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Rice Takes Out December 2009 Highs, Next Stop: $20, As China Distributes Fake Plastic Rice

Tyler Durden's picture


And so the tide rising all commodities keeps coming: rough rice has just passed its December 2009 high and is now at its highest since October 2008. When we predicted on Monday morning that "rice is next", little did we think that it would be up by 11% in 4 days. And with this important resistance level broken, it is smooth sailing to the next two resistance levels of $20 and $24. Of course, Bangladesh will be in flames long before any of those are hit. But a speculator has to eat, right. After all, none of this is Gen Ben's fault.


Long-term Rice:

And Rice since Monday:

And for those curious how China is dealing with multi year rice price highs, here is a tip, via Very Vietnam:

Fake Plastic Rice from China

According to the Korean-language
“Weekly Hong Kong” (which many Vietnam websites are referencing as
well), Singapore media claim that fake rice is being distributed in the
Chinese town of Taiyuan, in Shaanxi province. This “rice” is a mix of
potatoes, sweet potatoes, and plastic. It is formed by mixing the
potatoes and sweet potatoes into the shape of rice grains, then adding
industrial synthetic resins. Since the rice does not behave like normal
rice, it stays hard even after it has been cooked. Such synthetic resins
can also be very harmful if consumed.

A Chinese Restaurant
Association official said that eating three bowls of this fake rice
would be like eating one plastic bag. Due to the seriousness of the
matter, he added that there would be an investigation of factories
alleged to be producing the rice. Meanwhile, the low cost of the fake
rice is allowing wholesalers to make large profits.

Vietnam Increasingly Concerned over Food Safety

Vietnam, there are have been various reports in the domestic media
about tainted food, leading many to worry about the safety of the food
supply. Here are some recent English articles from Vietnam:

Specifically involving food from China

  • January 21: “Contaminated food seized in HCMC”
  • January 18: “Smuggling diseased Chinese poultry into Vietnam increases as Tet approaches”
  • December 30: “Vietnam denies sale of fake eggs “
  • December 26: “Dangerous chemicals have been used in food for years”


  • January 21: “Vietnam snake wines could induce biting headache”
  • Janury 20: “HCMC inspectors destroy unsafe eggs, seal borax-contaminated food”
  • January 14: “Vietnam finds carcinogen in spice samples”
  • January 10: “Nearly 470 workers hospitalized with food poisoning”
  • January 8: “Fake alcohol erodes rural people’s stomach”
  • January 4: “Food poisoning hits 700 in HCM City”
  • November 15: “Is unsafe food poisoning Vietnamese people?”

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Thu, 02/03/2011 - 12:54 | 931191 truont
truont's picture

Holy $h!t, TD--I thought you were only kidding about the fake rice.


Thu, 02/03/2011 - 12:56 | 931202 66Sexy
66Sexy's picture

can you eat paper rice?

Thu, 02/03/2011 - 12:58 | 931211 schoolsout
schoolsout's picture

you can smoke rice paper...

Thu, 02/03/2011 - 13:10 | 931272 IBelieveInMagic
IBelieveInMagic's picture

Holy moly gold's up and away!

Thu, 02/03/2011 - 18:13 | 932666 Haywood Jablowme
Haywood Jablowme's picture


You can eat paper rice which several asian countries use it in candy as a wrapper but probably good to stay away from PLASTIC rice.  Bravo TD!  I actually started LOL when first reading the title. 

Jeezus, knock-off rice?  Really?  haha lmfao.  Those smart chineses.  Always an opportunity with them chineses.



Thu, 02/03/2011 - 13:20 | 931330 Ahmeexnal
Ahmeexnal's picture

paper rice...not very tasty.
Try paper parmesan cheese!

Parmesan Cheese (Aged 6 Months) , (Pasteurized Part-Skim Milk , Pasteurized Part-Skim Milk , Salt , Salt , Less Than 2% of: , (Enzymes , Cheese Culture , Cellulose Powder (To Prevent Caking) , Potassium Sorbate (To Protect Flavor)) , Less Than 2% of:) , (Enzymes , Cheese Culture , Cellulose Powder (To Prevent Caking) , Potassium Sorbate (To Protect Flavor))

Note how it's marketed as 100% with no fillers. And how CELLULOSE POWDER is conveniently added TO PREVENT CAKING.
Now you know that YOU CAN EAT PAPER MONEY!

