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Beef Prices Surge Most In A Decade As Food Inflation Soars

Tyler Durden's picture




 

Just a month ago we warned that food inflation was on its way. Today we got the first confirmation that problems are on their way. While headline data washes away the nuance of what eating, sleeping, energy-using human-beings are paying month-in and month-out, the fact, as WSJ reports, that beef prices surged by almost 5% in February - the biggest change since Nov 2003 - means pinching consumers and companies pocketbooks that are still grappling with a sluggish economic recovery. "Things are definitely more expensive," exclaimed on mother of three, "I can't believe how much milk is. Chicken is crazy right now, and beef - I paid $5 a pound for beef!" Just don't tell the Fed!

Via WSJ,

 

Of course, it's not just beef...

...prices also are higher for fruits, vegetables, sugar and beverages, according to government data. In futures markets, coffee prices have soared so far this year more than 70%, hogs are up 42% on disease concerns and cocoa has climbed 12% on rising demand, particularly from emerging markets.

 

 

...

 

Food prices have gained 2.8%, on average, for the past 10 years, outpacing the increase in prices for all goods, which rose 2.4%, according to the government.

 

...

 

Still, the price increases pose a challenge for food makers, restaurants and retailers, which must decide how much of the costs they can pass along and still retain customers at a time of intense competition and thin profit margins. During previous inflationary periods, food makers switched to less-expensive ingredients or reduced package sizes to maintain their profit margins. Retailers and restaurants usually raise prices as a last resort.

 

...

 

In California, the biggest U.S. producer of agricultural products, about 95% of the state is suffering from drought conditions, according to data from the U.S. Drought Monitor. This has led to water shortages that are hampering crop and livestock production.

 

U.S. fresh-vegetable prices that jumped 4.7% last year are forecast to rise as much as 3% this year, while fruit that gained 2% last year will rise up to 3.5% in 2014, according to the USDA.

But, as The Wall Street Journal notes, there are more consequences:

Food-price increases are a particularly touchy issue for emerging markets, where spending on food accounts for a higher share of monthly budgets than in wealthier countries.

 

In 2008, a spike in food prices caused riots from Haiti to sub-Saharan Africa and South Asia. Three years later, in 2011, rising food prices were a factor behind the Arab Spring protests in North Africa and the Middle East that ultimately toppled governments in Tunisia and Egypt.

 

The increase in global prices last month surprised some economists, and raised the specter of more severe increases that could hit the world's poorest countries, economists said.

 

And it's set to get worse:

"To be honest, until a month ago, our feeling and thinking was that most markets were well-supplied," said John Baffes, a senior economist at the World Bank. "Now, the question is: Are those adverse weather conditions going to get worse? If they do, then indeed, we may see more food price increases."

 

Drought, harsh winter seen fueling higher food prices, Chris Christopher, economist at IHS Global, writes in client note.

 

Consumers may face “surge ahead”

Just don't tell the Fed - or they mighy just take the punchbowl away...

 

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Wed, 03/19/2014 - 23:05 | 4570796 TheMeatTrapper
TheMeatTrapper's picture

I trap my meat supply - and get paid to do it. To hell with factory fed, steroid injected, growth hormone laced, antibiotic soaked "meat". My freezer is full.

Learn to Trap Your Food

 

 

Wed, 03/19/2014 - 23:07 | 4570802 Groundhog Day
Groundhog Day's picture

BEEF! It's what was for dinner

Wed, 03/19/2014 - 23:12 | 4570824 LetThemEatRand
LetThemEatRand's picture

I'm partial to Buffalo.  Yum.

Wed, 03/19/2014 - 23:19 | 4570843 TahoeBilly2012
TahoeBilly2012's picture

$4.99 for Eel River Organic coastal here in town...I can't even explain how damn good it is and the prices seems very low for how amazing it is. 

Wed, 03/19/2014 - 23:25 | 4570876 AlaricBalth
AlaricBalth's picture

The Bureau of Labor Statistics states that consumers can and do, to some degree, insulate themselves from the impact of higher prices by adjusting their spending to favor relatively lower-priced goods or services. This is known as the substitution effect, and it is one of the hedonic methods the BLS uses to understate inflation.

What the BLS fails to take into consideration is the fact that a large portion of the populace has "substituted" their food choices down to the lowest quality and there isn't much left to substitute. What do they expect people to eat when even the lowest quality food prices begin to skyrocket.

I haven't had a good mud pie since I was six, but I guess that's next.

Wed, 03/19/2014 - 23:46 | 4570977 King_Julian
King_Julian's picture

"What do they expect people to eat..."

i-Pads, of course!

Thu, 03/20/2014 - 02:18 | 4571318 National Blessing
National Blessing's picture

Inflation?  Get real.  I just ain't seeing it.  Bitches.

Thu, 03/20/2014 - 06:22 | 4571545 johnQpublic
johnQpublic's picture

53 bucks for a 14oz grass fed dry aged new york strip

worth every penny

Thu, 03/20/2014 - 06:54 | 4571575 clooney_art
clooney_art's picture

It's about time to change and not discriminate.

