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Already Record Food Prices Rise By 3.4% In January

Tyler Durden's picture





 

When last month we highlighted the FAO's periodic report which noted that food prices had surged to a fresh all time high, Zero Hedge first predicted that food riots were imminent. Fast forward 6 rioting countries and 2 revolutions later, to today when we get an update from the UN's Food and Agriculture Organization, where we read that, not surprisingly "the FAO Food Price Index (FFPI) rose for the seventh consecutive month, averaging 231 points in January 2011, up 3.4 percent from December 2010 and the highest (in both real and nominal terms) since the index has been backtracked in 1990." And while it is painfully obvious to anyone who shops for groceries, but not to Genocide Ben, nothing is ever obvious to him, here is Reuters' take on the numbers: "Up for the seventh month in a row, the closely
watched FAO Food Price Index touched its highest since records began in
1990, in nominal terms, and topped the high of 224.1 in June 2008,
during the food crisis of 2007/08
." Yes, oil may not be at its all time highs from the summer of 2008, but food has already surpassed it.

A graphic presentation of what guarantees many more revolutions, courtesy of Gen Ben:

More from Reuters:

Surging food prices have come back into the spotlight after they helped fueled protests that toppled Tunisia's president in January. Food inflation has also been among the root causes of protests in Egypt and Jordan, raising speculation other nations in the region would secure grain stocks to reassure their populations.

Severe drought in the Black Sea last year, heavy rains in Australia and dry weather in Argentina and anticipation of a spike in demand after unrest in north Africa and the Middle East has helped power grain prices to multi-year highs.

The FAO's Sugar Price Index soared to a record high of 420.2 points from 398.4 points in December.

Its Cereals Price Index, which includes prices of main food staples such as wheat, rice and corn, rose to an average of 244.8 points in January, the highest level since July 2008 but below its peak in April 2008, the data showed.

The Oils Price Index rose to 277.7 points in January from 263.0 points in December and came close to the June 2008 record level.

On the other hand, the anger which will sooner or later be focused on none other than Ben Bernanke for starting a wave of global revolutions, may be diluted a little bit after JC Trichet said during a media press conference earlier that "inflation is contained." It appears he is also 100% confident that years of pent up hunger and anger can be eliminated with a 15 minute waving of a magic wand.

As usual, keep an eye on cotton, wheat and rice: with central bankers now stuck firmly in denial, these are the only indicators that matter.


 


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Thu, 02/03/2011 - 10:13 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

"Pay no attention to the inflation behind the curtain. I am the mighty Ponzi OZ."

Ben Bernanke practicing in front of the mirror.

Thu, 02/03/2011 - 10:28 | Link to Comment eigenvalue
eigenvalue's picture

Guess the ultimate fate of the Bernank would be neither a guillotine or an electric chair. He would be eaten alive by hungry citizens..

Thu, 02/03/2011 - 10:59 | Link to Comment SilverDOG
SilverDOG's picture

As he is only an actor performing for; borrowers from, owners of, and the slaves cowering below, FLS Federal Loan Shark.

Thu, 02/03/2011 - 11:13 | Link to Comment Turd Ferguson
Thu, 02/03/2011 - 11:32 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Blythe and The Monkeys.

Sounds like an acid rock bank from the 70's. Could you hum a few bars so I can see if it sounds familiar? :>)

Pictured below is the band during the early years. Blythe is on the left.

Thu, 02/03/2011 - 11:35 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Too bad she doesn't still wear diapers.  I am sick of her sh*t!

Thu, 02/03/2011 - 11:32 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Today, will PMs form a W, or a checkmark?  They are going up from here no matter.  Silver likes support at $28, the dollar is dead, and Bernanke is typing his resume as we speak...

Dear Lloyd,

......

Thu, 02/03/2011 - 11:48 | Link to Comment ColonelCooper
ColonelCooper's picture

Turd,

Got room on the right side of that page to squeeze in oil? 

Thu, 02/03/2011 - 12:49 | Link to Comment Clayton Bigsby
Clayton Bigsby's picture

Congress blames "wicked" speculators in... 3... 2... 1....

Thu, 02/03/2011 - 10:13 | Link to Comment Xibalba
Xibalba's picture

Pakistan will fall next. 

Thu, 02/03/2011 - 10:25 | Link to Comment Sudden Debt
Sudden Debt's picture

The exiting part is picking the continent which will have the most food riots in 2011.

 

So at horse track:

Africa is the favorite and is running in front of the rest but Asia is comming out of the curve with lightning speed! America and Europe are picking up speed as well but they are still way behind...

Thu, 02/03/2011 - 10:30 | Link to Comment oogs66
oogs66's picture

What countries has China purchased the most farmland in?  I can't wait for a food riot in one of those countries so China has a good excuse to send in the troops to protect their food supply.

Thu, 02/03/2011 - 11:07 | Link to Comment Sudden Debt
Sudden Debt's picture

Ethiopia and Zaire.

Thu, 02/03/2011 - 12:47 | Link to Comment tmosley
tmosley's picture

Oh shit, the Chinese have time travel?

Fri, 02/04/2011 - 10:18 | Link to Comment Matt
Matt's picture

I guess that's what they meant about leap-frogging past the west. Now they can go back in time and invent things before the west, putting themselves even further ahead. If you aren't long China, it'll be too late as we will have already passed their boom phase and they will already be going bust.

Thu, 02/03/2011 - 10:54 | Link to Comment whatsinaname
whatsinaname's picture

If Pakistan falls, India and China will not be far behind. DBA is really skying now..

btw..wonder if there are are some massive derivatives tied to a certain level of the S&P500 which TPTB want to achieve w/o which it would be a disaster. These derivatives may have been written in the cocky and golden times of 1995-2008. BRK already has something similar ?