Thu, 02/03/2011 - 14:21 | 931647 ElvisDog
ElvisDog's picture

Just further confirmation for me to never eat anything that comes from China. Plastic fucking rice. Brilliant.

Thu, 02/03/2011 - 12:57 | 931208 schoolsout
schoolsout's picture

yea, me, too...


Thu, 02/03/2011 - 13:18 | 931331 Saxxon
Saxxon's picture

I've been to Taiyuan; Shanxi Province, illegal coal mines, bone-dry and cold in the winter. 

Keep moving but Pingyao is interesting - one of the few walled cities remaining.

I thought it was a joke too.

Thu, 02/03/2011 - 13:33 | 931414 Agent P
Agent P's picture

"This “rice” is a mix of potatoes, sweet potatoes, and plastic. It is formed by mixing the potatoes and sweet potatoes into the shape of rice grains, then adding industrial synthetic resins. Since the rice does not behave like normal rice, it stays hard even after it has been cooked. Such synthetic resins can also be very harmful if consumed."

It would be sweet poetic justice if this stuff came with a "Made in USA" sticker on the bag.

Thu, 02/03/2011 - 14:07 | 931582 instinctiveDrift
instinctiveDrift's picture

It's only a matter of time before some tries to make Chinese White Wine from this stuff...

Thu, 02/03/2011 - 13:02 | 931201 HamyWanger
HamyWanger's picture

Nice bounce on the DJIA this morning! I'm ready to bet it will close green, like every other day. AAPL will reach 1,000 dollars an action in less than 9 months, according to my personal research and technical analysis.

Shorter permadoomers once again lost money. If you want an investing advice: buy AAPL and NFLX, sell your gold.

Thu, 02/03/2011 - 13:10 | 931278 iota
iota's picture

Oh wait it's Hamy, not Harry. I unjunk thee!

Thu, 02/03/2011 - 13:06 | 931213 hedgeless_horseman
hedgeless_horseman's picture

With Sara Lee® Delightful™ White Bread, you can enjoy a great tasting meal without feeling like you're missing out. Delightful™ bread gives you the taste and texture you love, but with only 45 calories per full-size slice. So go on, make yourself a delicious sandwich - you won't even notice the calories that are missing.



Why use expensive wheat, when you can use sawdust?  That is right, cellulose, AKA sawdust, bitchezzz!!!!  But it still costs the same.  I see no inflation.

Thu, 02/03/2011 - 13:09 | 931274 MonsterBox
MonsterBox's picture

you've got to be kidding...saw dust?!?

guess PT Barnum was right:  "A sucker born every minute" 

My dear Nubians, care for a slice of US of A white bread?


Thu, 02/03/2011 - 13:39 | 931359 hedgeless_horseman
hedgeless_horseman's picture

One manufacturer even added sawdust to replace the lost bran, calling it cellulose on the label and advertising it as "high-fiber" bread.






Thu, 02/03/2011 - 14:07 | 931588 tmosley
tmosley's picture

Nooo!  You drink the bleach.

Thu, 02/03/2011 - 13:19 | 931329 nonclaim
nonclaim's picture

Extra-processed meat in sausages can also contain, beyond disgusting low quality meat, a lot of cellulose for consistency and shape (up to 40%, IIRC).

Thu, 02/03/2011 - 21:15 | 933255 Cathartes Aura
Cathartes Aura's picture

Mechanically separated meat (MSM), a product also known as mechanically recovered/reclaimed meat (MRM), mechanically deboned meat (MDM), is a paste-like meat product produced by forcing beef, pork, turkey or chicken bones, with attached edible meat, under high pressure through a sieve or similar device to separate the bone from the edible meat tissue. For the production of chicken and turkey MSM, most of the time, breast carcasses are used as they still contain parts of breast meat.

Mechanically separated meat has been used in certain meat and meat products since the late 1960s. This product can be contrasted with meat extracted by advanced meat recovery systems. The most common use of MSM is into hot dogs.

During the 50s, mechanically separated meat was mostly used as a raw material for the product of hot dogs; nowadays, also luncheon meats, burgers and mortadella are being made from MSM, after a process pioneered by Todd Mudry.

what was once considered "dog food" - now approved for human consumption. . . that Monsanto/FDA revolving door pays off!

Thu, 02/03/2011 - 13:00 | 931216 Bob
Bob's picture

Where's the pumper to explain to us all that it's really about supply and demand??

