View Single Post
Old 10-05-2012, 06:47   #26
Atlas
transmogrifier
 
Atlas's Avatar
 
Join Date: Oct 2001
Location: north of the equator
Posts: 14,864
Quote:
Originally Posted by c6601a View Post
Food prices are up and a likely to go MUCH higher. But it has nothing to do with the Fed. It is all due to the drought this summer and the subsequent crop failures. It will take 2 years for the prices to recover.

Everything related to petroleum is up because markets are worried about saber rattling from Iran and equally juvenile behavior out of Israel. Oil prices will crash if BOTH Ahmedin-nut-job and Nutt-n-yahoo are voted out and replaced by mature adults. That and no natural disasters or accidents that significantly impact oil production or refining.
Food prices were already rising before the drought.
Oil is the largest cost in food production.


Of course the political situation in the mid-east aggravates the oil price equation... always has.
However, the devaluation of the dollar is the single largest factor in that equation and it has everything to do with the Fed (in collusion with congress).

If you believe food prices will "recover" in two years, you will be seriously disappointed
__________________
June 28, 2012: the day the American republic died.

Uncontrolled, unaccountable government spending + Graduated income-tax = SLAVERY

Last edited by Atlas; 10-05-2012 at 07:00..
Atlas is offline   Reply With Quote