Thu, 02/03/2011 - 11:04 | Link to Comment Agent P
Agent P's picture

"Pakistan will fall next."

Scary thought...although I'd wager their military would act a little differently than Egypt's has if it comes to that.

Thu, 02/03/2011 - 12:21 | Link to Comment hardcleareye
hardcleareye's picture

If Pakistan falls, what happens to it's nukes?  Is there a contingency plan in place?  If I recall those nukes were aimed at India, and India's are aimed at Pakistan.  I haven't read much about the current tension levels between India and Pakistan lately, perhaps it's cooled or is it foreshadowed by other regional events?

Fri, 02/04/2011 - 10:22 | Link to Comment Matt
Matt's picture

hopefully the situation is being overshadowed, because if other regional events are foreshadowing, that would be bad.

Thu, 02/03/2011 - 10:15 | Link to Comment ak_khanna
ak_khanna's picture

The primary thing driving up commodity prices worldwide are speculators armed with cheap money provided by central bankers and super fast computers. This is causing a havoc in the lives of rest of the population and pushing them towards poverty as they can no longer afford the basic necessities of life.

Regulators are either hand in glove with the banksters or are too slow to react and take ages to identify and take measures to solve the problems.

Total ban on speculation and the reinforcement of Glass Steagall Act is strictly required to bring relief to the man on the street.

http://www.marketoracle.co.uk/Article24581.html

Thu, 02/03/2011 - 10:19 | Link to Comment the not so migh...
the not so mighty maximiza's picture

I forgot where I saw it, but the British allready told Obama that if he re installs Glass Steagal, it would be considered an act of war against the crown.  

Thu, 02/03/2011 - 10:34 | Link to Comment equity_momo
equity_momo's picture

Huh? Care to elaborate? 

Thu, 02/03/2011 - 12:15 | Link to Comment hardcleareye
hardcleareye's picture

A quick google, it is position/opinion of the La Rouche Pac...  don't know how "creditable" or realistic it is....

http://politicalvelcraft.org/2010/10/17/simple-passage-of-the-glass-steagall-act-america-nulls-voids-obamas-counterfeit-debt-britain-threatens-war/

Thu, 02/03/2011 - 10:32 | Link to Comment Caviar Emptor
Caviar Emptor's picture

Sorry, that's always the first scape goat every time this happens. And prices have never returned to prior levels no matter what measures are taken to cut 'speculation'. The overwhelming bulk of it is this: Global Competition for Limited Resources. And in some cases declining resources. 

Big economies are getting bigger and more populated. Demand is outstripping supply and production in almost every category across the board. Many key commodities are long past their peak production levels. And outright depletion is beginning to appear in some notable areas. The US imported and spent more than it produced on a grand scale for decades and that put lots and lots of money into the hands of trading partners. And to maintain a neo-colonial empire to make it all happen you need to spread plenty of gravy around. Petro dollars, Euro dollars, China dollars.....there's an ocean of dollars out there and it's starting to be spent instead of saved by developing nations. The days of cheap commodities is OVER

Thu, 02/03/2011 - 10:51 | Link to Comment Flakmeister
Flakmeister's picture

  Wholeheartedly agree...

 The signs have been there for a while, e.g. decreasing average Cu grades, decreasing average API, increasing Sulfur content etc... It was only a matter of when when we reached the economic inflection point.

Thu, 02/03/2011 - 11:09 | Link to Comment chumbawamba
chumbawamba's picture

MOTHER FUCKING COPPER BITCHES!!!!!!!

I am Chumbawamba.

Thu, 02/03/2011 - 10:15 | Link to Comment RobotTrader
RobotTrader's picture

I'm expecting that the central banks will once again assemble some type of  "dollar swap line" that will trigger another Don Coxe "Midnight Massacre" in the CRB Index.

TPTB is going to take action soon to quell the speculation in these food commodities.

Thu, 02/03/2011 - 10:23 | Link to Comment Flakmeister
Flakmeister's picture

Hey Robo, did you pick up any FRG on its recent pull back? NEM announced a friendly buyout today at $14....

Thu, 02/03/2011 - 10:24 | Link to Comment Misean
Misean's picture

Well, yeah, someone's going to have to drive the hot money out of these commodities. Still, a good chunk of the price spike is supply related. Not going to be as easy as busting Goldman Sucks 2008 oil bubble...

Thu, 02/03/2011 - 10:37 | Link to Comment Caviar Emptor
Caviar Emptor's picture

Won't work, can't work. Supply is constrained, demand is rising. And if you lower the price temporarily and marginally with rules you know what will happen?? CHina will scoop up and stockpile on the cheap using all that ocean of dollars they have. And so will all the developing nations with all their dollars. In fact everyone will because that will be a golden opportunity. 

Thu, 02/03/2011 - 11:18 | Link to Comment chumbawamba
chumbawamba's picture

Start stripping and stockpiling the copper pipe and wire out of all those abandoned over-built homes in the extended suburbs.

Oops, too late, the tweakers beat you to it.  It's all in China already.

I am Chumbawamba.

Thu, 02/03/2011 - 11:45 | Link to Comment serotonindumptruck
serotonindumptruck's picture

Certainly not a tweaker, but I did obtain salvage rights on an early 20th century school-house a couple years ago. I was amazed at the amount of single gauge copper wiring in the place. Had to wear a good respirator, though. The asbestos weave on that wiring was THICK.

Anyway, not a bad payday for a couple of days worth of labor.

The real Cu salvage prizes are the old transformer coils. I'm talking upwards of 100 pounds of shiny, pristine copper. The downside is disposing of the (poly-chlorinated biphenyls) coolant. An excellent lubricant, but its persistence in the environment makes improper disposal a Federal lock-up offence.

