pierced themselves through with many sorrows.
Okay, but what about those who desire to put food on their tables for their families? If they’re not self-sufficient, with land and labor and know-how and tools, how are they going to get food without money?
Hi, coki… Margie’s quote from the Bible is accurate.
The Bible and all modern translations refer not to money itself, but to the love of it… where the lust for it takes on a life of its own.
And as Sundance points out, with these multi-nationals, their quest for maximizing profits… comes at the very destructive expense of American jobs, dreams and aspirations.
And this is what President Trump tried to put a stop to… curtailing their destructive gravy train.
Amen
Heard a great explanation on the radio from a farmer as to why chicken (meats) shortages actually work. The answer: it’s all bullshit, there is no shortage.
Farmers raise their chickens, pigs, and cows. Spend money on grains, supplements, additional farm operating costs, etc. There is nothing stopping farmers from raising thousands of animals to go to slaughter.
However, in order to “slaughter and process” an animal, the USDA must issue a permit for it/them. A farmer who may have 3,000 pigs ready for slaughter is being told by the feds you can only slaughter and process 1,000. Because timing is everything in the raising and processing of meats, the other 2,000 that are not permitted by the FEDS to be processed, are slaughtered and then usually incinerated to dispose of them.
THERE IS NO SHORTAGE.
THE FEDS ARE THE ISSUE.
Maybe same thing as farmers leaving productive acres fallow? I wouldn’t be surprised if there could be plenty of crops and meats grown for quite inexpensive products. But this would not allow globullists to create inflation that puts many more $$$$$$ in their pockets.
Read about pet food. Meal is made of feathers, fish scales and other non-food crap. No nutritional value. Just filler.
So, it is basically a hot dog.
And there is no truly free market.
This may be TMI, but we were hog farmers and all male piglets were castrated relatively painlessly at 3days old. It was two quick incisions and a splash of disinfectant. They took a couple ouchy steps and went back to litter. NOW they are chemically castrated. If anyone has eaten Taylor ham or ham roll in PA/NJ? That is what boar meat tastes like. It permeates the meat especially as males get older and now all store pork tastes a little boar meaty. I was finally so frustrated that I looked up why. I no longer buy pork in grocery stores, only from local farmers who use the old method. I suggest that it is a safer choice.
Quite interesting. Thanks
Great explanation.
The American farmer can over produce anything in a heartbeat. Any food shortage problem is a Political created problem.
Yep, summer 2021 is going to be an INFLATION bloodbath.
Bullet points from the farm looking up:
Price of corn is up but so is fertilizer, diesel, spray materials and everything else used to produce the crop.
Most of that other stuff went up before corn went up and farmers were trying to make a decision on how much to plant.
Just before planting, while still in the planning stage and time to decide whether to plant corn beans or nothing, price goes up.
A lot of farmers, including the farmer that leases my corn ground, decided to plant corn.
He will end up making about the same as always given high corn and high expenses. So we keep growing the corn to supply the market.
Now read the super analysis of Sundance again. They had to keep us in the game. If the corn had not gone up, the supply would have crashed, and the multinationals need the corn in the market to manipulate. Without planting, the diesel and fertilizer markets would not be as hot either. Next year would be shortages.
Wealth is first created when something of value is produced from dirt and materials of little value. With corn that occurs at the farm. The traders first have to have a commodity to manipulate so the first goal is to get the corn in the pipeline. Plus all of the materials and fuel are in separate manipulated pipelines where the people at the bottom do all of the work.
We will make just enough to stay in business another year. It is exactly as they want it.
“Been there done that” all my life.
Some people here don’t seem to get it in their head that the system is rigged.
There is a shortage of grain worldwide from natural causes.
ADM and the multi-nationals shipped our corn to Mexico and China cheap and now we are paying the price.
Probably some subsidization already, but what portion of all consumer products will be heavily subsidized with more debt spending to continue to blind the gullible? Some hidden budget line item. Corn is in practically everything the consumer uses on a daily basis, even “gas”. Lumber is not used often and is pretty discretionary.
I don’t see anyone here extrapolating to the backyard farmers. Many, many people bought chickens in the lockdown and make their own food from the chickens (eggs and meat). Now they can’t afford layer mash or scratch grains. What happens to the hatcheries who depend on backyard flock sales? What happens to the chickens nobody can feed?
I raise PRE horses (Andalusians) on the side. Feed is out of sight and climbing. I bred only one foal this year in anticipation. I will probably not be able to sell it when it gets here because the backyard riders will be shedding their current horses and looking to downsize their herds.
This happened in 2008 as well. The horse market never recovered.
This is not only about how speculators and game players can make money in food, guys. It’s also not only about you paying more for those ears of sweet corn for the summer BBQ.