Thu, 02/03/2011 - 16:43 | 932307 The Rogue Economist
The Rogue Economist's picture

It's all about supply and demand! ^_^

Actually, it is. An oversupply of dollars is causing upward pressure on food prices, resulting in a substitution effect.

In other words, a little plastic is better than starving.

God help us all.

Thu, 02/03/2011 - 13:00 | 931219 Ivanovich
Ivanovich's picture

This shit is fucking hilarious.  The end cannot be far away.  News gets exponentially more surreal every day.

Thu, 02/03/2011 - 13:11 | 931283 jus_lite_reading
jus_lite_reading's picture

In many lands where the price of food increases just 5% per year, people resort to eating mud. With 25% monthly increases in food prices, we'll see war.

Thu, 02/03/2011 - 13:01 | 931220 Xibalba
Xibalba's picture

It's fly lice!

Thu, 02/03/2011 - 13:12 | 931288 jus_lite_reading
jus_lite_reading's picture

NOW that is funny! ;)

Thu, 02/03/2011 - 18:15 | 932699 Haywood Jablowme
Haywood Jablowme's picture


chicken fly lice!



Thu, 02/03/2011 - 13:02 | 931222 GoinFawr
GoinFawr's picture

Just add a melamine cream sauce to your plastic rice...

Thu, 02/03/2011 - 13:04 | 931228 Bob
Bob's picture

Rice that really sticks to your ribs . . .

I see some executions coming.

Thu, 02/03/2011 - 13:02 | 931229 Ivanovich
Ivanovich's picture

What the hell just sent gold into orbit?

Thu, 02/03/2011 - 13:22 | 931360 Ahmeexnal
Ahmeexnal's picture


Thu, 02/03/2011 - 13:04 | 931236 Dick Darlington
Dick Darlington's picture

Next time i go to supermarket I have to check if they already have changed the picture of Uncle Ben on the side of the rice box. I fear that the gentle looking old man has been replaced by a picture of Gen Ben.

Thu, 02/03/2011 - 13:04 | 931237 NOTW777
NOTW777's picture

PMs pop

Thu, 02/03/2011 - 13:05 | 931241 pazmaker
pazmaker's picture

I'm long grain rice....basmati

Thu, 02/03/2011 - 13:05 | 931255 tmosley
tmosley's picture

Much healthier than short grain rice.

Thu, 02/03/2011 - 17:03 | 932385 hardcleareye
hardcleareye's picture


Thu, 02/03/2011 - 13:04 | 931242 MonsterBox
MonsterBox's picture

As Uncle Benny prints, the fiat flys to the nearest bubble, in this case it's rice.  was cotton a couple days ago...

Thu, 02/03/2011 - 13:08 | 931265 pazmaker
pazmaker's picture

Monster... Uncle Ben does put out some pretty good rice!

Thu, 02/03/2011 - 13:14 | 931307 MonsterBox
MonsterBox's picture

True, LOL.  but the other Ben (the beryank) continues to print a product of diminishing value.  lets say its less filling

Thu, 02/03/2011 - 13:04 | 931244 HUGE_Gamma
HUGE_Gamma's picture

bloomberg interview yesterday with former editor of `Rice Trader` said that Chicago Rice is not good benchmark.. Philippines and Vietnam has the big swinging rice bags.

Thu, 02/03/2011 - 13:04 | 931245 umop episdn
umop episdn's picture

It's just *amazing* what they can do with plastics nowadays. Too bad the plastic rice is about as edible as a Criminal Reserve Note.

Thu, 02/03/2011 - 13:04 | 931247 kentfinance
kentfinance's picture

gold trades 13510

Thu, 02/03/2011 - 13:07 | 931261 Pool Shark
Pool Shark's picture

reason for the pop?

I haven't heard any news...

Thu, 02/03/2011 - 13:16 | 931319 MonsterBox
MonsterBox's picture

LMFAO!  love the five-digits!

that would be a considerable pop!

Thu, 02/03/2011 - 13:53 | 931520 kentfinance
kentfinance's picture

priced in ticks (obviously)

Thu, 02/03/2011 - 13:06 | 931254 chet
chet's picture

I am really starting to wonder if international chaos might not end Ben's shit show a lot earlier than planned.

Thu, 02/03/2011 - 13:06 | 931258 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Margarine, bitchez!