Thu, 02/03/2011 - 12:01 | Link to Comment chumbawamba
chumbawamba's picture

I once stripped down a largish 3-phase UPS system.  It had two transformers, three coils of copper a piece (for each phase).  The coils on the larger of the two were 70+ pounds each.

Oh yes, that was a nice payday in deed ;)

I predict $10/lbs copper by this summer.

I am Chumbawamba.

Thu, 02/03/2011 - 12:18 | Link to Comment serotonindumptruck
serotonindumptruck's picture

Don't know why somebody would junk you.

Do I get one, too? Please?

Thu, 02/03/2011 - 14:29 | Link to Comment Ms. Erable
Ms. Erable's picture

Junked not for content, but because you asked so nicely.

Thu, 02/03/2011 - 10:42 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

They do so when they raise the price of the dollar.  Unfortunately PMs follow.  But they are happy to block oil from appreciating...for now.

Thu, 02/03/2011 - 10:44 | Link to Comment Robot Traders Mom
Robot Traders Mom's picture

Thanks for not posting one of your stupid yahoo finance charts. Also, stick with tech stock analysis. You obviously grew up in the California school system.

Thu, 02/03/2011 - 10:49 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I thought for sure he would have JWN up by now...

Thu, 02/03/2011 - 11:20 | Link to Comment ClassicalLib17
ClassicalLib17's picture

Hey, you're one good looking mama there. How about we get together for a Dairy Queen Blizzard for dessert. Can't afford the whole meal as I am currently unemployed.

Thu, 02/03/2011 - 11:22 | Link to Comment chumbawamba
chumbawamba's picture

I grew up in the California school system as well (LAUSD REPRESENT!)

That explains everything.

I am Chumbawamba.

Thu, 02/03/2011 - 12:02 | Link to Comment hardcleareye
hardcleareye's picture

Good to see your keeping an eye on your boy, we appreciate it.

Thu, 02/03/2011 - 12:32 | Link to Comment pods
pods's picture

Now what were you doing emailing the Italian MP?

pods

Thu, 02/03/2011 - 10:16 | Link to Comment mynhair
mynhair's picture

Lol, Ponzi oz.

Thu, 02/03/2011 - 10:16 | Link to Comment gwar5
gwar5's picture

I''m stocked up. I'll get more from the local Food Lion now that they're in the money losing business.

Thu, 02/03/2011 - 10:31 | Link to Comment Shocker
Shocker's picture

If they raise the prices, then they shrink the packaging. 90% of the companies that shrink the packaging I no longer buy from. The real losers in this battle are the people that are already struggling, this just beats them down more.

http://www.dailyjobcuts.com

Thu, 02/03/2011 - 10:17 | Link to Comment Everybodys All ...
Everybodys All American's picture

Can someone just hurl a stone at Berrnanke for me.

Thu, 02/03/2011 - 10:19 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

FAO Food Price Index Bitchez!

Thu, 02/03/2011 - 10:20 | Link to Comment Quinvarius
Quinvarius's picture

On a lizard brain level, I am a big fan of exporting our misery rather than suffering from it.

Thu, 02/03/2011 - 10:35 | Link to Comment Overflow-admin
Overflow-admin's picture

I guess you were thinking of "reptilian brain level" or "primitive brain level". But is that outrageously real or creeping sarcasm?

Thu, 02/03/2011 - 10:51 | Link to Comment Quinvarius
Quinvarius's picture

I tried to answer this, but it turned into a long tract of dark self analsis.  I am now smoking a cigar, while sitting on the toilet, and talking to my mom on the phone.

Thu, 02/03/2011 - 11:00 | Link to Comment MachoMan
MachoMan's picture

He probably read reptile...

Thu, 02/03/2011 - 10:21 | Link to Comment Robslob
Robslob's picture

The Ben Bernank does not:
1) Eat
2) Feel
3) Smell
4) Shit
5) or care....

The Bernank IS the 3rd Anti-Christ hidden in bankers clothing....

Thu, 02/03/2011 - 10:28 | Link to Comment Golden monkey
Golden monkey's picture

Food price about to skyrocket in America (and the world is on the verge of a massive shortage).

Let's stockpile and fly together.

http://www.youtube.com/watch?v=Yki4axNNqkI

 

 

Thu, 02/03/2011 - 11:32 | Link to Comment chumbawamba
chumbawamba's picture

I submit that he is not "hidden".

I am Chumbawamba.

Thu, 02/03/2011 - 10:22 | Link to Comment bigelkhorn
bigelkhorn's picture

I think that the PIIGS are in deep strife in 2011.
Alot of people think we are doomed, but there are still great ways to make money.

I subscribe to the FFT newsletter at http://www.forecastfortomorrow.com that guy is calling for a bigger event to come in the next few months. His oil calls are insane, and I have been making good money with that.

Start stocking up on gold people!! Do it yesterday.

Thu, 02/03/2011 - 10:22 | Link to Comment TheGreatPonzi
TheGreatPonzi's picture

Do you think the gold-hater deflationists will now eat their Federal Reserve Notes?

Thu, 02/03/2011 - 10:31 | Link to Comment Sam Clemons
Sam Clemons's picture

There certainly isn't a shortage of those!  Unfortunately, I'd imagine the notes are made using toxic paper and ink so we'll get out and spend them more quickly.