Horse, Zebra, Giraffe, Hippo meat should replace the high cost of beef.

Thu, 03/20/2014 - 07:49 | 4571643 old naughty
old naughty's picture

What about not eating meat?

No way?

Ok, forget I asked.

Thu, 03/20/2014 - 08:37 | 4571733 wallstreetapost...
wallstreetaposteriori's picture

let them eat all those worthless bitcoins.... good thing about higher food costs though... the obesity rate should fall off a cliff for poor people as they starve.  I guess BHO can parade around and pat himself on the back as he gives all the credit to O-care.

Thu, 03/20/2014 - 06:25 | 4571550 Its_the_economy...
Its_the_economy_stupid's picture

7 weeks and flogging the blog? Crap I didn't even comment till I followed for 7 months. Always was a late bloomer.

 

Thu, 03/20/2014 - 03:37 | 4571420 Obese-Redneck
Obese-Redneck's picture

Here in the Deep South , it's pushing 5.99. While Mrs. O-R is pushin' 425. And I don' mean per poun' I mean she IS 420 pounds lord bless every ounce.

Thu, 03/20/2014 - 12:51 | 4573083 Rafferty
Rafferty's picture

Wait till Latoya and the rest of the Free Shit Army get hit by this.  batten down the hatches!

Thu, 03/20/2014 - 01:22 | 4571233 Independent
Independent's picture

At least they got mud (which meand water is around) some places don't have any mud period only sand.  Also why arent they fishing they are on a freakin huge island surrounded by water

Thu, 03/20/2014 - 00:52 | 4571172 FreeMktFisherMN
FreeMktFisherMN's picture

Hedonics is complete hogwash and immoral. To gauge an effect of inflation--rising prices--one has to see what happens to the SAME commodity or whatever. I want prices to be FALLING over time, not even 'stable'. If there is great productivity in crops or whatever, and prices are 'stable' but if it was sound money would have fallen by a sizable amount, then one has to take into account that opportunity cost/what would have been. Prices should fall over time. Priced in gold things do, in fact. Obviously supply/demand of commodities due to weather, geopolitical situations, etc. fluctuates, but priced in terms of sound money things go down or at least stay relatively stable.

What matters is the relative move. Don't just go off the accounting method because it doesn't take into effect what should have been the price had the dollar been sound. And even the accounting measure is BS as prices are rising a lot more than they say, and again, that doesn't take into account the 'what should have been' factor if say a huge surplus crop but prices still rose 2%, instead of falling by 7%. 2% accounting but 9% in reality (reflects the malinvestment as well).

Thu, 03/20/2014 - 06:31 | 4571555 Its_the_economy...
Its_the_economy_stupid's picture

A buddy worked for a company that tracked supermarket prices. He would walk into a store and w a handheld device price every single itme for sale. Every one. Then the company would sell  the data to competing stores. Why would a store allow him to price their wares? Cause they were buy the same data from the same company pricing others stores and it was part of the contract ot allow pricers in their store as well.

How does the FED get their data.

 They "call around and ask on the phone". No, you can't make this s--- up.

Thu, 03/20/2014 - 07:06 | 4571590 RabbitChow
RabbitChow's picture

Well, like the inimitable Alan Greenspan once said, the gummint can guarantee the payment of dollars in terms of social security checks and all the other payments that are required, but they will never be able to guarantee the purchainsg power of those dollars.

What you see coming is the perfect storm, where shortages push prices up, and repudiation of Treasuries will further erode the dollar into hyperinflationary mode.  It may be too late to defend the normalcy bias.

Thu, 03/20/2014 - 07:06 | 4571591 RabbitChow
RabbitChow's picture

Well, like the inimitable Alan Greenspan once said, the gummint can guarantee the payment of dollars in terms of social security checks and all the other payments that are required, but they will never be able to guarantee the purchainsg power of those dollars.

What you see coming is the perfect storm, where shortages push prices up, and repudiation of Treasuries will further erode the dollar into hyperinflationary mode.  It may be too late to defend the normalcy bias.

Wed, 03/19/2014 - 23:27 | 4570890 LetThemEatRand
LetThemEatRand's picture

By and large, better than organic beef, and lower fat while tasting just as good or better.

Wed, 03/19/2014 - 23:42 | 4570968 prains
prains's picture

alberta beef, mmmm, good

Wed, 03/19/2014 - 23:57 | 4571011 Rock On Roger
Rock On Roger's picture

Alberta bison - pure meat.

Thu, 03/20/2014 - 00:06 | 4571034 prains
prains's picture

...and only 10 minutes away at Elk Island Park. However they're generally less cooperative when I bring out the BBQ. I think they sense somtings up!

