Friday, March 7, 2008

Well, at least we'll all be thin.


There are frightening things a'brewin in the global commodities markets. These global markets are exponentially smaller than stock and bond markets in terms of money and investors, so they're not getting as much media face time. But several factors are working together to create a perfect scenario for worldwide ... famine.

I wish I were kidding. Here are just a small smattering of the predicaments we're getting ourselves into:
- Americans are fanatic in our attempts to find alternative, sustainable fuel sources. The 'alternative' we've come up with (corn) is raiding our food supply.
- Because demand is so high, which makes prices sky high, farmers are planting corn, corn, CORN! But guess what? That means their acres are all in CORN - even the acres they used to devote to wheat and soybeans. Which leads us to ...
- a shortage not only of corn (because besides eating it, now we're burning it for fuel too, and farmers can't keep up with demand), but of wheat and soybeans as well! So, due to a supply shortage, prices for THOSE commodities go up.
- Now. Because cattle, hog, and other animal farmers use corn, wheat and soybeans to feed their animals to get them ready for the consumer to eat, those farmers have to pay MUCH higher prices to continue to do that. Therefore, U.S. meat producers aren't going to be able to make any money, so they'll sell everything and get out of the business. But guess who are the only ones right now who can afford the skyrocketing price of land? Crop farmers. So, who's going to raise meat for Americans to eat? Not America.
- Add to these things the plummeting dollar. Which means that OTHER countries are able to buy our exports, but it's becoming increasingly difficult for US to buy our OWN commodities.
- Heap onto that a growing global population.
- Heap onto that a number of weather problems in typically agriculturally productive areas of the world.

It's terrifying, really, where all this is leading. Honestly, I see a renewed interest in gardening. Ye gods, with my black thumb, I'll never survive.

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