Thu, 02/03/2011 - 10:39 | Link to Comment Zero Govt
Zero Govt's picture

I'm a deflationist and in Gold and in Fed reserve notes (Dollars). Please try harder with your pigeon holes, a little less cliche please

Thu, 02/03/2011 - 10:51 | Link to Comment TheGreatPonzi
TheGreatPonzi's picture

I have both gold and paper money too, but I was referring to the hardcore deflationists who think even gold will lose value in a deflationary environment (thus ignoring the long history of decreed money devaluations - 1930s Front Populaire in France, for example, or 2002 Argentina -, the performance of gold stocks during the Great Depression, and central bank failures).

Thu, 02/03/2011 - 10:58 | Link to Comment Zero Govt
Zero Govt's picture

Deflation basically means contraction in the money supply (which should include credit/debt but the academics don't allow it). When deflation happens money (inc. credit) implodes and sucks the value out of all asset classes, including Gold. Gold does best during inflation because like all asset classes it rides higher floating on increased money to invest across the board. Gold stocks did well during the 1929 Depression because the US Govt fixed the price and confiscated both pure gold and many mines if memory serves me correctly

Thu, 02/03/2011 - 11:05 | Link to Comment TheGreatPonzi
TheGreatPonzi's picture

Lol, thanks for the lecture, Captain Obvious.

"Gold stocks did well during the 1929 Depression because the US Govt fixed the price and confiscated both pure gold and many mines if memory serves me correctly"

This is the strangest explanation I've heard yet, knowing that gold confiscation only happened in 1933. Gold stocks performed very well way before this date.

You obviously don't know your subject, so please don't try to argue with me.

Thu, 02/03/2011 - 12:52 | Link to Comment tmosley
tmosley's picture

Gold does well during deflation as well.

You should re-examine your assumptions.  At least one of them is wrong.

Thu, 02/03/2011 - 10:44 | Link to Comment tmosley
tmosley's picture

Deaf, dumb, blind, and numb, too, no doubt.

Does hunger count as a sense?

Thu, 02/03/2011 - 10:51 | Link to Comment TheGreatPonzi
TheGreatPonzi's picture

Who is the dumb fuck junking me?

Thu, 02/03/2011 - 11:36 | Link to Comment chumbawamba
chumbawamba's picture

I gave you one for asking such a narcissistic question.

I am Chumbawamba.

Thu, 02/03/2011 - 10:23 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Ben does not shop for groceries.  This is the best part of the divide.  Rich people have no idea what is about to happen because they are out of touch with society.  On the other end of the spectrum, the poor, are wildly entertained by such trivialities as the Super Bowl (by the way I understand the game, I love sports, but sport is never a way of life, it is only and always a game) and instead of asking for their rights back, they demand hand outs.  This divide is what has created the opportunity for the oilgarchs to drop the economy in the Fall of '08 and ready the police state for over the last two years.  Also, the dollar has been rushed to the hospital and the medical equipment is made of precious metals.

Thu, 02/03/2011 - 10:25 | Link to Comment Watauga
Watauga's picture

The remaining Middle/Working Class is in the way, of course.  How best to get rid of it?  Ask Obama--it is what he has trained his entire life to do, and he is doing a pretty darned good job of it.

Thu, 02/03/2011 - 10:22 | Link to Comment fragrantdingleberry
fragrantdingleberry's picture

I just heard that McDonald's was changing the name of its Big Mac to the Slider.

Thu, 02/03/2011 - 10:22 | Link to Comment Watauga
Watauga's picture

Okay, so buy DBA, MOO, ADM. . .?

Buy heirloom seeds, good farmland, and some tools (a good tractor, for example)?

Buy physical gold and silver as a hedge and in case it is needed if the SHTF?

What moves are you making here?

Thu, 02/03/2011 - 10:25 | Link to Comment Flakmeister
Flakmeister's picture

I have been in DBA since Jan 10.... avg. cost about $25.50.... hee, hee, hee

Thu, 02/03/2011 - 10:34 | Link to Comment Sam Clemons
Sam Clemons's picture

I was going to load up on RJA around the same time, but then decided it just doesn't feel right to profit from others' misery. 

Pride cometh before a fall.

 

Thu, 02/03/2011 - 10:55 | Link to Comment Flakmeister
Flakmeister's picture

  It was a hedge of sorts. I believe in allocated expense investing as means of wealth management, e.g. if you figure you will use 1200 bbl of oil over the rest of your life, buy it now (at least the cash flow). Same goes for food, tough the buy the cashflow, hence the need for DBA. Another example is to buy your local utility such that the divvy flow covers the monthly bill. I regret that I also recommend MO and RAI for some of my clients...

Thu, 02/03/2011 - 11:46 | Link to Comment Agent P
Agent P's picture

My biggest expense is my wife...should I go long some sort of retail index?

Thu, 02/03/2011 - 11:57 | Link to Comment Flakmeister
Flakmeister's picture

Victoria's Secret??

Thu, 02/03/2011 - 12:07 | Link to Comment Agent P
Agent P's picture

If that were the case, I wouldn't be complaining about it.

Thu, 02/03/2011 - 10:27 | Link to Comment ipud
ipud's picture

Not ready to buy the farm just yet.

http://www.youtube.com/watch?v=WCwWfSYBwOQ

Thu, 02/03/2011 - 11:55 | Link to Comment hardcleareye
hardcleareye's picture

If your going to buy farm land be mindful of the property taxes and future property tax liabilities...  with state budget cuts the local muni are getting squeezed, school property taxes will see a big hit....  some places have ag exemptions but you must qualify and if things get tight the tax man will come after the farmers.

 

Thu, 02/03/2011 - 10:25 | Link to Comment Josephine29
Josephine29's picture

I have pointed this out before and it is interesting to see that the mainstream media is beginning to catch up with us. An economist who has been on the ball thinks this.