Thu, 03/20/2014 - 00:23 | 4571107 Independent
Independent's picture

Humans, the other white meat, and since they eat a lot of chicken you can be sure they TASTE LIKE CHICKEN when the time comes and you have to Trap your Fellow Survivors LOL. Just ask the guys that served up Rockerfeller in Papua New Guinea

Thu, 03/20/2014 - 03:46 | 4571429 Kirk2NCC1701
Kirk2NCC1701's picture

Aka Long Pork.

Thu, 03/20/2014 - 01:38 | 4571268 Rock On Roger
Rock On Roger's picture

Sum Ting Wong

They are cunning beasts, they certainly know when my family is getting hungry.

My bison don't seem to like it when I show up with a long stick in my hands.

Much wiser than a sheep.

 

Long Live Allison - HeHeHe ;-)

Fucking Bilderburger.

 

Stack On

Thu, 03/20/2014 - 01:00 | 4571179 bankerbackbacon
bankerbackbacon's picture

Good luck with the CJD slow onset brain omlet.

Kissingers "soft kill".. Its more than just a British problem, its global.

 

http://www.nature.com/nature/journal/v385/n6613/abs/385197a0.html

Thu, 03/20/2014 - 14:44 | 4573525 Cthonic
Cthonic's picture

Also transmissible via iatrogenic routes like transfusion and surgery.  At one point didn't they block Brits from donating blood?

http://www.theguardian.com/uk/2008/aug/03/bse.medicalresearch

http://www.plosone.org/article/info%3Adoi%2F10.1371%2Fjournal.pone.0015626

Thu, 03/20/2014 - 00:12 | 4571064 Independent
Independent's picture

To think some people were even arguing with us about Inflation even existing.  Here's the BEEF now suckers.

Wed, 03/19/2014 - 23:17 | 4570839 Buck Johnson
Buck Johnson's picture

They can't hide the inflation anymore with smaller packages anymore.  It's coming at full tilt because all that money we printed is finally hitting our shores like a tsunami.

Thu, 03/20/2014 - 00:52 | 4571171 Renewable Life
Renewable Life's picture

People haven't seen shit yet!!!!

Wait until people realize all the cheap food they bought from Cali isn't coming East his year? No water, no food, I saw a 200 cattle car long train, go by this week, moving east, filled with cattle, that don't have water and are going to slaughter or moving east!!

People say so what, well those cattle should be being breed and instead are being slaughtered because no water AND prices are so fucking high, the farmers are cashing in!! No breeding, no future cattle, no water, the cycle is broken, prices spike and cattle stocks continue to spiral downward, bye bye red meat for the average American!!!!

It could take decades to bring this back into balance, if ever, depending on how bad it gets!

Thu, 03/20/2014 - 04:41 | 4571465 Hmmmmm
Hmmmmm's picture

Sold a 100+ heifers and steers last month and couldn't be happier unless I'd been paid in Au.

Thu, 03/20/2014 - 13:09 | 4573172 quasimodo
quasimodo's picture

The old man is feeling the same way after selling 83 head back a few weeks......now, about buying it in the store, a different story.

We just set one aside when needed, raise it on a mostly grass fed diet and little corn toward the end to finish, no drugs ever...makes for some mighty fine natural beef. Not organic but it's the next best thing.

Scottish Highland makes for some really healthy and tasty meat as well, but they are some shaggy creatures.

Thu, 03/20/2014 - 13:10 | 4573173 quasimodo
quasimodo's picture

Dupe, sorry

Thu, 03/20/2014 - 08:04 | 4571664 Waterfallsparkles
Waterfallsparkles's picture

People may just live longer without eating beef or much less of it.  This is bad for the Government as they will have to pay Social Security longer.  Also, bad for the Medical establishment as more people may not get Cancer.

Wed, 03/19/2014 - 23:31 | 4570911 tmosley
tmosley's picture

Why trap meat when you can just eat Soylent?

http://blog.soylent.me/

Thu, 03/20/2014 - 03:51 | 4571432 OldPhart
OldPhart's picture

No change in the CPI as food isn't counted anyway.  And Spam has always been a substitute for T-bones since 'forever'.

Thu, 03/20/2014 - 04:05 | 4571443 Offthebeach
Offthebeach's picture

More NSA/Google game apps are free, so that compensates.

Thu, 03/20/2014 - 07:34 | 4571625 RSDallas
RSDallas's picture

Grizzly Adams returns!

Wed, 03/19/2014 - 23:06 | 4570801 TeamDepends
TeamDepends's picture

Poward!

Wed, 03/19/2014 - 23:07 | 4570804 you can't fix stupid
you can't fix stupid's picture

$3.49/lb for freshly ground beef and $7.99 for Prime Grade NY Strips. Guess there is no inflation in Texas.

Thu, 03/20/2014 - 00:49 | 4571166 slightlyskeptical
slightlyskeptical's picture

$3.99 /lb advertised here in Palm Beach. You have to buy 20 lbs. but I think steaks are better AFTER BEING THAWED OUT. The two other stores i shop have sales for 5.99 and 7.99 this week on the same. Ground beef is actually more than $3.99. HMMM...beter checks those steaks carefully.

