Chart Of The Day: The World's Scariest Divergence

Tyler Durden's picture


We like to keep our charts just simple enough that a PhD in Economics can understand them; and so we present what must be the scariest chart in the world for much of the developing (and for that matter developed) world. Demand for food is rising inexorably (as is the demand for fuel) but at the same time supply is falling rapidly as the availability of arable land per capita plunges. Perhaps this (along with central bank liquidity spillovers) explains the 'paradigm' shift in staple prices. Food for thought? (pun intended)

Rising demand... meet falling supply...


and the impact...


Charts: Goldman Sachs

Your rating: None

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Fri, 11/16/2012 - 14:12 | 2988715 Neethgie
Neethgie's picture

Reckon im gonna fill my outbuilding with a fuckton of beans...

It's not that i would go hungry

its just that once others start going hungry at very low prices... shit gets bad fast.

Fri, 11/16/2012 - 14:17 | 2988751 Popo
Popo's picture

Bernanke is causing inflation in food, energy and housing.  That is the epitome of evil.

These are not "asset classes", Ben.  These are things vital for human survival.   ie:  Bernanke represents a severe security threat to the life and safety of Americans.  


Fri, 11/16/2012 - 14:26 | 2988805 Neethgie
Neethgie's picture

Shit gets real when people in the west can't afford a few beers with their food.. which wont be long.

Fri, 11/16/2012 - 15:06 | 2989003 francis_sawyer
francis_sawyer's picture

This is just a IMF/GS chart porn con job to get you to start thinking you need to accept an AGENDA 21 future...

Fri, 11/16/2012 - 15:17 | 2989045 MillionDollarBogus_
MillionDollarBogus_'s picture

Soylent Green is what came to mind after looking at this thread............

Fri, 11/16/2012 - 16:02 | 2989271 Matt
Matt's picture

Forget Soylent Green, We're going right to Shit Sandwiches:

Fri, 11/16/2012 - 16:40 | 2989499 SwampHonkey
SwampHonkey's picture

You can have your shit sandwich.....I will be 1 step above.....I my friend have the other gold..........Spam bitches its what for dinner.....Brb going to check the spam index.....

Fri, 11/16/2012 - 18:17 | 2989864 ultraticum
ultraticum's picture

Pause the video at exactly 1:34.  The label on mad scientist's refridgerator:  Shit Burger.

Fri, 11/16/2012 - 15:47 | 2989175 gabeh73
gabeh73's picture

you got that right...this is similar to the Peak Oil BS. Depopulation, one-child policy for those less equal than others and all food comes from Monsanto in order to sterlize us.


Food prices, like energy prices go in cycles related to investment etc. Shale gas was call a scam by the peak oil fear-mongers.

Fri, 11/16/2012 - 19:45 | 2990054 Seer
Seer's picture

Pack whatever toys you showed up with and go home.  You've been dismissed.

Always the same with the deniers... it's a handy excuse for not learning simple math*; it's a handy excuse for expecting others to bail out their sorry asses when reality does in fact appear.

* Denying there are limits means that you HAVE to say that there are no physical limitations on earth, that, in essence, the earth isn't a sphere (I'd tried thinking about this, that because our eyes invert all images that perhaps we are on the inside of a curve rather than the outside- if so, then there'd be a shot for a more  substantial supply of stuff being sucked from the earth [as there would be a near infinite strata below us]).  Anyway, easier test is to cram everyone into YOUR home, because, well, there are no physical limits so everyone should fit fine.

Where the fuck do you people come from?  For you I'm thinking that I'd have to root for Monsanto for ONCE in my life...

NOTE: being pigheaded usually results in slaughter...

Fri, 11/16/2012 - 18:07 | 2989833 Boris Alatovkrap
Boris Alatovkrap's picture

... or is try vodka. Vodka is powerful for drink, astringent, anesthetic, antiseptic, and but is lean, can work as automobile fuel. Did I say drink?

Fri, 11/16/2012 - 14:27 | 2988808 Dalago
Dalago's picture

I always thought that the scariest divergence was Janet Napolitano's right leg diverging from her left leg...

Fri, 11/16/2012 - 14:37 | 2988856 edifice
edifice's picture

Oh, God. Thanks... I no longer need lunch.

Fri, 11/16/2012 - 14:59 | 2988982 Overfed
Overfed's picture

Damn you for putting that image in my head!