Commodity prices have continued their recent rises with the CRB spot index up a further 1.77 to 558.28 yesterday which is yet another recent high. If we take a look at the foodstuffs component it has now risen to 487.6. So those struggling to feed themselves in Egypt will find that the problem is getting worse as this latest surge in food prices which started in late November came from 400 on the foodstuffs index giving us a rise now of just under 22%.

 

http://notayesmanseconomics.wordpress.com

 

Thu, 02/03/2011 - 11:10 | Link to Comment hardcleareye
hardcleareye's picture

I enjoyed the link, thank you

Thu, 02/03/2011 - 10:24 | Link to Comment dick cheneys ghost
dick cheneys ghost's picture

texas borrowing electricity from mexico. its official, we are a joke of a country  

 

http://nakedempire.wordpress.com/

Thu, 02/03/2011 - 11:44 | Link to Comment chumbawamba
chumbawamba's picture

We are now the Mexico of North America.

Mexicans would be particularly insulted by that statement.

I am Chumbawamba.

Thu, 02/03/2011 - 10:25 | Link to Comment Ancona
Ancona's picture

When those SNAP cards no longer provide enough food for those who have mysteriously "fallen off" the unemployment rolls......put all of your money in to pitchforks.

Thu, 02/03/2011 - 12:40 | Link to Comment pods
pods's picture

I would rather keep it in a P226 in 40 S&W, for those people who cannot afford to eat will be looking at the populace as a whole to subsidize their lifestyles.  Get a big Fila and stock up on ammo.

If we get extremely lucky, we can grab the pitchforks and boiled hemp, but really, we are no Egypt.

pods

Thu, 02/03/2011 - 10:25 | Link to Comment insidious
insidious's picture

I love all the adjusted numbers in every financial report. On the FAO Food Price Index we have Nominal and Real numbers. The "Real" price index IS the Nominal price index deflated by the World Bank Manufacturers Unit Value Index (MUV).

 

Right! WTF! - is there no number that they just report as is? It seems that every reported number is twisted and contorted a hundred different ways. Then they take the contorted numbers and compare them to "expected" numbers (pulled out of someone's "hat") and decide if its a good thing or a bad thing. WAM (what a mess)!

Thu, 02/03/2011 - 10:33 | Link to Comment topcallingtroll
topcallingtroll's picture

Numbers are complicated and to report in isolation without a comparison with other products by the proxy muv is misleading. Looking at both is useful.

Thu, 02/03/2011 - 10:30 | Link to Comment topcallingtroll
topcallingtroll's picture

If I were an elliot wave dude this chart might scare me a bit. I still have my money on real gdp. If this is out of control inflation versus either speculative excess or a one off adjustment then it will show up in the core eventually. It is probably the grand rebalancing as the prices of food and stuff with inelastic demand goes up and houses go down and we meet somewhere in the middle.

Thu, 02/03/2011 - 10:30 | Link to Comment AccreditedEYE
AccreditedEYE's picture

Can we PLEASE round up these global mobs, bring them to the U.S. and stick them in front of 85 Broad and the NY Fed?

Thu, 02/03/2011 - 10:35 | Link to Comment SheepDog-One
SheepDog-One's picture

Just a shame that america is now so demoralized and placated theyll actually just sit home and starve instead of actually going out and stopping all of this crap. All over I see video saying we support the protesters in Egypt...americans think its another reality show!

Thu, 02/03/2011 - 10:56 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I like to blame the medical profession.  They should be the ones to stop the  genecide being done by Fluoride..Xanex...how is it that the people that are supposed to be learned are even dumb?

America is complacent.  Until they aren't.

Thu, 02/03/2011 - 12:05 | Link to Comment Agent P
Agent P's picture

Are you suggesting we outsource the revolution? </sarc>

No offense to you, SheepDog-One, or any other ZH'er calling for protests, but when was the last time you were out in front of GS or the NYF protesting?  Why don't you guys actually go do it?  Seriously, I'm not trying to pick a fight here, I'm just saying if you want a protest, then go protest.

Thu, 02/03/2011 - 12:24 | Link to Comment LFMayor
LFMayor's picture

I don't just want a protest man.  If you're going to do something then do it correctly.
I want a White Riot.
A riot all my own.

Thu, 02/03/2011 - 20:41 | Link to Comment Cathartes Aura
Cathartes Aura's picture

White riot - I wanna riot
White riot - a riot of my own
White riot - I wanna riot
White riot - a riot of my own

Black people gotta lot a problems
But they don't mind throwing a brick
White people go to school
Where they teach you how to be thick

An' everybody's doing
Just what they're told to
An' nobody wants
To go to jail!

All the power's in the hands
Of people rich enough to buy it
While we walk the street
Too chicken to even try it

Everybody's doing
Just what they're told to
Nobody wants
To go to jail!

Are you taking over
or are you taking orders?
Are you going backwards
Or are you going forwards?

More lyrics: http://www.lyricsmania.com/white_riot_lyrics_clash_the.html
All about Clash The: http://www.musictory.com/music/Clash+The

Lyrically, the song is about class economics and race and thus proved controversial: many people thought it was advocating a kind of race war.[1] Rather, lyricist Joe Strummer was trying to appeal to white youths to find a worthy cause to riot, as he felt blacks in the UK already had. It contains a positive message in the lines "Are you taking over / Or are you taking orders? / Are you going backwards / Or are you going forwards?"

The song was written after Joe Strummer and bassist Paul Simonon were involved in the riots at the Notting Hill Carnival of 1976.[1]

 

here's hoping that was meant in the spirit the author's intended.

posted for clarity, in these times of drawing lines & pickin' sides.