Thu, 03/20/2014 - 07:10 | 4571593 RabbitChow
RabbitChow's picture

$2.41 per pound, hanging weight, sides, cut anyway you want, from a farmer friend in Bedford County, PA.  Registered PA dept of Agriculture grass fed Angus.  95+% lean, very tender.

Wed, 03/19/2014 - 23:08 | 4570806 Seize Mars
Seize Mars's picture

Food inflation: or as I like to call it, "inflation."

Wed, 03/19/2014 - 23:13 | 4570825 NOZZLE
NOZZLE's picture

Its okay the contents of the pachage are smaller but the cows are bigger than they were 50 years ago.

Wed, 03/19/2014 - 23:16 | 4570837 FreeMktFisherMN
FreeMktFisherMN's picture

they'll talk about supply/demand idiosyncrasies like weather and whatnot, but what are commodties paid with? And what is happening to the supply of what they are being paid with?

Wed, 03/19/2014 - 23:23 | 4570861 FieldingMellish
FieldingMellish's picture

My neighbor just raised the price of his beef today to $5.50 a pound. Good thing I can hedonically substitute... here, kitty, kitty, kitty!

Thu, 03/20/2014 - 00:16 | 4571067 Independent
Independent's picture

YOU BASTARD!!  Just for the record I slept around a lot and have foot and mouth disease and a heavy parasite burden, just like America LOL.  Also by the way I am from the California and Oregon coast and have been having a metallic taste in my mouth last few months.

Wed, 03/19/2014 - 23:24 | 4570867 sangell
sangell's picture

SNAP EBT cards are computed using hedonically adjusted prices. Rat, cat and dog meat can replace chicken, pork and beef.

Thu, 03/20/2014 - 01:32 | 4571250 El Vaquero
El Vaquero's picture

Alpo Soufflé!

Thu, 03/20/2014 - 02:08 | 4571303 Creepy Lurker
Creepy Lurker's picture

http://www.youtube.com/watch?v=oYwysaFx4vY

Best burger I've had in years.

Wed, 03/19/2014 - 23:24 | 4570870 Judge Crater
Judge Crater's picture

There is no food inflation for the 1%, everything is a deductible business expense. Off topic: Health conspiracy theories are widely believed. Kim Painter, Special for USA TODAY 5:54 p.m. EDT March 19, 2014

http://www.usatoday.com/story/news/nation/2014/03/19/health-conspiracy-t...

Nearly half of American adults believe the federal government, corporations or both are involved in at least one conspiracy to cover up health information, a new survey finds.

Conspiracy theories on everything from cancer cures to cellphones to vaccines are well known and accepted by sizable segments of the population, according to a research letter published this week in JAMA Internal Medicine.

The findings reflect "a very low level of trust" in government and business, especially in pharmaceutical companies, says study co-author Eric Oliver, a professor of political science at the University of Chicago. They also reflect a human tendency to explain the unknown as the work of "malevolent forces," he says.

The online survey of 1,351 adults found:

• 37% agree the Food and Drug Administration is keeping "natural cures for cancer and other diseases" away from the public because of "pressure from drug companies."
• 20% believe health officials are hiding evidence that cellphones cause cancer.
• 20% believe doctors and health officials push child vaccines even though they "know these vaccines cause autism and other psychological disorders."
• Smaller numbers endorse theories involving fluoride, genetically modified foods and the deliberate infection of African Americans with HIV.
• 49% believe at least one of the theories and 18% believe at least three.

"There are a lot of people out there that harbor these beliefs," Oliver says, even in the face of scientific evidence to the contrary – such as the many studies showing no link between autism and vaccines.

Additional research shows similar numbers of people believe political conspiracy theories, Oliver says.

Where do people get this stuff? When it comes to health, sources include friends and family, but also celebrity doctors online and on TV, according to survey results not included in the research letter, Oliver says.

The beliefs also go along with certain health behaviors, the survey found. Those who believe at least three health conspiracy theories are less likely to use sunscreen, get flu shots or get check-ups and are more likely to use herbal remedies and eat organic foods.

"What we take away from that is that people who embrace these conspiracies are very suspicious of traditional evidence-based medicine," Oliver says.

Some of those people already have read about the study and contacted Oliver to share additional theories.

"My inbox this morning was flooded," he says.

Wed, 03/19/2014 - 23:24 | 4570871 Flakmeister
Flakmeister's picture

How do you like your cost push inflation from the beast with two heads better known as Peak Oil and Climate Change? 

That's what happens when you can't water and feed them for a profit...

Wed, 03/19/2014 - 23:27 | 4570888 Soul Glow
Soul Glow's picture

Peak oil is real.  Climate change isn't.

Wed, 03/19/2014 - 23:32 | 4570917 Flakmeister
Flakmeister's picture

Tsk, tsk, tsk....

You really have to come up with something better than that...

Wed, 03/19/2014 - 23:53 | 4571002 Rock On Roger
Rock On Roger's picture

The end of cheap crude oil.

