Originally Posted By: Dave Vedder
And another opinion on why food prices are rising

"J.P. Morgan says that even in the face of recent food price gains, they expect prices to move higher still over the next few months, due to low inventories and slack production. The brutal weather of recent weeks, ranging from cyclones and floods in Australia to uncommonly cold weather in the Southern U.S. and Mexico, has made the agricultural climate even rougher.

Will that have an impact on inflation? In the developed world, the answer is probably not. Agricultural staples make up a surprisingly small amount of consumer inflation measures because of efficiencies in production. The calculus for emerging markets is different. And already food and energy costs are contributing to inflation spikes in China (around 5%), Brazil (5%) and India (9%)."

So maybe its just normal market supply and demand. Maybe no gubmint plot.

I am constantly amazed by folks who think the government can't do anything right but still attribute huge comlex conspiracies to the government.


You know what Dave,..... you and Dan are right,,.... what was I thinking. All this broad spectrum price inflation is just normal market supply and demand.

No way in hell could it be the 50% increase in M3 from '06 - '09.

Snow storms and lack of inventory. That explains the over 100% YOY price increases in a whole slough of commodities. Coupled with 10% unemployment,........musta been one hell of a storm.

Although, if JP Morgan Chase says so then it just has to be true. They're a pretty reputable institution anyhow grin

When reading their statement above though one should be careful to understand what this little tidbit means;

"Agricultural staples make up a surprisingly small amount of consumer inflation measures because of efficiencies in production. The calculus for emerging markets is different."

What's this ????? We don't use food staples as inflation measures because of seasonal production fluxuations ????? Of course not, we don't want the dolts to know when their getting phucked. Ahhh but other countries don't really give a chit because they'll just toss ya in the laogai for a little re-edumacation. Those countries are experiencing 5-9% inflation?

Hmmm which countries do we export most of our dollars to again?
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