Thu, 02/03/2011 - 14:52 | Link to Comment AccreditedEYE
AccreditedEYE's picture

Hi Agent. Look, I'm 100% for inflicting any pain and agony I can on the bastards that blew us up. The effect of me and my "pitchfork" in front of Goldman's HQ won't have the same effect as me and, say, a couple thousand of my closest friends. But I hear where you're coming from.

Thu, 02/03/2011 - 10:34 | Link to Comment william the bastard
william the bastard's picture

Priced in gold, food prices are up 24% in January.

 

Thu, 02/03/2011 - 11:22 | Link to Comment tmosley
tmosley's picture

Priced in terms of the number of one liners dropped by you and your sock puppets, food is down 47%.

But then, you can't eat comments by dumbshit trolls.

Thu, 02/03/2011 - 10:44 | Link to Comment SimpleSimon
SimpleSimon's picture

OK, fess up, who is the dude on ZH who is embossing their dollar notes with words like "End the Fed", "Bring back the Gold Standard"....those notes are circulating...takes away my happy illusions....:-)

Thu, 02/03/2011 - 11:01 | Link to Comment The Profit Prophet
The Profit Prophet's picture

What a great idea......black marker "V" on every FRN we touch!!!

Down with the Kleptocracy bitchez!!!!!!

Thu, 02/03/2011 - 20:45 | Link to Comment Cathartes Aura
Cathartes Aura's picture

"some" here have even invested in rubber stampers. . . ^^

Thu, 02/03/2011 - 11:43 | Link to Comment Just Observing
Just Observing's picture

Not me....my red stamp says "Backed only by thin air"

Thu, 02/03/2011 - 10:49 | Link to Comment fragrantdingleberry
fragrantdingleberry's picture

The Bernank told 60 Minutes he was 100% confident he could sop up liquidity before inflation took hold. By his definition, commodities price inflation is not caused by monetary inflation so it's not a problem......unless you need to feed your family.

Thu, 02/03/2011 - 10:49 | Link to Comment DonnieD
DonnieD's picture

Genocide Ben murder count over 300 now. Can we track this on ZH? 

Thu, 02/03/2011 - 11:56 | Link to Comment Sheriff Douchen...
Sheriff Douchenik from AZ's picture

+1000... since no one in the MSM will hold him accountable for the food inflation genocide.  This should be a front page count.

Thu, 02/03/2011 - 10:49 | Link to Comment Youri Carma
Youri Carma's picture

Fed’s Lockhart sees only gradual inflation rise, 31 January 2010, by Greg Robb (MarketWatch) http://www.marketwatch.com/story/feds-lockhart-sees-only-gradual-inflation-rise-2011-01-31-122260

LOLz – These people are realy detached from reality with their BS core inflation measure while Oil is spiking up which is not included in FED’s perspective. Same with Food.

Thu, 02/03/2011 - 10:51 | Link to Comment Spigot
Spigot's picture

Its quite funny that those who pay attention to numbers provided by entities like governments, rating agencies, etc do not recognize that Power relates to numbers differently; as a means and certainly not in any way as a restraint.

Obfuscation and manipulation via the issuance and revision of numbers is a means to their intermediate ends, which is power.

Probably the best we can get from the numbers is indirect understanding of their goals.

Thu, 02/03/2011 - 10:54 | Link to Comment The Count
The Count's picture
Hey, excluding food, energy, cigarettes, booze and PM there IS NO INFLATION. When will you grumpy pants complainers finally get it. 
Thu, 02/03/2011 - 10:54 | Link to Comment Common_Cents22
Common_Cents22's picture

Beef prices stable, just use Taco Bell beef filler.

Substitution bitches!

Thu, 02/03/2011 - 10:59 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

+1

Thu, 02/03/2011 - 11:03 | Link to Comment The Count
The Count's picture

Hedonics?!

Thu, 02/03/2011 - 11:04 | Link to Comment Zero Govt
Zero Govt's picture

Can I just point out to all the inflationists the little matter of the chart above and the massive kick in the groin the inflation wave had in 2009. That was a direct result of deflation, the 2007 Credit Crunch which was/is deflation in a nutshell.

When Credit Crunch II hits, which will be harder and heavier than CC-I, deflation is going to make an even bigger mess of the chart above 

Thu, 02/03/2011 - 11:10 | Link to Comment TheGreatPonzi
TheGreatPonzi's picture

And do you think the world central banks will allow the deflation to happen? LMAO.

There is a physical limit to the amount of money that can be destructed, but no physical limit to the amount of money that can be created ex nihilo.

Thu, 02/03/2011 - 11:18 | Link to Comment waldocktrades
waldocktrades's picture

Our commodity market analysis suggests the same thing. We pointed out some other factors as well, here.

http://blog.commodityandderivativeadv.com/2011/01/14/food-inflation-is-h...

Thu, 02/03/2011 - 11:28 | Link to Comment Zero Govt
Zero Govt's picture

When you say "food inflation is here to stay" can i point you to the above chart and request you put your glasses on. Do you see an almighty deflationary dip in 2009? So when you say the inflation trend is set to continue do you mean all you can see is up? ...when in fact there was a huge lot of down!

Thu, 02/03/2011 - 11:28 | Link to Comment Zero Govt
Zero Govt's picture

TheGreatPonzi

No the Central banks as far as i'm concerned are out of the game, bit-part players in effect. Because they control money supply which is outnumbered and out-gunned 40/1 by retail banks credit (debt) inflation. It is this debt mountain when the levy breaks will collapse like a Led Zepplin. So i don't give a shit if the dazed and confused crone Ben Bernanke doubles, triples or even quadruples his balance sheet again, he'll get trampled underfoot and a custard pie in the face for thinking he can control the economy and reflate it

Thu, 02/03/2011 - 11:19 | Link to Comment IdiotsOutWalkin...
IdiotsOutWalkingAbout's picture

I have been trading SGG and CORN ETF's because Fidelity won't let me trade options in my IRA account. What is the best way to trade Rice and Wheat without futures or options?