Fri, 11/16/2012 - 15:08 | 2989011 ElvisDog
ElvisDog's picture

Where is WilliamBanzai when we need him????

Fri, 11/16/2012 - 15:21 | 2989058 Offthebeach
Offthebeach's picture

Wasn't that a scene in John Carpenter's remake of 'The Thing's? I think Kurt Russel's character had to use a sawed off, double barreled 12ga to " repulse " it. Maybe douse it in av-gas and burn it's hide off. Yeah, I'm sure it was a then juvenile Big Sis. Today? You'd need kiloton heat to off that nasty, old, Leszard Queen.

Fri, 11/16/2012 - 16:43 | 2989511 SwampHonkey
SwampHonkey's picture

Damn..... D

OH .......thats just nasty.

Fri, 11/16/2012 - 17:38 | 2989725 archon
archon's picture

... where no man has gone before.

Fri, 11/16/2012 - 18:05 | 2989825 gloogle
gloogle's picture


Sat, 11/17/2012 - 16:55 | 2992206 TBT or not TBT
TBT or not TBT's picture

That was Helen Thomas, but yeah.

Fri, 11/16/2012 - 14:32 | 2988836 orangegeek
orangegeek's picture

And those who voted Barry are getting what they asked for.  What's that you ask?  Well Barry doesn't like to talk about those things.

Fri, 11/16/2012 - 14:56 | 2988967 smlbizman
smlbizman's picture

i think the 47 million ebt users probably have a bigger effect on our food cost....when it is not your money ,you dont care the take ur local grocer...he demos his customers thru some discount card and sees how and what they buy. than adjust the pricing on these products accordingly.....

Fri, 11/16/2012 - 16:14 | 2989343 Urban Redneck
Urban Redneck's picture

They (as well as most Americans) keep voting for politicians who would rather use farmland for ethanol production than for food production.

Fri, 11/16/2012 - 19:50 | 2990073 Seer
Seer's picture

Clowns to the left of me jokers to the right...  Suckers on the "left" fell for this shit which was being pushed from the "right" (the corn lobby, which got a HUGE push to power thanks to Ag Sec Earl Butz [who also promoted HFCS]).

I've spent a chunk of my life trying to push back on ethanol/biofuels.  As Willie Nelson says, it's (biofuels) fine if it stays ON the farm.

Fri, 11/16/2012 - 15:05 | 2989002 Lore
Lore's picture

The Smart Growthers will insist that it's all due to Global Warming and save the world by Densifying your ass.

Fri, 11/16/2012 - 19:52 | 2990080 Seer
Seer's picture

As Dr. Bartlett says, smart growth is just dumb growth with taste.  And, ALL growth leads to the cliff...  one (dumb growth) just assures you get there faster.

Fri, 11/16/2012 - 16:27 | 2989417 Jack Burton
Jack Burton's picture

Quite right Popo! Bernanke is the focus of evil in the modern world. The people whose interests he serves are also part of this circle of evil.

Bernanke is focused on flooding money into banks and into stock equity. This in order to reward a certain class of people, while all this liquidity he hands out gets poured into speculation on food and fuel, which are subject to real world pressures of supply that are made ever so much worse by the Bernanke free money.

Bernanke could end up killing millions through lack of food and fuel for many a nation's lower classes of people. Bernanke sleeps well at night because his circle of bankers, hedge funders and speculators like private equity feast on the trillions he hands out to them.

Bernanke is an evil man, and serves greedy evil interests. We know who stands behind Bernanke, and the giant USA police state and vast war making potential are there to be the enforcers of the Bernanke world order. To any person world wide, I tell you that if you stand up to fight against Bernanke and his system, they will kill you, or send you to a secret CIA torture facility in which you will be beaten and water boarded into confession of crimes you did not do.

Fri, 11/16/2012 - 20:00 | 2990115 Seer
Seer's picture

Well... one KEY issue is that there are no real investments out there anymore because there's not sufficient energy to fuel growth.  Investing in food (which is human fuel) isn't evil or stupid.  And as someone who bought some Ag land I can hardly ridicule others for focusing on food.  If people are so worried about all this then rather than complain, grow food.  Sooner or later the BIG corporate Ag model will breakdown, whether from over-speculation or not.