The climate has changed daily since the planet formed.

 

Stack On

Thu, 03/20/2014 - 00:06 | 4571033 Flakmeister
Flakmeister's picture

Yep, climate has been slowing changing for a long time...

BTW, when people talk of climate they refer to long term averages of at least 20-30 years, daily changes are what is known as weather....

As seen here

http://en.wikipedia.org/wiki/File:All_palaeotemps.png

the range of the average global temperature has not varied by 2.5 C (or 4.5 F) for the past 5 million years or so...

Thu, 03/20/2014 - 01:14 | 4571217 Rock On Roger
Rock On Roger's picture

According to your link the temperature trend is down since the beginning.

The current cycle looks no different than the previous few cycles.

Humans are no more significant to the climate than dinosaurs were.

And I agree that we shouldn't be polluting the earth's air as much as we do.

We're gonna kill ourselves before we kill the planet.

 

Stack On

Thu, 03/20/2014 - 01:49 | 4571277 Flakmeister
Flakmeister's picture

Yes, and do you think the current temperture reflects all the C02 that is up there and all the carbon that we have already committed to burning? As it is, C02 levels have not been this high for at least 2 million years...

Did you notice that little note that said Antarctic Deglaciation? That's where we will well be on our way to ~200-300 years at our current pace... You know the last time C02 got up to 700 ppm or so...

If you don't think that we are affecting the climate you either don;t believe that we are responsible for the increase in C02 or that you don;t think C02 is a powerful driver of global temperatues... There is basically zero evidence against either conclusion. And if you don;t know the difference between a condensing and non-condensable GHG, you really should step back from the keyboard as you are out of your league...

BTW, this ain't about killing the planet...

Edit: Should have mentioned that the trend for the past 8000 years or so was cooling (just as expected from variations in the earths orbit), we changed that pretty damn quick when we started seriously burning coal in the mid 19 century.... 

Thu, 03/20/2014 - 03:06 | 4571393 Rock On Roger
Rock On Roger's picture

Don't worry, I looked at the chart, I can see. CO2 is only one component of the atmosphere.

As I said, we shouldn't be polluting our atmosphere as we do.

Burn gaz bitchez. Clean fuel. One part carbon, 4 parts hydrogen.

Every living thing makes it flakman, dead or alive.

As long as there is life on this planet there is fuel.

 

Now CH4 and CO2 both contribute to the insulating qualitiies of the atmosphere. Both occur naturally.

What are we to do Flakmeister? What is your solution?

I say we burn gaz and educate women.

 

Stack On

 

 

Thu, 03/20/2014 - 05:44 | 4571516 UselessEater
UselessEater's picture

man made climate change is obviously why Rhodesia went from bread basket to Zimbabwean basket case in less than a generation!

Thu, 03/20/2014 - 09:06 | 4571835 Flakmeister
Flakmeister's picture

What you think has very little to do with reality...

Without that 400 ppmv of C02 the earth would be a frozen iceball for all intents and purposes, 34 C or 60 F colder...

Once you realize that coal and oil are basically fossilized solar power, the answer is obvious...

Thu, 03/20/2014 - 10:28 | 4572158 Abaco
Abaco's picture

At the end of the last ice age, when the glaciers began retreating, what human activity was the cause? If it wasn't human activity that caused the warming and glacial retreat what was the cause? How has that cause, or causes, been eliminated as the cause of the slight warming detected from about 1980 - 2000?

Thu, 03/20/2014 - 10:41 | 4572218 Flakmeister
Flakmeister's picture

Google Milankovitch cycles....

Wed, 03/19/2014 - 23:31 | 4570912 Flakmeister
Flakmeister's picture

BTW, eye of round roasts are $3.99 a lb here, pork loins go for $2.49, all you have to do is slice em' yourself...

Similarly Beef Strip Loins go for $7.99, I like them cut about 1 1/4" thick....

Thu, 03/20/2014 - 04:07 | 4571445 OldPhart
Thu, 03/20/2014 - 09:21 | 4571882 Flakmeister
Flakmeister's picture

Steven fuckin' Goddard, now that is truly funny...

If he pissed down your leg and told you it was raining, you would probably believe him...

Let me know when he graduates from the blogs and tries to publish the nonsense you linked...

While you are at, ask Mr. Goddard to explain the independent Berkely Earth results....

http://berkeleyearth.org/summary-of-findings?/study/

You know the study? It's the one that was partially funded by the Koch's and WUWT was sure that they would "set shit straight"...

Turns out they did....

Wed, 03/19/2014 - 23:25 | 4570878 Crawdaddy
Crawdaddy's picture

.guv only counts pink slime and that shit is stable at .39/ lb. But last month it was .40 so OMGDEFLATIONPRINTOLYELLENPRINT!

Wed, 03/19/2014 - 23:26 | 4570881 Jungle Jim
Jungle Jim's picture

 ' The gunslinger approached the bar. “You got hamburger?”