Thu, 02/03/2011 - 13:07 | 931260 HarryWanger
HarryWanger's picture

So as I questioned the food price posts a couple of days ago, why would you think "Bangladesh will be in flames" when there were several months in 2007-08 with much higher prices. Why didn't they protest then? Also, why did they price come back down off those highs as it will this time too?

I remember the "food prices surge" in 2008 and everyone saying it was demand driven that you should all pile into Potash, Mosaic or anything to do with food only to see their faces get ripped off on the subsequent crash. We have plenty of upside possible until the inevitable crash in commodities once again smacks speculators in the face.

Thu, 02/03/2011 - 13:15 | 931314 jus_lite_reading
jus_lite_reading's picture

This is the result of a "strong recovery," Harry. Ben's plan was for every man woman and child to own a castle. It's clearly working. Everyone will be a trillionaire by next month...

Thu, 02/03/2011 - 13:17 | 931326 Tyler Durden
Tyler Durden's picture

And our response to you was how much money was the Fed printing on a weekly basis back in the summer of 2008.

Thu, 02/03/2011 - 13:25 | 931372 HarryWanger
HarryWanger's picture

That makes my case even more solid. If the Fed were not printing money as they are now in 2008, there would be no "excuse" for rising commodity prices. In other words, you could easily have made the case that it was demand driven at the time. Wouldn't that have freaked people out even more thinking it was a trend that had no end in sight? At least now, if the Fed is part of the equation of rising prices, we know they'll fall back to realistic levels when the printing ends - or at least come in substantially.

Thu, 02/03/2011 - 13:37 | 931430 tahoebumsmith
tahoebumsmith's picture


Riddle me this...If the FED stops printing, who will pay the bills? Can't wait for your response...

Thu, 02/03/2011 - 13:47 | 931486 topcallingtroll
topcallingtroll's picture

The fed is getting close to tapering off the printing. Hopefully commodities go into a downtrend, gdp and productivity keep trending up and we have scary headlines about a few muni defaults, minor riots here and there, unhappy people who are adjusting to the new reality and their shitty new job, and we eventually rebalance this entire mess in a couple of years.

Thu, 02/03/2011 - 16:00 | 932093 downrodeo
downrodeo's picture

"Hopefully commodities go into a downtrend, gdp and productivity keep trending up"

Here's to hoping, eh?


" and we eventually rebalance this entire mess in a couple of years"

that implies that there was balance to begin with...


You must have one heck of a crystal ball to be able to call that 'the fed is getting close to tapering off the printing'.

Also, if your idea of a minor riot is 1-2 million people demonstrating in the streets, I would be afraid to see what you think a major riot might look like.

At the end of the day, nobody knows what is going to happen exactly. I would ask you though, how much of what you've said is wishful thinking as opposed to educated guessing? In other words, I'm asking, how do you know the things that you're telling us?

Thu, 02/03/2011 - 17:00 | 932379 hardcleareye
hardcleareye's picture

 how do you know the things that you're telling us?

Trolls speak in absolutes, are the authority/experts on everything and are incapable of making a mistake.  Of course some trolls are capable of self  deprecating humor..

Thu, 02/03/2011 - 13:39 | 931442 downrodeo
downrodeo's picture

but the printing doesn't end...

Thu, 02/03/2011 - 15:16 | 931903 Pure Evil
Pure Evil's picture

Have you ever heard of the "Monkey See, Monkey Do" concept, Harry?

Back in 2008 we didn't have Tunisia, Egypt, Yemen, Jordan and a few other sand-flea countries rioting over food prices. Seems this virus is rather catchy as oppossed to the Swine Flu virus.

Even people in Bangladesh have TV's and can see the riots going on in the Middle East. They probably get Al-Jazeera instead of ABC News which is doing its best to muzzle the rioting.

So, why would they do it now as opposed to 2008, because they see other monkeys rioting, and maybe they feel just as oppressed.

Thu, 02/03/2011 - 13:29 | 931374 Red Neck Repugnicant
Red Neck Repugnicant's picture

In the summer of 2008, rice crashed.

It was the fall of 2007 that rice got strapped to a rocket:

There is nothing in that chart that demonstrates quantitative easing is to blame for rice prices. 

Thu, 02/03/2011 - 13:51 | 931510 tmosley
tmosley's picture

Hey, that means we can print forever with no consequences!

Sounds like party time to me!  Where's the government cheese?