Fri, 11/16/2012 - 14:53 | 2988955 WillyGroper
WillyGroper's picture

2 birds with 1 stone - food & fuel ;o)

Fri, 11/16/2012 - 16:19 | 2989372 AGuy
AGuy's picture

<SARC>No problem, We'll all just swipe our SNAP\EBT cards for free food!  </SARC>

<SARC Lvl2>No problem, I will just plant some Pizza and some KFC seeds on my front lawn. BTW, where can a I buy Seeds for Pizza? </SARC>

Fri, 11/16/2012 - 16:33 | 2989460 Stuck on Zero
Stuck on Zero's picture

Hoarding beans will solve two problems: food and gas.


Sat, 11/17/2012 - 06:28 | 2991229 Svendblaaskaeg
Svendblaaskaeg's picture

"beans...shit gets bad fast"


Sun, 11/18/2012 - 11:21 | 2993491 MSimon
MSimon's picture

Malthusians have been wrong for 200+ years. But this time its different.

Fri, 11/16/2012 - 14:12 | 2988716 Coldsun
Coldsun's picture

Now I'm hungry

Fri, 11/16/2012 - 14:26 | 2988777 hedgeless_horseman
hedgeless_horseman's picture




Solution:  Fresh chicken legs roasted with garlic and lemon, salad from the garden, and home made whole grain bread topped with butter from our milk cow.

Fri, 11/16/2012 - 14:27 | 2988811 Aguadulce
Aguadulce's picture

.....said no American ever.

Fri, 11/16/2012 - 15:19 | 2989047 ParkAveFlasher
ParkAveFlasher's picture

Does that farm make Twinkies? 

Fri, 11/16/2012 - 14:28 | 2988813 Dalago
Dalago's picture

With or without GMOs?

Fri, 11/16/2012 - 14:47 | 2988847 hedgeless_horseman
hedgeless_horseman's picture



Not genetically modified, apart from generations of selective breeding, but certainly all heritage breeds.

Got incubator?

Fri, 11/16/2012 - 14:54 | 2988957 Harbanger
Harbanger's picture

When I was 7 yrs old I hatched six quail eggs with an incubator I made with 2 boxes and a light bulb.  My mom wanted to kill me, we lived in an apt.

Fri, 11/16/2012 - 14:58 | 2988981 icanhasbailout
icanhasbailout's picture

They look delicious

Fri, 11/16/2012 - 15:02 | 2988990 francis_sawyer
francis_sawyer's picture

PEEPS bitchez!

Fri, 11/16/2012 - 14:38 | 2988868 RSloane
RSloane's picture

Yes!!! That looks delicious. Its feel so great to eat the food you produce. Big +100 to you HH.

Fri, 11/16/2012 - 15:07 | 2989000 Overfed
Overfed's picture


So far I've built my garden boxes, a new shed for garden tools and whatnot, planted a half dozen blueberry bushes, a bee hive, and added a hlaf dozen fruit trees to the four that were on my property. Coming in spring, poultry pen/housing, rabbit pen/housing (so they can free-range a bit), more blueberries, at least one more hive, and three more fruit trees. Actually, I'll plant the trees this fall and put in my rainwater collection system.

Self-reliance, bitchez!

Fri, 11/16/2012 - 17:40 | 2989722 hedgeless_horseman
hedgeless_horseman's picture



So glad to hear it. 

Do you have a copy of The Encyclopedia of Country Living and The French Menu Cookbook?

Both are enjoyable to read and excellent resources.

Fri, 11/16/2012 - 17:49 | 2989770 Overfed
Overfed's picture

I'll have to pick up a copy of the Country Living Encyclopedia. I'm willing to be that my wife has the second one.

Fri, 11/16/2012 - 15:05 | 2989001 forwardho
forwardho's picture

H H, I was wondering if you would post another great HOME cooked meal. You sir are a true hero.

Fri, 11/16/2012 - 16:48 | 2989536 SwampHonkey
SwampHonkey's picture

Damn Highroller.......Im going to start calling you J.D. Rockerfella

Fri, 11/16/2012 - 18:52 | 2989937 jomama
jomama's picture

tomatoes in november, eh...?

Fri, 11/16/2012 - 20:29 | 2990225 Kali
Kali's picture

yes, mine in my greenhouse are doing just fine.

Do NOT follow this link or you will be banned from the site!