“Sure. It’s dear, though.”

“I figured. Gimme three burgers and a beer.”

Again that subtle shift in tone. Three hamburgers. Mouths watered and tongues licked at saliva with slow lust. Three hamburgers.

“That would go you five bucks. With the beer.” 

The gunslinger put a gold piece on the bar. Eyes followed it. 

There was a sullenly smoldering charcoal brazier behind the bar and to the left of the mirror. The woman disappeared into a small room behind it and returned with meat on a paper. 

She scrimped out three patties and put them on the fire. The smell that arose was maddening.' 

-- Stephen King, _The Gunslinger_

Wed, 03/19/2014 - 23:41 | 4570965 EmmittFitzhume
EmmittFitzhume's picture

Dark Tower is the best series ever made. 

Wed, 03/19/2014 - 23:26 | 4570883 Soul Glow
Soul Glow's picture

But Yellen's Fed has inflation at 2.5%!  How could they be wrong?

Thu, 03/20/2014 - 00:09 | 4571049 Al Huxley
Al Huxley's picture

They aren't wrong - you must be imagining things, and remember, food and energy don't count anyway.

Wed, 03/19/2014 - 23:27 | 4570892 Jungle Jim
Jungle Jim's picture

"What you got in your cooler came from something with three eyes, six legs, or both — that's my guess, lady." -- Stephen King, _The Gunslinger_

Wed, 03/19/2014 - 23:30 | 4570903 Wait What
Wait What's picture

the big box store i stopped through on the way home this evening contained a total of 11 shoppers. that's a lot of sq. footage per customer. add to that all of the empty commercial space i've seen along one of the most affluent stretches of beach front property in America, gas prices that just broke above $4 in the same area, and it's looking very much like 2008. deja vu all over again.

Wed, 03/19/2014 - 23:41 | 4570966 Azwethinkweiz
Azwethinkweiz's picture

$4.15 at one gas station, $4.51 at the one DIRECTLY across the street. The expensive gas station was packed....wanna know why? I took a look at the plates. All government vehicles. Tax payers dollars hard at work....paying a government employee+pension to stand and fill up a car at the overpriced station. And this, my friends, is how government works. #rageagainstthemachine

Thu, 03/20/2014 - 01:02 | 4571188 Babaloo
Babaloo's picture

Sure, completely believeable.

And the dumb asses here upvote you -
and then criticize the "sheeple," not realizing it's them.

Thu, 03/20/2014 - 01:09 | 4571207 Azwethinkweiz
Azwethinkweiz's picture

Awwww, how cute. Someone who got paid to pump gas. And you view ZH? That's adorable.

Wed, 03/19/2014 - 23:32 | 4570915 Tulpa
Tulpa's picture

But... it was really cold for some reason during the past few months, with cows dying of hypothermia left and right.

Wed, 03/19/2014 - 23:36 | 4570937 Big Brother
Big Brother's picture

I realize food costs are rising in the US as elsewhere in the world, but as a percentage of income, the US still spends the least percentage of income on food.  I couldn't think of where I saw this and then I did a google search...

http://www.economist.com/blogs/graphicdetail/2013/03/daily-chart-5

Yeah, it's bad, and it will get worse.

 

Wed, 03/19/2014 - 23:39 | 4570954 Flakmeister
Flakmeister's picture

When food costs exceed ~40% of gdp per capita you invariably see riots...

Wed, 03/19/2014 - 23:56 | 4571010 Big Brother
Big Brother's picture

40% seems like a consistent, immutable law.  The article perports that Belarus and Cameroons also experience the same predictament, but no mass food riots to note.  I posit that the food production output of the land in those countries would exceed that of North Africa.

As for the general population in the US will first need to "hedonically adjust" their diets down to rice, lentils, flour, and cat food.  So at that rate, we probably won't see food riots the likes of Egypt or Tunisia in my life-time.

Thu, 03/20/2014 - 00:11 | 4571060 Flakmeister
Flakmeister's picture

Yeah, but we are talking about averages, a first order approximation, what you really need is the fraction of population that does not meet the cut...

But I do agree that the US will be one of the last to have food riots, Pakistan/Egypt and a host of other over populated countries will not be so lucky...

Thu, 03/20/2014 - 00:19 | 4571083 Independent
Independent's picture

Never knew the Hungarians were such BOOZERS, WOW

Thu, 03/20/2014 - 01:13 | 4571214 Flakmeister
Flakmeister's picture

Beg pardon??

Thu, 03/20/2014 - 10:13 | 4572097 plane jain
plane jain's picture

Those percentaged appear very skewed to me.  Likely that the countries with lower percentages have a lot fewer wealthy people.

My mom is scraping by on SS and a tiny pension at $14,000 a year.  I know she spends more than 10% of her income on food and her fridge and pantry are pretty bare.

40% are making $30k or less IIRC.  At $30k a year 10% for food would be about $60 dollars a week.  Can be done with frugal shopping and cooking, but not too many cook anymore. The 7% in the chart seems damn unlikely.