Thu, 02/03/2011 - 14:12 | 931593 Red Neck Repugnicant
Red Neck Repugnicant's picture

No.  That's not what I'm saying. Printing money will certainly have specific consequences, but there is virtually no evidence to suggest quantitative easing is to blame for volatile spikes in food prices.    

Here is the chart of corn:

Here is the chart of wheat:

Here is the chart of soybeans:

etc. etc. etc.

I'm trying to show you that there is a very weak correlation between quantitative easing (if, at all) and commodity food prices. This idea that Bernanke is to blame for everything wrong in the world is ridiculous.  Of course, despite whatever charts are shown to you, you'll just willfully deny them, like a creationist staring at fossils.  

Thu, 02/03/2011 - 19:22 | 931640 Bob
Bob's picture

Okay, looking at wheat.  There was a sharp two-week spike from stable trend in early 2008.  No quantitative easing then, right?  I don't see why an explanation for a two week spike is needed.  It's clearly a fleeting artifact/outlier. 

Look at the new stasis reached in Autumn 2008.  It remains intact until QE2 in Autumn 2010, when the baseline is stably elevated. 

So where's QE1? 

Everything else dropped through the floor.  I don't see that happening to wheat, though (relative to its longer-term, pre-2008 levels.) Maybe you should graph it with ES against M1.

Sorry about the off beat terminology, btw.  Elliot and I have never met.

Thu, 02/03/2011 - 15:25 | 931937 tmosley
tmosley's picture

You should elaborate on what you think the consequences will be, if not increasing prices for everything that is required to live, because right now, you sound like Cleopatra.

Thu, 02/03/2011 - 13:25 | 931373 tmosley
tmosley's picture

There WERE protests back then.  Only now they have lived through 3 years of global depression, and they aren't going to stand for high prices any more, just like the people in the middle east.

The Feds have seen this cartoon before.  They think that as long as they don't look down, they won't fall.  Just keep everyone looking up!  Unfortunately, they can only fool a few people all of the time.  This includes people like you, Spalding, Robo, etc.

Thu, 02/03/2011 - 13:29 | 931397 topcallingtroll
topcallingtroll's picture

Now that is the old harry i have admired from afar. I am so glad you found a way to stop hamy from hijacking your account. Welcome back!

Thu, 02/03/2011 - 16:45 | 932311 hardcleareye
hardcleareye's picture

Harry, I am so glad to read your post again, I won't junk you...  you break up the monotony and make me laugh...

Thu, 02/03/2011 - 13:08 | 931263 raya123
raya123's picture


Thu, 02/03/2011 - 13:37 | 931423 Cash_is_Trash
Cash_is_Trash's picture

We are in orbit.

Dunno, maybe some alchemist found that Aurum is edible.

Thu, 02/03/2011 - 13:10 | 931269 UglyPatheticPauper
UglyPatheticPauper's picture

Holy Crap! 

Thu, 02/03/2011 - 13:12 | 931289 jmc8888
jmc8888's picture

So when does someone tell the poor bastards in Egypt that ousting the dictator won't lower food prices? 

Who would've thought following the tenants of monetarism would lead to genocide?  Oh yeah, anyone with a brain and years if not decades ago.

Plastic rice? We better start checking our dog food again.

If given a chance, would those lowly stupid bangledeshians choose Glass-Steagall? Of course.

So what's Ben's excuse? Snow?

Thu, 02/03/2011 - 13:14 | 931303 the rookie cynic
the rookie cynic's picture

Pitifully few people see the connection between peak oil, inflationary monetary policy, and food prices.

Today's food riots and high prices are a consequence of QE1 (with 12-18 month lag).

More food wars and instablility coming next year from QE2.



Thu, 02/03/2011 - 13:21 | 931352 karzai_luver
karzai_luver's picture

Bankster fried rice, CAN'T WAIT!


Thu, 02/03/2011 - 13:40 | 931450 trav7777
trav7777's picture

I thought peak oil was just a religion.  I thought that oil production could grow forever and that there was "plenty" of oil

Thu, 02/03/2011 - 13:56 | 931533 tmosley
tmosley's picture

I thought we were all going to die next Thursday because of peak oil and there was nothing we could do about it because humans are stupid and never come up with solutions to new problems so we should all kill ourselves today?

I thought we were all supposed to only look at one side of the equation and conveniently ignore everything else, and blame it all on peak oil?  I thought we were supposed to give the genocidal pols and bankers a free pass because we were all going to die next Thursday anyways?

