NIA Releases Food Price Estimates For A QE2 World: Bread To $23.05, Corn To $11.43, $62.21 For Sugar

Tyler Durden's picture

On one hand we have the WSJ writing day after day that prices of food and energy products are not "really" rising. On the other hand we have empirical evidence that virtually every staple is already higher in price, or is being served in proportionally smaller portions. One possible arbitration on the issues comes from the NIA, which even if biased, does provide an estimate of where prices of various key perishables will end up in a post-QE2 world. These are as follows: "$11.43 for one ear of corn, $23.05
for a 24 oz loaf of wheat bread, $62.21 for a 32 oz package of Domino
Granulated Sugar, $24.31 for a 32 fl oz container of soy milk, $77.71
for a 11.30 oz container of Folgers Classic Roast Coffee, $45.71 for a
64 fl oz container of Minute Maid Orange Juice, and $15.50 for a
Hershey's Milk Chocolate 1.55 oz candy bar." Granted these are likely somewhat whimsical, but even if they are partially correct, it would mean the bulk of US society, as we pointed out previously, is in for a long, cold, hungry winter.

From the NIA:

The National Inflation Association today announced the release of its
report about NIA's projections of future U.S. food price increases due
to the massive monetary inflation being created by the Federal Reserve's
$600 billion quantitative easing. This report was written by NIA's
President Gerard Adams, who believes food inflation will take over in
2011 as America's greatest crisis. According to Mr. Adams, making
mortgage payments will soon be the last thing on the minds of all
Americans. We currently have a currency crisis that could soon turn into
hyperinflation and a complete societal collapse.

"For every economic problem the U.S. government tries to solve, it
always creates two or three much larger catastrophes in the process,"
said Adams. "Just like we predicted this past December, the U.S. dollar
index bounced in early 2010 and has been in free-fall ever since.
Bernanke's QE2 will likely accelerate this free-fall into a complete
U.S. dollar rout," warned Adams.

NIA projects that at the average
U.S. grocery store it will soon cost $11.43 for one ear of corn, $23.05
for a 24 oz loaf of wheat bread, $62.21 for a 32 oz package of Domino
Granulated Sugar, $24.31 for a 32 fl oz container of soy milk, $77.71
for a 11.30 oz container of Folgers Classic Roast Coffee, $45.71 for a
64 fl oz container of Minute Maid Orange Juice, and $15.50 for a
Hershey's Milk Chocolate 1.55 oz candy bar. NIA also projects that by
the end of this decade, a plain white men's cotton t-shirt at Wal-Mart
will cost $55.57.

The report highlights how despite cotton rising by 54%, corn rising by
29%, soybeans rising by 22%, orange juice rising by 17%, and sugar
rising by 51% during the months of September and October alone, these
huge commodity price increases have yet to make their way into America's
grocery stores because corporations have been reluctant to pass these
price increases along to the consumer. In today's dismal economy, no
retailer wants to be the first to dramatically raise food prices.
However, NIA expects all retailers to soon substantially raise food
prices at the same time, which will ensure that this Holiday shopping
season will be the worst in recorded American history.

Full NIA report:

foodpriceprojections -

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goldmiddelfinger's picture

But we need to increase the SPX. All that other stuff doesn't matter.

 

,

MeTarzanUjane's picture

It matters to the penny stock pitchmen. Sensational!

MarketTruth's picture

You are looking at it all wrong according to CNBC:

We need to look at it this way, the rising cost of food means CONSUMERS ARE SPENDING MORE MONEY and that is great news according to those bubble heads on TV. It also means sales in dollars will be up for retailers and that it great news...

So it is obvious to see the scam and how truly horrible this is IF you know how to look at it in REAL terms and not CNBC hype-meister BS.

macholatte's picture

and when someone drops dead from starvation or exposure then it's great news because they won't be getting social security or food stamps or free medical care.

Doublethink means the power of holding two contradictory beliefs in one's mind simultaneously, and accepting both of them.
George Orwell

StychoKiller's picture

Downside to that:  Coffins = $200,000+

MarketTruth's picture

It will be like Monty Python's "Throw out your dead."

mtomato2's picture

Somehow, 1984 is still required reading in our local high school.  I don't know how it has remained under the radar thus far.

 

Just finished it again the other night.  Never in a million billion years would I have ever guessed we could so accurately and rapidly reach the point where we mirrored Orwell's nightmare.

FunkyMonkeyBoy's picture

Why are the DOW futures down 70+ points at the moment? What just shat?

goldmiddelfinger's picture

Patience grasshopper, Cramer's trying to figure how to spin CSCO's diarrhea as bullish

traderjoe's picture

CSCO down 13% in AH. OUCH. Robo - can you throw out a chart? 

Bill Lumbergh's picture

I second that request...Robo we need a full-blown boner chart on CSCO and some commentary of which only you can deliver.

ATG's picture

it would mean the bulk of US society, as we pointed out previously, is in for a long, cold, hungry winter...NIA projects that at the average U.S. grocery store it will soon cost $11.43 for one ear of corn, $23.05 for a 24 oz loaf of wheat bread, $62.21 for a 32 oz package of Domino Granulated Sugar, $24.31 for a 32 fl oz container of soy milk, $77.71 for a 11.30 oz container of Folgers Classic Roast Coffee, $45.71 for a 64 fl oz container of Minute Maid Orange Juice, and $15.50 for a Hershey's Milk Chocolate 1.55 oz candy bar.