Wish you were in PA. Wish more we could afford your foal. 🙂 so sorry for your troubles.
This should be required reading for every U.S. citizen!!!!!
Here in the PNW, the Chinese have purchased more of our specialty wheat in the last six months than they have in the last six years…..indeed much of the same for corn and soybeans from the U.S.
My wife and I haven’t eaten grains or soy, or meats trashy are fed them, in years. Never felt better. Plus we garden, can, and ferment or own vegetables. Not that hard. We shop locally for the rest
FTA: Our models have been warned that this 8.6-year cyclical wave into 2024 will be one of commodity inflation due to SHORTAGES rather than speculative demand. All the indications that the world is heading for a serious food price crisis are in play. The Food Price Index (FFPI) of the Food and Agriculture Organization of the United Nations (FAO) averaged 107.5 points in December 2020, an increase of 2.3 points (2.2%) compared to November 2020, which represents an increase for the seventh consecutive month.
With the exception of sugar, all sub-indices of the FFPI recorded slight gains in December, with the sub-index for vegetable oil again rising the most, followed by that for dairy products, meat, and cereals. For 2020 as a whole, the FFPI averaged 97.9 points, a three-year high, 2.9 points (3.1%) higher than in 2019, but still well below its 2011 high of 131.9 points. It is also interesting that the FFPI in 2002 was still 53.1 points. It only increased significantly from the financial crisis of 2007/08, only to then level off in the 90-point range. Since May 2020 it has increased by 18%.
Our models project that the upward trend in the FFPI will intensify going into 2024.
https://www.armstrongeconomics.com/markets-by-sector/agriculture/food-crisis-of-2021-in-europe/
FOA (Food and Agricultural Organization) Food Price Index Rising For the Tenth Straight Month
Click on the link to see several excellent charts.
FTA: » The FAO Food Price Index (FFPI) averaged 118.5 points in March 2021, 2.4 points (2.1 percent) higher than in February. The increase marked the tenth consecutive monthly rise in the value of the FFPI to its highest level since June 2014. The increase was led by strong gains in vegetable oils, meat and dairy sub-indices, while those of cereals and sugar subsided.
https://www.fao.org/worldfoodsituation/foodpricesindex/en/
Here comes our holomodor
I sure hope not.
Thank you SD for the information and how the price structure works on multinational corporation’s what’s headed to the west basically inflation. We see criminals in power hell-bent on destroying the West and Freedoms and enslavement for the near future.
🙁
I suspect the inflation is also one of many unintended consequences of shutting down the entire US economy for several months. That has never been done before in world history, and so we do not know what the downstream consequences will be. There is a lot of pent up demand, for example. There are also weird incentives on the government side screwing things up like how the Feds are messing with the labor market trying to bribe people into not going back to work as a back door means of driving up wages for low-income, entry-level, jobs. Can’t pass a new minimum wage? Just offer welfare that pays $10/hr more and make restaurants compete with your bottomless money printing machine.
Also, keep in mind that we have had very high inflation for over a decade now. The response to the 2008 financial/housing crisis was to inflate the economy to keep it from collapsing. A lot of people think that there wasn’t runaway inflation, but the reality is that we had very high inflation in the 2008-2012 period. You just have to ignore the 1% number reported in the media and realize that +1% inflation looks small compared to the -15% deflation we would otherwise have experienced. The Fed was basically standing in the basement of the economy trying to keep the floor from caving in.
That’s why when the Argentinian levels of hyperinflation never materialized in the core inflation rate, people were so confused. “Why don’t we have 16% inflation with all this money getting printed?” A: we did. -15% deflation + 16% inflation = 1% price increases.
Thanks to Pres. Trump, we entered 2020 with the strongest US Economy in our nation’s history. There was no real deflation to overcome once the economy restarted post-lockdowns. So, any real inflation we see now will show up almost immediately in consumer prices because prices are not trying to overcome deflationary pressure.
The big issue is what the Fed will do. They seem to be trapped. https://www.cnbc.com/2021/04/11/powell-says-its-highly-unlikely-the-fed-will-raise-rates-this-year-despite-stronger-economy.html
Right now everyone is still pretending there is no inflation. All they have to do is rig the books to keep the numbers below 2% and the easy money policies will continue.
The Government Party cannot tolerate high interest rates due to debt service (#1) and the student loan crisis (#2) and the fact that cheap money is baked into Wall Street stock prices (#3). For good measure, throw in political pressure by the various Realtor and Homebuilding Associations (#4) to keep the wildly fast growing real estate market careening towards disaster by keeping mortgage rates low.