My worldview is shattered :(

Thu, 02/03/2011 - 14:02 | 931561 the rookie cynic
the rookie cynic's picture

Oh yeah, I forgot. There's a newly discover field I just read about. A giant really. It's right off the western coast of Nevada. The water is a bit deep there, but with new technology, BP can get to it. They'll be able to pump the oil right out of the ocean and use it directly to power the lights on Ceasar's Palace and the Mirage. It's gonna be epic.

Thu, 02/03/2011 - 13:16 | 931322 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

So let them eat potatoes. Worked for the Irish ...

Thu, 02/03/2011 - 13:19 | 931342 What_Me_Worry
What_Me_Worry's picture

Jokes on the plastic rice makers.  The price of resins are going up, too.

Thu, 02/03/2011 - 13:20 | 931350 Jason T
Jason T's picture

I am growing a huge garden and getting chickens this spring no doubt.  

Thu, 02/03/2011 - 13:21 | 931358 pazmaker
pazmaker's picture

Rice is a main staple at our house.  The last 25lb bag I bought cost 14.81 I wonder how the prices will be effected here in USA?    We do FIFO and have about 150lbs right now.

Thu, 02/03/2011 - 13:44 | 931473 SilverRhino
SilverRhino's picture

Last time I priced it at Costco (about 2 weeks ago) it was about 13 for the basic rice and anything good like Jasmine Rice was already pushing 20.  

Looks like it's about time to take a few hundred BernankeBucks and load up on bulk grains.    PM's are great, but eating is better.  


Thu, 02/03/2011 - 21:35 | 933313 Cathartes Aura
Cathartes Aura's picture

Costco & Walmart both had limits on their bags of rice during the last "scare" - 2008?  don't shop at either, just saying. . .

Thu, 02/03/2011 - 13:22 | 931361 downrodeo
downrodeo's picture

Tyler, I'm starting to flinch like a beaten dog when I read your headlines. I am constantly caught off guard thinking to myself that you're only joking. Stranger than fiction, my friend, stranger than fiction...


Thanks for everything you do.

Thu, 02/03/2011 - 13:30 | 931403 tahoebumsmith
tahoebumsmith's picture

Maybe this will offset the rising oil prices? We can now just dump bags of this into our little rice burners.

Thu, 02/03/2011 - 13:34 | 931416 ZackAttack
ZackAttack's picture

Melamine, bitchez!

Thu, 02/03/2011 - 13:36 | 931420 trav7777
trav7777's picture

Monetary (credit) creation is continuing as if the real economy were growing with it.

The problem is that all of today's debt required tomorrow's growth to support it. The growth isn't happening.  The monetary system wants to unwind into a deflationary implosion.

So instead of monetary reform, we first get attempting to continue credit growth.  See, credit can't just stay static because it carries compound interest drag.

As far as plastic rice, what the fuck that's NOT counterfeit and toxic comes out of China?  That SciChannel show "Idiot Abroad," I'm beginning to think that all the "other cultures" people in the UK are the idiots.  This guy goes over there and plainly says wtf to China.  He sees people eating scorpions and cockroaches on sticks in unsanitary open markets, people shitting with no TP, basically a complete lack of real civilization, superstition everywhere.  In India, he sees people worshipping cows and brushing their teeth with cowshit.  So far I have to agree with the Idiot and I see nothing to revere in these cultures.

We should be thankful for what rule of law we have left that prevents the sale of plastic as rice.  At least our lawyers are good for something in that regard.

Thu, 02/03/2011 - 13:53 | 931527 Flakmeister
Flakmeister's picture

  Mentioned this in an earlier thread....

We have about 1 trillion barrels of oil or goo that can be made into oil, from the CIA fact book, world debt is ~70 trillion and increasing. (I won;t even mention long term promises made re: entitlements) How the fuck is that debt going to be serviced when the underlying alpha asset upon which everything is based is decreasing at ~3% per year...

Thu, 02/03/2011 - 15:36 | 931932 Dapper Dan
Dapper Dan's picture

Flak, I like the cut of your jib!

And don't forget the 100 trillion that is still needed,  so say the world economic forum.


"The world has no money and the emperor has no clothes"

 Brian Williams May 6, 2010

(original quote is from Neil Cavuto)

Thu, 02/03/2011 - 15:59 | 932087 Flakmeister
Flakmeister's picture

  Much obliged...