Soon? NIA forecasts are for those prices in a decade, not a season

42% obese Americans may have a new diet on Oprah

Why are the DOW futures down 70+ points at the moment?

They sold at a discount all week, perhaps on anticipation of Clif High's tipping point

http://www.halfpasthuman.com/nunums.html

DollarDive's picture

It's amazing how it always comes back to guns and butter.

CrockettAlmanac.com's picture

Frosted Flakes, bitches.

carbonmutant's picture

Re-Electing Jerry Brown is another example of the Stockholm syndrome...

ATG's picture

Bingo

Let's see exactly what he and $300 M from unions complaining about Whitman spending $129 M of her own money for the campaign can accomplish with a $35 B budget shortfall

Will China Germany Japan and UAE buy CA deeds and tax delinquencies?

Ragnarok's picture

A little much, but I think everyone at ZH gets the point.  Beck mentioned these guys on air the other day.  Commence junking now.

 

Full commercial free episodes can be seen at The Daily Beck:

http://www.watchglennbeck.com/

 

CrockettAlmanac.com's picture

The Daily Beck

 

I take my daily Beck around 11 in the morning after a couple of cups of coffee.

mtomato2's picture

Thank you.  Thankyouthankyouthankyou.

I've been trying to get the show from last Friday, with Damon Vickers.  Now I have it.

 

Would some of you be so kind as to chime in on your opinions of Damon Vickers?

flrzero's picture

Are they projecting two months price increases linearly through 2020. That's not very helpful........

FEDbuster's picture

No, because what started as the slow 20-50% annual increase in prices in Zimbabwe became the daily and hourly rate of price inflation.  So the NIA could be a bit too conservative in their estimates. 

I am still a Zimbabwe multi-trillionaire, bitchez!  Holding on to my 10 ten trillion dollar bank notes.  Dow to 100,000 by 2012, wealth effect baby!

tmosley's picture

Exactly.  The move is much more likely to be parabolic.

$62 quadrillion dollar sugar, bitchez.

midtowng's picture

True, but it also isn't helpful to wait for the trend to become obvious to everyone before pointing it out.

Clint Liquor's picture

Is this part of Michelle (Antoinette) Obama's anti-obesity program?

Lucky Guesst's picture

Ha-Ha, I was scrolling down to make a similar comment.

Fractured Space's picture

If beer ever gets to the point where J6P can't buy a case of bud for less than $50 there will be some Populist issues. Clinging to guns and religion is nothing compared to the thirst of drinking beer.

goldmiddelfinger's picture

May I recommend grain alcohol and rainwater ?

CrockettAlmanac.com's picture

In Pennsylvania (where Obama says all the clinging to God and guns goes on) grain alcohol is outlawed. Worse than that, Bud bought out Rolling Rock a couple years back.

Fractured Space's picture

I do have some shine in the cabinet, but I love a good hoppy beer

Jendrzejczyk's picture

Hop crop way down this year. Tupper's Hop Pocket was one of the best.

Rusty Shorts's picture

 - started some Hops in the garden this year, fucking eh.

Screwball's picture

I expect 10 or 11 ounce cans in the near future.  Bastards.

goldmiddelfinger's picture

Looks like I picked a bad time to stop sniifing Glade Air Freshner

Sausagemaker's picture

Hospital! What is it?

It's a big building full patients, but that's not important right now.

squid_pro_quo's picture

You have clearance, Clarence.

Roger, Roger.

What's our vector, Victor?

mtomato2's picture

Bobby, have you ever been in a Turkish prison?

Lucky Guesst's picture

They just have our best interest at heart. We will be skinny, addiction free. Pissed off but without guns! Gas will be too treasured to waste in a moment of road rage. Don't be sad, the free healthcare will allow everyone to be placed on anti-depressants (or in the psych ward).

ziggy59's picture

good call, IMO.  some imports from EU are now 11.2 oz bottles.

 

gonna need to change the acro to J6.5Psince he's going to be thirsty not getting his normal 72 oz/6pk

 

 

 

 

 

 

FEDbuster's picture

The good ole days of Miller "Shorties" in 7 oz bottles, known by some as "hand grenades".

Eyes on the World's picture

Uh, don't y'all have a still where you come from?

 

Cruel Aid's picture

As the rednecks say "Fuckin ayeee"

 

jeff montanye's picture

hard cider remains the quickest and easiest.

litoralkey's picture

You have clowns to the left of me like Michael Mann creating AGW hockey stick graphs, on the other side you got jokers like NIA creating hyperinflationary CPI basket hockey stick graphs, here I am stuck in the middle with you.

Stuck in the middle with you,,,

Oh yes I'm stuck in the middle with you.....

Bolweevil's picture

I paid $1.39 for a snickers bar yesterday.

Loco Vida's picture

and I wasted 1.39 seconds realizing you were stupid........we both lost but you got fatter............