There’s just too much pressure on the things the Government Party cares most about for the Government Party to allow high interest rates to control inflation. So, they’ll do what they did during the Obama years: claim there is none. The media will play ball.
I wouldn’t be surprised if many things are subsidized. Fake gas (ethanol) is. Real gas is much higher than fake gas. I would bet lots of things are subsidized and multinationals are told to keep quiet about getting paid quite a few dollars thru the back door. Is this how some don’t pay any taxes thru “loopholes”. “Shut your trap and all will be good.”
Subsidization being done to keep prices to the consumer down. DC “pays” a certain percent of the increase thru look other way on taxes to multinationals not paying any of very little.
Ag subsidies are like minimum wage. The floor becomes the ceiling.
I think you are right on subsidies but this time I think they might be taking a different approach.
Increase welfare 20% to help the lower end, bleed the middle class and the multinationals and china get rich.
America is about to become bankrupt anyway… And our GMO corn and grains are not safe to eat….
94 some-odd paragraphs of stellar analysis and you have to pick out ONE word?
Here’s a word for you…
dick
or dik if sue prefers…..
Or how about phallus since she seems to want everyone to know she smart.
So if you’re a resturant that is limited to a percentage of seating capacity due to WhuFlu dictates, now you have to raise prices on the few customers you’re allowed to seat.
Look for more resturants to go under now.
Tell me again why any of us should care what YOU think about anything.
Sounds like Lindsey Graham is more your speed. He writes a lot of wonderful strongly worded letters that don’t do shit. But I bet he spells, and conjugates, and verbalizes, and does that comprehension stuff real well.
Oh and make sure you grade what I wrote. You can be like every other teacher that underestimated me.
I can tell you for a fact, that every time I make another deposit in the bank, they do not care what I wrote on the slip but they really, really, like the dollar signs and numbers.
Go away and leave us in peace.
Not too long ago we took the boys out to a u-pick strawberry farm. Turns out they have a lot more than strawberries. They don’t accept EBT (unsurprisingly) but I think we’ll be sourcing as much of our food from them, from now on, as we can. (The sweet potatoes are amazing. We bought them about two weeks ago and I finally fixed them last night and they tasted like they’d just come out of the field.)
If I’m going to be paying higher-than-usual prices anyway I’d rather be paying them to a local farm.
This is a great suggestion TC! We have one not too far from us in Irvine, Ca.
Check out the you-pick Blueberry Farms later in the summer. West Coast grows blueberry TREES compared to what I’m used to in N.E.
Big, round, sweet and freeze VERY well.
mmmm mmmm Good!
It will be ……raining on Ll of us soon….at least they will call it rain….. 🙂
Either you’re keeping busy re-arranging the deck chairs or you win the grand prize for “TROLL OF THE YEAR”.
A comment/link about food shortage in Europe got me thinking……population densities per sq km (0.4 sq km to 1 sq mi, so half these numbers for approx sq mi). I did a quick search of continents/land forms and here they are for your consideration. And you can maybe guess some places are heavy concentrated in just a few place like places with deserts, etc. And of course places with good big areas to get to in a pinch.
European Union, 117; US, 92; Canada, 3.8; South America, 56; Africa, 46.3 (I’m sure quite concentrated in few areas); Asia, 150 (China and India overwhelm Asian Russia); North America, 18; Mexico, 66; Australia, 3.3; Asian Russia, 8.5 (all of Russia, 9).
As I was corrected on the regular thread (thanks), EU is in sq km and US is in sq miles. Surprised me that EU lower density than US, but like Canada, EU has quite a bit of low population land area near and in the arctic circle.
And have you seen lumber prices? Come on, man!
Having a farm right now is like paying fuel inflation twice. Corn has gone up 45% by the bag in the last 100 days…. Not even fuel has done that.
Futures show it doubling from here…
Thank God we have good year round grazing! Come fall we may consider planting a acre or two just to over winter.
Right back to 2015 inflation!!
RINOs have to be completely defeated, politically.
Squeezed? More like steamrolled and flattened. But hey Joe and the Democrats sent you $1400 dollars!!! (sarc)
Unfortunately, some key economic indicators, including a personal consumers expenditures index that excludes food and energy prices, suggest that inflation is rising. That’s not a great thing, especially for savers, because it means their money won’t go as far. fool – by Christy Bieber | May 4, 2021 a motley fool service
Recessions and Profit taking are both part of the free market capitalistic system. We have seen neither in 15 years. Recessions wash out the weak and profit taking is the movement of capitol known as rotation to company’s that have been out of favor. Haven’t seen any rotation since the FANG stocks took over the investment market. Most of the last 50% of the DOW and NASDAQ are just a few stocks. Take profits NOW.