Thu, 03/20/2014 - 12:40 | 4573021 Blue Horshoe Lo...
Blue Horshoe Loves Annacott Steel's picture

"The Economist" recently renamed their magazine "Pseudo-Scientific Bullshit" after taking a poll of readers.

Wed, 03/19/2014 - 23:38 | 4570948 Azwethinkweiz
Azwethinkweiz's picture

No wonder all the Koreans are flocking in droves to adopt pets (dogs) at the local animal shelter. NOW IT MAKES SENSE!!!!

Wed, 03/19/2014 - 23:49 | 4570988 Spungo
Spungo's picture

This don't affect me because EBT yo. You can sell $20 worth of cocaine for a $100 EBT card.

Thu, 03/20/2014 - 00:08 | 4571047 Azwethinkweiz
Azwethinkweiz's picture

As easy as it would seem to be to get an EBT card, my nephew got denied because my brother has a stock account set up in his name. Could ZH please post aguide to "EASY EBT" ---- how to get it, the loops, the ins, the etc. Now that's an article we'd all be interested in reading and using...and overrun the system with requests in the process.

Wed, 03/19/2014 - 23:59 | 4571013 QQQBall
QQQBall's picture

The gov't will substitute hummus for beef in the official calcs. 

 

MCD revs will beat next quarter as people hit the Value Menu for some protein. 

Thu, 03/20/2014 - 00:06 | 4571036 GumbyMe
GumbyMe's picture

Vast majority of people in the US could use a severe food shortage and/or price hikes, since they have plenty of blubber to keep them alive for years to come.

Thu, 03/20/2014 - 07:23 | 4571609 JMT
JMT's picture

I am taking this medication for ADHD and it really reduced appetite and gives you alot of energy. The main stuff is Amphetamine Salts which used to be in diet aids.  However diets don't work because they slow your metabolism...  These tablets washed down with some five hour energy or a can or two of Monster no carb energy drink is better than coffee to wake up

Thu, 03/20/2014 - 00:08 | 4571040 Al Huxley
Al Huxley's picture

I'm so fucking glad food and gas aren't included in the inflation calculations - think how fucking bad off we'd be if they were.

Thu, 03/20/2014 - 00:17 | 4571079 pops
pops's picture

But those yummy iPads are about the same.  Tough and chewy but tasty.

Thu, 03/20/2014 - 00:22 | 4571106 shitco.in
shitco.in's picture

Whole Foods beef was $13.99/lb tonight (skirt steak)

Thu, 03/20/2014 - 00:31 | 4571133 Ward no. 6
Ward no. 6's picture

i'm glad i like tofu

doesn't cost much

Thu, 03/20/2014 - 08:16 | 4571679 Waterfallsparkles
Waterfallsparkles's picture

Only problem is that Tofu is made with all of those GMO Soy Beans.

Fri, 03/21/2014 - 00:15 | 4575683 bankerbackbacon
bankerbackbacon's picture

...and processed with hexane, stick with organic poultry etc. Get to know farmers.

 

Soft Kill, a happy satanist way of offing those who are ignorant. You know the Ben Franklin (Mason) quote, anyway..

 

"Hexane is a byproduct of gasoline refining. It is a neurotoxin and a hazardous air pollutant."

".Many soybean processors use hexane as a cheap solvent to extract oil from soybeans in order to make soy oil and protein ingredients. Whole soybeans are literally bathed in hexane to separate the soybeans’ oil from protein."

 

http://www.buycott.com/campaign/376/avoid-hexane-processed-soy-products

http://cornucopia.org/hexane-guides/hexane_guide_meat_alternatives.html

 

Careful what you feed your kids. Morningstar farms(!?), that's not covert.

 

Thu, 03/20/2014 - 02:24 | 4571327 abunusaybah
abunusaybah's picture

...turn that graph upside down and you have the graph for human meat

Thu, 03/20/2014 - 02:52 | 4571368 adr
adr's picture

If we run low on cow, we got a lot of fat money changers we can snack on for a little while.

My life will be complete seeing Bernanke roasting on a spit. Goes for all the futures speculators as well. 

The game is almost over. The choice has to be made soon. Either kill Wall Street or starve.

Thu, 03/20/2014 - 04:17 | 4571449 OldPhart
OldPhart's picture

Have at it, and have my share...not a fan of pork.

I eat my white meat raw...and living.

Thu, 03/20/2014 - 03:35 | 4571418 10mm
10mm's picture

No talk of drought in the mix.

Thu, 03/20/2014 - 06:24 | 4571547 TheSkipper1967
TheSkipper1967's picture

Cant tell you the last time I bought beef.  I do have my freezer stocked with Deer meat.  This was only my second season hunting.  Was lucky to have a friend show me how to gut and process a deer.  Takes about 4 to 5 hours to completely grind and cut into roasts.  Going to get into deer jerky next.  This last season I got 3 deer processed and in my fridge without even shooting one.  Around these woods there are many that just want to go out and shoot but not mess with the mess.  I will take them all.  Nothing like eating deer chili and saying fuck beef prices with every bite.  I put a little FU Fed in every pot. 