Thu, 02/03/2011 - 11:30 | Link to Comment Mad Max
Mad Max's picture

When the whole world realizes that Bernanke is to blame for everything, do you think we'll be able to settle up with them by just offering Bernanke and calling it even?

Thu, 02/03/2011 - 11:39 | Link to Comment americanspirit
americanspirit's picture

Poor people can't buy food. Not that they 'can't afford it"; they can't buy it period. Zero money. Of the 104 million children under 5 who die each year, over half die of protein energy malnutrition. Not enough food, too much leaves and dirt in their swollen little bellies. Lots of inflation-related numbers tossed around, but only one really matters - 52+ million children die every year because they don't get anything to eat. And Lord knows how many hundreds of millions are crippled for life by chronic PEM. Talk about a holocaust. That's a lot of little bodies lying at Bernanke's feet. This man and his banker friends are literally monsters.

Thu, 02/03/2011 - 12:23 | Link to Comment serotonindumptruck
serotonindumptruck's picture

On a planet with finite resources, the "carrying capacity" is also finite. It is unrealistic to believe that world hunger can somehow be eliminated.

Thu, 02/03/2011 - 12:34 | Link to Comment LFMayor
LFMayor's picture

What a heart wrenching tapestry you've created.  Do you by chance write commercials for some animal welfare freak fund, or for that group that has the fat santa clause looking bastard as their mouthpiece?

How about we send our surplus puppies and kittehs over to those poor starving kids, so they can cook themselves up some grub?

All these eco freaks and bleeding hearts piss and moan about "burning food in our SUV gas tanks", while they can actually buy refridgerated salami style food for THEIR FUCKING DOG now.  Because it's nutritionally correct.  And dogs are people too.  But we're serious about solving world hunger!

Here's a little theory for you... maybe we're a bit overdue for a downsizing event... clean out some of the stupid that's been sheltered for too long.

Where's Fat Assed Willy when you need him?  And for those of you about to wish that I get stuck in the screens during this filtration process... well, you may be right.  Or I might even be sitting around a cookfire in the future, offering you some roast doberman, or a nice cut from one of those distended bellies.

Thu, 02/03/2011 - 12:56 | Link to Comment serotonindumptruck
serotonindumptruck's picture

I've heard many wonderful, mouth-watering descriptions as to the flavor of canine flesh. Maybe that's a lesson we can learn from the people of Asia.

 

Thu, 02/03/2011 - 12:08 | Link to Comment Gimp
Gimp's picture

There is no inflation, Steve Lies-man told me this morning.

Thu, 02/03/2011 - 12:29 | Link to Comment americanspirit
americanspirit's picture

Our planet's resources are indeed finite, but the issue isn't eliminating hunger, it is figuring out how to assure that enough of our finite resources are available to helpless people that they don't die of starvation. Without of course trampling on any financial sacred cows - such as " I've got mine - fuck them".

Hunger does not equal starvation. Hunger means not enough food. Starvation means no food. The problem lies with the distribution of the planet's finite resources, and that distribution problem is a matter of greed and malice, not finite-ness.

Thu, 02/03/2011 - 12:39 | Link to Comment LFMayor
LFMayor's picture

I already give to the helpless... it's called taxes.  Your socialist experiment is a demonstrated failure... has been since the "Great Society" kicked off.  Now you want to ramp it up and give just a little bit more, that's all it will take to make it work this time, right?

Not everyone gets to win.  They should have never taken dodge ball out of the school, it's been for shit ever since.

Thu, 02/03/2011 - 13:40 | Link to Comment pods
pods's picture

Sorry, the problem is not any of the "isms", the problem is the issuing of debt with interest.  For this system to work, you need exponential expansion every year.

Why is it nobody can really see the problem?  Easy, because when you yourself are the problem, it becomes difficult to fix.

It is really easy to see who caused this problem:

"If you are looking for the guilty, you need only look into a mirror."

-V-

 

Giving to the helpless is called charity.

Your taxes in no way go to the "helpless", they go to paying the interest on our debt or to keep the system going.  Of course the governments spends money on the poor, the military, the rich.    Money taken at gun point to pay off the bankers who have taken over this land is called extortion, not charity.

Now the government has to spend money to keep the amount of debt money increasing YOY or the system collapses.

By staying in the "ism" or left-right paradigm you are going to fail.  Think bigger.  

pods

 

Thu, 02/03/2011 - 12:36 | Link to Comment Bastiat
Bastiat's picture

Bennie:  As long as gold is under $1400 and silver under $30 there is no inflation and I'm a genius saving the world. godammit!!!

Thu, 02/03/2011 - 12:42 | Link to Comment pazmaker
pazmaker's picture

How are our resources finite?  A chicken lays an egg and then we have more chickens to lay more eggs.  A flower grows and withers but it produces seeds which produce more flowers..  The dead animals and plants turn into fertilizer thereby replenishing the soil.  the waste product of species turns into fertilizer replenishing the soil.

It's all a cycle .... and a circle has no beginning or end.

 

I don't get this finite planet finite resources thing.

Thu, 02/03/2011 - 12:45 | Link to Comment Bastiat
Bastiat's picture

May I suggest a long trip to India or Africa?

Thu, 02/03/2011 - 12:49 | Link to Comment pazmaker
pazmaker's picture

will it change the infinite laws of nature?

