Forget Europe... This is a REAL Crisis to Be Afraid Of

Phoenix Capital Research's picture


We need to address a MAJOR situation that is developing: the drought in the US and its impact on US crops.

The US is experiencing its worst drought since 1956. Altogether 63% of the lower US 48 states are experiencing a drought. As a result of this, the USDA has said that 50% of the US’s corn crop will be in poor to very poor condition.

What does this mean? That the US will have a very VERY low corn crop. This in of itself is bad. But when you consider that corn supplies are at their lowest levels in 17 years, you’ve got a recipe for a serious corn shortage.

Few people understand how large a part of the US industrial food chain is tied to corn.

Corn feeds the chickens, pigs, cows, turkeys, and lambs that are the primary sources of meat in the US. It also now feeds the most common fish in the US diet (catfish, tilapia, and salmon), all of which have been genetically engineered to eat the vegetable.

Corn feeds the chickens that provide us with eggs. It also feeds the cows that provide us with dairy products (butter, yogurt, milk, cheese). Even if you avoid milk and drink soda or beer, you’re still drinking corn in one form or another: virtually all sodas contain high fructose corn syrup, while the alcohol in beer is fermented from glucose that originated in corn.

Corn is in margarine, coffee sweetener, icing, gravy, hot sauce, mayonnaise, soups, cake mixes, snacks foods, salad dressings, frozen waffles, and on and on. If you eat produce in any form, it’s likely got corn in or on it: corn was in the pesticide, the cardboard in which it was shipped, even the wax applied to its surface to give it a sheen.

Step away from the food section in a supermarket and you’re still surrounded by corn. Corn is in toothpaste, disposable diapers, matches, trash bags, disposable batteries, make up, even magazines covers (again the sheen).

According to Michael Pollan, author of The Omnivore’s Dilemma, corn is in roughly 25% of all items located in your average grocery store. So a corn shortage means BIG TROUBLE for the US when it comes to food.

The situation is equally gloomy for soybeans, the second largest produced crop in the US: today inventories are at their lowest levels in 32 years. And the current drought has resulted in 39% of this year’s soybean crop being in poor to very poor condition.

What does this all mean? That we’re likely heading into a food crisis in the US regarding corn and soybeans.

Best Regards,

Graham Summers

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Good Investing!


Graham Summers


PS. We also feature four other reports ALL devoted to helping you protect yourself, your portfolio, and your loved ones from the Second Round of the Great Crisis. Whether it’s my proprietary Crash Indicator which has caught every crash in the last 25 years, or how to stockpile food (where to get it, what to buy, and how to store it) our reports cover this information in great detail.


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Element's picture

According to your many detailed predictions, Graham, the Eurozone is supposed to have collapsed by the end of next week.

You bashed us mercilessly with your predictions for the inevitable death of the eurozone by the end of this Summer.

It would be best if you just came out and admitted that you're really, really crap at analysis and prediction.

And quit peddling fear all the time you pathetic fucking retard!

It's a drought, they happen, get over it.

hungrydweller's picture

Now that he's "forgotten Europe" it may be an indicator that something is finally going to happen.  Probably not though.  When I see his first article stating that the ECB can kick the can indefinitely, then the jig is up.

Racer's picture

And one of the reasons the US fatties are so grossly obese is directly down to corporations peddling maize  high fructose syrup.. and got the US people hooked on it... it is far cheaper to produce than proper food that would create a healty population that didn't need so many medical props to keep them alive

Aquaman's picture

Less than 15% of the corn is used in human food stuffs. Most goes into animal feed and ethanol. So when your ribeye goes to $35, does that count as inflation or will the govt find a way to pull that out of the number too. How could the fed print in that type of environment? They will be then they'll just change the game to chinese checkers.

taeonu's picture

They've already figured out how to scew this number.  It's called Substitution.  When you can't afford steak, you'll swith to dog food which is cheaper.  Tada - deflation!

Chapter 16 (Fuzzy Numbers - Part 1 of 2):

Dr. Martenson explores how inflation and GDP are measured, how their measurement has changed over years, and what that means concerning the integrity of these government statistics. Substitution, Weighting, Imputations, and Hedonics and their effects on calculating inflation and GDP are each examined. Dr. Martenson traces the social impact of these shady statistics, and finishes by showing how a dishonest determination of inflation further deforms an already flawed GDP calculation.

roadhazard's picture

Bernie sez the cost of that rib eye is, "transitory"... along with your paycheck.

Mjolnir's picture

Butter on soothe the hemi's

What will i do without it?

jb.mcmunn's picture

Rip Van Winkle just woke up and realized there is a crop failure? Must have fallen asleep waiting for Europe to melt down in June as predicted. Oh? It's August now?

We export a lot of food. If we don't have a surplus the rest of the world starves. I would avoid visiting those places around the globe where people make $4/day and spend $3 of it on food.