The other cute factoid is that the interest on foriegn holdings of US treasuries will currently buy about ~15% of oil that is freely available on the market, i.e. net oil exports of producing nations. Tick, tock, tick, tock...

Thu, 02/03/2011 - 13:54 | 931530 Biosci
Biosci's picture

Amen, brother.

I wonder if the resident ultralibertarian utopian crowd sees the connection between zero government and plastic rice.  Still, it's cute to watch TPTB frantically running around trying to 'fix things' and acting as if they know what they're doing.  I wonder if, when they're lying in bed at night, in those last moments of quiet clarity before sleep comes, they admit to seeing the world exactly the same way we do.

Thu, 02/03/2011 - 16:47 | 932319 Calmyourself
Calmyourself's picture


Explain how China has zero government again and that serious lack of central planning in CHINA causes plastic rice to be produced.  So in fact the more Government the better the food products.. Which Government now produces the best food in your estimation?

Thu, 02/03/2011 - 19:14 | 932912 Biosci
Biosci's picture

Poorly worded on my part, but there's a strong argument to be made that "total lack of product safety regulatory regime" is at least somewhat correlated with "there's high demand for rice so let's exploit this opportunity by making some fake stuff, health consequences be damned."

If your argument is that US food safety is higher because we have less government, then we're just going to have to disagree.

Thu, 02/03/2011 - 15:10 | 931875 Rick64
Rick64's picture

 I agree with your assessment of credit and debt, but thankful for the rule of law in America? FDA approving drugs that have adverse effects and many times don't even remedy the ailment, milk with bovine hormone (Monsanto developed), pesticides and GM seeds (monsanto), polluting waters by corporations, floride in the water, sodium nitrate (carcinogenic)used to color meat. The list is long. BTW where were the U.S. agencies when Chinese contaminated drywall and childrens toys were being imported.

Thu, 02/03/2011 - 13:37 | 931427 Caviar Emptor
Caviar Emptor's picture

Yup we got the perfect storm:

reckless money printing (QE2 on top of 40 years of reckless debt and trade imbalances) PLUS global resource competition (from huge growth in emerging economies and America's insatiable appetite for resources paid for with recklessly printed paper) PLUS global resource depletion. High demand, inflexible supply, loosey goosey monetary policy. 

These trends will go on. The futures market is only the messenger. And its a useful way to hedge against coming price increases. Speculation is just small potatoes, the weakest hands and cuts both ways. 

Thu, 02/03/2011 - 13:41 | 931433 tamboo
tamboo's picture

instead of being hungry again 15 minutes later
you're hungry again 5 minutes before you finish eating it.
soon we'll be boiling it in fake water.
oh wait...

Thu, 02/03/2011 - 18:48 | 932823 andybev01
andybev01's picture

What? you don't have dehydrated water in your prepper pack?

Thu, 02/03/2011 - 13:39 | 931436 topcallingtroll
topcallingtroll's picture

I am kinda glad I stocked up on rice beans bullets coffee and a few other staples. Time to start digging in to smooth my consumption curve. I will let you know how year old rice in plastic buckets with mylar and oxygen packs tastes like. Wife still thinks i am crazy from filling up the house like that, but now you buggers have one less demand data point (me). Someone else can have my.current commodity demand.slot while I do my part to whip inflation now! This is part of the trolls countercyclical demand policy. Rice prices will go up 0.00000000001 cent less this year due to my decreased demand. If you buggers want to help kill this inflation and improve your cash flow start eating out of storage now.

Thu, 02/03/2011 - 13:41 | 931451 Dick Darlington
Dick Darlington's picture

Maybe we should all chip in and get Uncle Benron a Bloomberg station. It's time for him to start checking what's happening in the REAL world.

02-03 12:34: Fed's Bernanke says 'overall inflation remains quite low'
Thu, 02/03/2011 - 18:50 | 932832 andybev01
Thu, 02/03/2011 - 13:44 | 931471 thecakeisalie
thecakeisalie's picture

I'm currently in HCMC, Vietnam, and those stories are very common here. China's fake rice, fake plastic squid, chemical laced alcohol, and super growth hormones are just some examples of what is exported from China into Vietnam and other countries. Inflation, greed, necessity to survive are the motivators.

What can locals do when they can't afford to buy food from a clean supply chain?

