I thought I got all my complaining off my chest in last night’s article but now I wake up to more nonsense!
Sorry, I’m trying to stay positive but… Well, come on:
"The days of cheap grain are gone," says Dan Basse, president of AgResource Co., a Chicago commodity forecasting concern. This year the prices of Illinois corn and soybeans are up 40% and 75%, respectively, from a year ago. Kansas wheat is up 70% or more. And a growing number of economists and agribusiness executives think the run-ups could last as long as a decade, raising the cost of all kinds of food.
American families, which spend 9.9% of their disposable income on food, are facing the fastest-rising food prices in 17 years. The consumer’s cost for everything from yogurt and popcorn to breakfast cereal and fast-food french fries is climbing. In U.S. cities last month, the average retail price of a pound loaf of whole-wheat bread was up 24% from a year ago, according to the Bureau of Labor Statistics. Whole milk hit $3.807 a gallon, up 26%
"We’re in uncharted territory," says Christopher Fraleigh, chief executive of the food and beverage division of Sara Lee Corp., which earlier this month raised its bread prices 5%. To cope, General Mills is shrinking the size of its breakfast-cereal packages, effectively raising the price per ounce. At a Dominick’s supermarket in suburban Chicago, a 15.6-ounce box of Wheaties recently cost $5.16, more per ounce than the round steak London broil at the meat counter. Grain typically has accounted for a small part of the cost of packaged products like bread and ready-to-eat cereals.
That’s the creeping "shadow inflation" we get at the early stages of an inflationary cycle. The cereal box is smaller, the restaurant cuts back on bread, the Whopper shrinks, the car has less features, the movie has less special effects… This is how an economy can collapse all around you and you don’t actually realize it until it’s too late to do anything about it.
For instance, making fuel out of food is MONUMENTALLY STUPID and is causing more inflation than it cures. While it’s great for DE, MON, DD and the Midwest farming constituency (big Bush contributors) it is devastating for…