Praetorian Guard's picture

Which makes one wonder why the US sold one of the largest corn shippments in US history to Mexico - given the shortage that we may have. It also makes you wonder why the USDA is purchasing up all the beef and sending it to food banks... hmmmm, buy low, while farmers dump beef on the markets... causing a spike and shortage later on????

Gromit's picture

Good news for my Argentinian friends...

walküre's picture

What? FIAT doesn't feed people? Can we not just print some more to supplement the loss of corn and corn related products?



FUCK THEM! They will find out the hard way!

wcvarones's picture

Food is a tiny percentage of US consumption.  The Feds can easily hand out enough food stamps to give everyone subsistence food.

I'd be more worried about energy prices and the unsustainable cost of global military empire.

Metalredneck's picture

Thank God he found a new crisis.  I was worried I hadn't heard from his Royal Doomerness.

freedogger's picture

The other big crisis if this drought continues is Mississipi barge transport running aground. Already causing issues:



treasurefish's picture

Let them eat Federal Reserve Notes (FRNs).

shovelhead's picture

Bumper crops of both in Brazil.

No doubt food prices are rising but the shelves won't be empty. Smaller choices and much more expensive, to be sure but not empty.

Bernanke will print to keep the big boys profiting in those commodities because the bonuses have been lean lately.

You just won't see it in the NYTimes.

walküre's picture

Those crops are bought and planned for.


Jack Sheet's picture

Shit on toast, is this joker for real ?

Sutton's picture

aAnd you know our Marxist Boss won't hesitate to jam on price controls.  which means no food outside of black market and riots by the Free Shit Army. 

Itch's picture

His crash indicator has caught every crash in the last 25 years...i wonder does it predict mental breakdowns too?

walküre's picture

No more corn syrup? Watch Americans live longer and healthier lives as result.

Monsatan can eat the dirt they contaminated and may they be drowning in all the shit from pigs and cows which are raised on Monsatan GMO products.

The drought is God's way of setting the farmer's straight and shooting Monsatan's lab rats into their kneecaps.

GOSPLAN HERO's picture

Sugar is sugar, whether it be from beet, cane, or corn.

... and sugar kills.


Lohn Jocke's picture

Agreed. Those who panic over GMO Ag need a refresher in biology. Or simple microeconomics.

davood's picture

They need to send this genetically modified "corn" back to Hell from whence it came, along with that Corporation from Hell.

Maybe this draught is a sign.

Leopold B. Scotch's picture

Draught?  What's on tap??!!?  Hopefully none of that shytty corn beer mentioned.

Your Creator's picture

It's all too corny.

falak pema's picture

lol, summer blues for graham, euro doesn't catch on so change tack! 

Less corn on the cob; but more goes to energy and too bad for the food segment...

Without corn flakes and soybeans how do we eat breakfast and dinner? That beef on my steak ate soybean. 

Itch's picture

Man cant live on gibberish alone!

akak's picture

Clearly you have never read the 14,382 ZH posts of AnAnonymous.

Itch's picture

With all due respect i did read 3 of them.

No Euros please we're British's picture

This is very interesting, is there some in depth report I could buy to tell me how to protect myself from these events?

Itch's picture

Why dont you jst bend over and let me fuck you instead.

Leopold B. Scotch's picture

Corn in your beer?!?! Bahh!!!!  What kind o' Crrrrrraaaaap you drinkin' there, mate?

My beers' fermented sugars are proper malts, ye bastard, you.

dugorama's picture

Not even Bud or Miller have corn in them.  They at least opt for rice to "augment" their barley.  But you are right.  The major reason the micro and medium breweries are killing the majors is that they all brew all barley.  corn is used for lightenin' or squeeze, but never beer.


and when an author states as fact something widely known to be false, then I auto-delete everything else they say

walküre's picture

Corn syrup is a wide spread filler. Wouldn't be surprised to find it used in the industrial production of beers.

But that's besides the point. The author refers to "The Omnivore's Dilemma" which claims that 25% of products in your grocery store contain corn or soy in one form or another.

The drought is a big deal.

Lohn Jocke's picture

A lot of DDG's go into beer, an ethanol byproduct. Problem: DDG's have an increased concentration of Aflatoxin which is showing up with the corn being harvested now.

bank guy in Brussels's picture

Yes, Graham, forget Europe ... you have not been doing that well at describing it

walküre's picture

Nobody has nailed Europe.

We're all delusional to think the status quo is in any way, shape or form either sustainable or reasonable.

Alas, we can all pretend that pigs do fly and money grows on trees. Living in Lalaland is so much more fun than facing reality.

Lohn Jocke's picture

Cattle Farmers are liquidating their herds because of the high corn costs. BTFD on Beef and ride that bitch up for the next three years.