Thu, 03/20/2014 - 06:42 | 4571563 kareninca
kareninca's picture

Here in Silicon Valley produce is still very cheap.  But  -  far more of it is from Mexico than in the past.  Which means NO oversight re the weird plastic coatings sprayed on the produce to keep it pretty looking.  There's a little oversight here over U.S. produce, but Mexican produce, forget it; half that cucumber is plastic these days.

Haha, you thought it was wax.  You old-timer, you:  http://realitybloger.wordpress.com/2012/01/08/that-isn-wax-on-your-apple...

Thu, 03/20/2014 - 07:01 | 4571583 22winmag
22winmag's picture

It'st true. Certain cuts suddenly selling out quick.

Thu, 03/20/2014 - 07:20 | 4571607 Youri Carma
Youri Carma's picture

Tomorrow’s hamburger may cost as much as today’s steak - Beef prices expected to rise through 2016 http://www.marketwatch.com/story/tomorrows-hamburger-may-cost-as-much-as-todays-steak-2014-02-20

Milk, cheese prices may climb 10% - Behind the rising cost of dairy products http://www.marketwatch.com/story/milk-cheese-prices-may-climb-10-2014-03-18

Milk Costs Most Ever on Surging Demand for U.S. Dairy Exports http://www.bloomberg.com/news/print/2014-03-17/milk-costs-most-ever-on-surging-demand-for-u-s-dairy-exports.html

Food prices jumped in February http://www.marketwatch.com/story/consumer-prices-edge-up-in-february-as-food-prices-jump-2014-03-18

10 foods eating into your budget http://www.marketwatch.com/story/10-foods-youll-pay-more-for-this-year-2014-02-25

Thu, 03/20/2014 - 07:50 | 4571647 AdvancingTime
AdvancingTime's picture

By a continuing process of inflation, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens. said John Maynard Keynes. As the central banks print like crazy to control interest rates on bonds they devalue the currency. Inflation hits with a delayed reaction and now is about to raise its ugly head big time. For more on this subject see the article below.

http://brucewilds.blogspot.com/2014/02/when-will-inflation-strike_1.html

Thu, 03/20/2014 - 07:58 | 4571657 LawsofPhysics
LawsofPhysics's picture

Let them eat i-pads!!!

/s

 

Thu, 03/20/2014 - 08:11 | 4571671 Waterfallsparkles
Waterfallsparkles's picture

I almost never buy Beef anymore because of the price increases.  Plus, Chicken and Pork are getting more expensive too.  But, I think this is good for most people as they are eating less Animal protien which will help to improve their health and their nutrition.

This is not good for the Government as more people will live longer and the Government will have to pay Social Security longer.

The Medical Establishment will also not like people eating healthier because it will cut down on peoples need for Health care. 

So, maybe there is a rainbow in the rising prices of meats.

Thu, 03/20/2014 - 09:00 | 4571809 TrulyStupid
TrulyStupid's picture

Pass the tofu please.

Thu, 03/20/2014 - 20:19 | 4575039 MeelionDollerBogus
MeelionDollerBogus's picture

I get sick without animal protein. I can still find decent chicken for $2.50/pound and that works for me.

Thu, 03/20/2014 - 08:19 | 4571688 MarcusAurelius
MarcusAurelius's picture

Well this is where the central bankers around the world find out that you really can't screw with something without some sort of consequence. Now that the Chinese liquidity is drying up the hot money will look for other areas to be parked. In other words another bubble needs blowing. (Sounds whorishly appropriate doesn't it?).

This sort of assinine behavoir will continue as long as the TBTF banks and the whores running them continue to operate. We will continue to pay for their crimes and their greed. 

Thu, 03/20/2014 - 09:23 | 4571887 ceedigzz
ceedigzz's picture

Regardless of class, Most Americans are more cost concious over their cup of Joe than the food they eat. 

As for the Middle Class being priced out of their Caramel Lattes from their favorite already overpriced coffee chains???  

Im sure that will grab more hyperbolic media attention sometime later this year.  

Tea anyone???

 

Thu, 03/20/2014 - 09:59 | 4572033 Bryan
Bryan's picture

LA LA LA!!! I'm not listening!  There is no inflation!  LA LA LA LA.....!!

Thu, 03/20/2014 - 15:44 | 4574030 MeelionDollerBogus
MeelionDollerBogus's picture

hhahaaha

so funny, someone here had been writing that "deflation is reigning"!

Oh wait, food prices are jumping through the roof so we'll all fucking starve.

Hm.

Is it still funny? No?

http://youtu.be/jYyBZE0kBtE

Thu, 03/20/2014 - 20:41 | 4575118 TheRedScourge
TheRedScourge's picture

Welcome to the same prices we pay in Canada.

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