Thu, 02/03/2011 - 13:56 | 931534 Flakmeister
Flakmeister's picture

  This is called "free market capitalism", you know, the type where any regulation that infringes the right of some one to sell whatever they want as whatever they want to be a socialist plot to undermine the economy.

Thu, 02/03/2011 - 14:04 | 931570 tmosley
tmosley's picture

No, it's called "maintaining profit margins at all costs in the face of genocidal central bank policy".  It's also called "not prosecuting companies that commit assault on a massive scale because they pay you off".

You people need to get the idea that we have free market capitalism out of your head.  It's a damn lie, and you know it.

Thu, 02/03/2011 - 14:11 | 931599 hedgeless_horseman
hedgeless_horseman's picture

This, we agree on. 

Act accordingly, friend.

Thu, 02/03/2011 - 14:13 | 931609 Flakmeister
Flakmeister's picture

  No argument with your first statement.

As for the second one, free market capitalism is theoretical construct. Instead of thinking of how an "ism" can succeed, focus on how it can fail. It will liberate you. There are too many greedy sociopaths out there who don't give a fuck about anything. I am not a statist, I will not defend central planning or any such shit. I am a realist. So strictly speaking we do not disagree about your second statement.

Thu, 02/03/2011 - 15:29 | 931961 tmosley
tmosley's picture

That's the thing.  In a free market, sociopaths are forced to do good in order to be rewarded.  They have no free ride, nor any special government protection.  They get money based on their product.  If it turns out to be poison, they lose everything.

Free markets aren't magical, but they DO work.

Thu, 02/03/2011 - 15:52 | 932048 Flakmeister
Flakmeister's picture

  Well, we seem to be rewarding the sociopaths...

And without assigning the blame, the trend lines certainly took a turn for the worse in the 80s.

Thu, 02/03/2011 - 16:32 | 932257 hardcleareye
hardcleareye's picture

++FM good postings, enjoyed the give and take.

Thu, 02/03/2011 - 16:49 | 932334 Calmyourself
Calmyourself's picture

I don't like the cut of your jib..  This is central planning run amok with just enough corruption mixed in to get plastic rice..

Thu, 02/03/2011 - 14:23 | 931656 Downtoolong
Downtoolong's picture

They've been feeding plastic pellets to livestock for years, as a cheap way of keeping them satisfied for a few days before they are slaughtered. This avoids the higher cost of real food which will never have time to transform into meat on their bones. The pellets are recyclable too.

Kind of makes you wonder what the Chinese officials really have in mind for the people of Taiyuan. In addition to monitoring their rice, I'd be concerned about the content of their choice beef at the market too.

Thu, 02/03/2011 - 16:29 | 932238 hardcleareye
hardcleareye's picture

Soylent Green...

Thu, 02/03/2011 - 16:52 | 932342 Calmyourself
Calmyourself's picture

Powdered Polypropolene is commonly used in the US as a gentle laxative, as it is hydrophilic, iirc..

Thu, 02/03/2011 - 14:27 | 931672 Buttcathead
Buttcathead's picture

inflation still missing Fed goals  !  come on $400 rice !!!!

Thu, 02/03/2011 - 14:57 | 931813 topcallingtroll
topcallingtroll's picture

You know a couple of years ago all the bank would offer me for my cash was a huge dick up the ass. The carry cost of future consumption items was quite low. Now i think it is time to start using those items. This inflation blip in commodity prices is probably short lived but no reason not to stock up a bit on storable consumption items. No reason to keep much cash in the banks.

Thu, 02/03/2011 - 16:48 | 931867 plocequ1
plocequ1's picture

Plastic rice and styrofoam Sesame chicken nuggets. Man, My farts going to stink like Dragon shit

Thu, 02/03/2011 - 15:28 | 931949 Goldenballs
Goldenballs's picture

Actung,Panzers roll .................. Increase in Gold and Silver price not allowed ..............  Exterminate,Exterminate, ............  another quiet day at the office for Blythe ........

Thu, 02/03/2011 - 15:54 | 932063 Flakmeister
Flakmeister's picture



you rang?

Thu, 02/03/2011 - 18:56 | 932848 gwar5
gwar5's picture

Plastic rice? Add a little sauce, and a little marketing, and you got yourself a rockin' diet fad. 


Thu, 02/03/2011 - 19:17 | 932922 StychoKiller
StychoKiller's picture

(Sigh), you'll know it's happening when Jenny Craig hires more Asian-looking spokespersons.

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