Fri 25 Apr 2008
Why I’ve Been Hoarding Food
Posted by RichSlick under The Fed
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Over the past months, I’ve been shopping at Costco and been purchasing items by the case load and storing them at home. I purchased cases of corn, soups, beans, rice, wine and other non-perishable products. My wife always questioned the wisdom of storing so much food in our house since we really didn’t have enough room for it but with some Costcos now rationing rice, flour and oil, I think it’s all beginning to make sense.
I’ve been warning about rampant inflation for quite some time now here, here, and here. Some bloggers even called my analysis bad and yet here we stand with the world rioting over food just a few short months later.
People will wake up and find that the $2000 emergency fund they saved up won’t be able to buy them much food, gas or much of anything else in the near future if inflation keeps climbing the way it is now. The US Dollar is at all time low against most major currencies and no one seems to care about that at all.
Don’t think that things will all return to normal next month either; People keep hoping that gas prices will go back down to $1.40/gallon - I hate to be the one to break it to everyone but that ain’t gonna happen - those days are long gone. There are 1+ billion Chinese and 1+ billion Indians that have tasted the good life and they’re not going to go back to their old ways - those days are long gone too. The days of cheap food and cheap energy are coming to an end unless some technological innovation shows up real soon.
I’ll be going to Costco again this afternoon to pick up some more food
and remember Soylent Green is people!
8 Responses to “ Why I’ve Been Hoarding Food ”
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April 26th, 2008 at 7:51 am
So sad and very true. I wrote about this a few days ago. I think what makes the situation a bit worse now is like you mention the weaker dollar. In the past our economy could afford to pay for imports of food, a weaker dollar makes this less affordable. Also the weaker dollar makes export markets more attractive for our producers. It is just not a good mix.
April 26th, 2008 at 8:16 am
It’s very plausible as we enter hurricane season that a hurricane blow through the gulf disrupting oil/refining supplies.
I can imagine diesel to $4 or $6 a gallon and seeing truckers strike. No truckers no food shipments to your grocer.
A brawl with Iran wouldn’t help either. Too many scenarios to cover but they’re all possible.
April 26th, 2008 at 2:29 pm
I’m quite suspicious about all these crises, because in every case, it seems like a government-induced one. What do you think?
April 26th, 2008 at 2:47 pm
The government doesn’t benefit one bit from rioting in any country so I doubt.
If things don’t get fixed soon there will be insurrection against the Federal Reserve and World banks for the hyper-inflationary processes making food un-affordable.
I won’t be surprised to see corn farmers get some of the backlash too for their ethanol subsidies when sugar would be a cheaper and better alternative.
April 27th, 2008 at 7:05 pm
I guess anything can happen this summer.
April 27th, 2008 at 7:34 pm
Rich! You and I have been talking about inflation for a long while. I remember your basket you created I believe in fall or early winter of goods; you said you’d check back in a year. I am sure it will be up 15-20%. While the govt says inflation is 2.4%
I cannot wait for them to report negative CPI. 2 months ago they had a CPI of 0.0%
Jumped “up” to 0.2% last month but thats only 2.4% annualized. Anyhow its laughable. I do pray it goes negative so we can all laugh together.
May 20th, 2008 at 5:38 am
Well i think the government does all these crisis and this for 2 reasons people reduction and more control over the people. When your starving from hunger you don’t ask questions you beg for food and water supplies to the government who can then do what they want with you and your civil rights.
PS: while the us will be rioting it will become weak against other treaths: the russians and the chinees for example who are already preparing themselfs.
What you see around you is a communist conspiracy because the us is acting against it’s own interest and that’s not logic at all this mean the disiscions are being made elsewhere…