Thu, 02/03/2011 - 12:53 | Link to Comment Zero Govt
Zero Govt's picture

+1 Pazmaker

-1 Bastiat

America produces 30% more food than it can consume annually. So too does Europe. There are no excuses. All you need is to industrialise (invest therein) in modern agriculture. You can feed and water yourself in the most arid of deserts (see Dubai, Las Vegas, Australia)

Thu, 02/03/2011 - 13:31 | Link to Comment Bastiat
Bastiat's picture

But America cannot produce infinite food nor can an infinite human population be supported on earth.  Clean fresh water supplies are finite.  Deep water aquifers in parts of the SW US are being depleted at rate that far exceeds their replenishment. 

Thu, 02/03/2011 - 19:39 | Link to Comment Zero Govt
Zero Govt's picture

Capture the rain, Dubai, Las Vegas and the Ozzies manage it.... as for "finite resources" more leftie hysterical crap. Are you out of water or food? No. So STFU and leave the rest of the planet to sort their stuff out

Thu, 02/03/2011 - 13:03 | Link to Comment serotonindumptruck
serotonindumptruck's picture

I suppose if the planet was constantly expanding at a rate commensurate with human population densities, then infinite growth would be possible.

Perhaps you've been reading too many science fiction books?

Otherwise, this is a ridiculous, assinine discussion. 

Thu, 02/03/2011 - 13:36 | Link to Comment Bastiat
Bastiat's picture

OK, I'll quit.  ;-)

 

Thu, 02/03/2011 - 13:38 | Link to Comment pazmaker
pazmaker's picture

I don't know about science fiction....but science tells us that all things flow in cycles....the earth replenishes itself and flows in cycles.  Human population may get to the point that there are more humans then there is food available but that will cycle as well.

 

Thu, 02/03/2011 - 13:40 | Link to Comment Flakmeister
Flakmeister's picture

It's all a cycle .... and a circle has no beginning or end.

 

I don't get this finite planet finite resources thing.

 

What kind of Zen nonsense is this? Have you ever used the exponential function in any form what so ever? Try reading

http://www.albartlett.org/presentations/arithmetic_population_energy.html

and maybe watching one of his lectures as a start and then we can discuss things..

Thu, 02/03/2011 - 13:53 | Link to Comment pazmaker
pazmaker's picture

 Has Al Bartlett discovered a way to permanently defy the laws of nature?

Has he explained away the Conservation of Mass?

"the totality of things was always such as it is now, and always will be" Epicurus

And now  a link for you to read my dear friend Flakmeister:

http://members.optusnet.com.au/exponentialist/Bartlett.htm

Thu, 02/03/2011 - 14:05 | Link to Comment Flakmeister
Flakmeister's picture

 Well, I suppose if you think a dead, burnt out, de-populated planet, is part of the cycle.

  I looked at your link... classical cornucopian neo-classical economic clap trap. For example, it does not matter if a growth rate is constant, as long as it is positive, it will eventually double.

  The path we are on is not sustainable, end of story.

Thu, 02/03/2011 - 14:15 | Link to Comment pazmaker
pazmaker's picture

End of your story Flak and your perception of reality...

 

we will just have to agree to disagree. 

Peace!

Thu, 02/03/2011 - 13:42 | Link to Comment pods
pods's picture

Simple, if you can quantify it, it is finite.

pods

Thu, 02/03/2011 - 13:05 | Link to Comment americanspirit
americanspirit's picture

As I said, greed and malice are the problem, not finite resources. Some of the comments here make that obvious. Thank you.

Upon reflection I would add ignorance and selfishness. And perhaps a touch of sociopathology - the inability to experience empathy. Anyone who can reduce the mass starvation of children to a political rant is way past the edge of humanity.

Thu, 02/03/2011 - 13:15 | Link to Comment pazmaker
pazmaker's picture

American spirit I read where you said resources are indeed finite...I just disagree with you on that point as I do not believe they are finite.

I have posted on a number of different places here that greed indeed is a root cause of the majority of our(mankind) woes.

It is a deep spiritual issue that knows no cultural or geographic boundaries.

Thu, 02/03/2011 - 13:32 | Link to Comment serotonindumptruck
serotonindumptruck's picture

Production efficiency and resource allocation could be modified in an effort to reduce world hunger, however there remains a limited amount of arable land on which maximum production yields could be achieved.

The other important factor is the role that fossil fuels play with industrial food production.

The world is over-due for a massive die-off, and we're all just witnessing the beginning stages of this event.

Thu, 02/03/2011 - 13:40 | Link to Comment The Profit Prophet
The Profit Prophet's picture

+QE3 x QE4.....(Pazmaker)

-QE3 x QE4.......(Seratonindumptruck)

People don't deserve to starve because criminal bankers lost their riches in a casino of their own making!

Thu, 02/03/2011 - 13:14 | Link to Comment Eric L. Prentis
Eric L. Prentis's picture

Bernanke, using QE2, is spreading food and energy inflation around the world. Bernanke is saving slimy Wall Street crooks, at the expense of world stability. President Obama, please get your head out of your ass, stop Bernanke before he kills us all.

 

Thu, 02/03/2011 - 13:46 | Link to Comment pods
pods's picture

I would agree 100%, but BO is just as guilty as Benny.

We all are guilty to some degree.  We have for generations pulled forward demand to live lavish lifestyles at the expense of the future.

Well, the future is soon to arrive, and it is gonna be pissed.

pods

Thu, 02/03/2011 - 14:02 | Link to Comment americanspirit
americanspirit's picture

Its good to see that not everybody here agrees with WC Fields that "Anybody who hates children and dogs can't be all bad." I do agree that while resources are theoretically finite we have a long way to go before the earth is incapable of supporting its human beings. And long before we reach that Malthusian limit, greed, hatred, war and corruption will have done their nasty work.

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