Cost Of "Breakfast In America" Soars To Highest In Over 2 Years

Tyler Durden's picture

Another day, another indication that 'real' inflation - the kind that reduces standards of living and leeches away purchasing power for 'real' people - is anything but under control... and anything but stable. With the Oz-ians in the Eccles Building pulling levers to run the world based on their "inflation" measures, it seems that if the price of 'things that matter' soars but the Fed doesn't see them, there is no need to tighten. Last week we discussed the surge in the price of beef, pork, eggs, and shrimp, but this week, as Bloomberg notes, the price of breakfast is soaring. Between droughts affecting coffee prices and insects spreading disease in Florida, the "breakfast beverage" index is at its highest in over 2 years.



Source: Bloomberg

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Doubleguns's picture

Yep and the ham & eggs is soaring too. 

Doubleguns's picture

Yea....well....ummm.....I don' that, but I am keeping it on the list......of survival food. 

slotmouth's picture

I started watering down my Coffee with some whiskey and my OJ with some Vodka.  Alcohol prices are soaring too, but I don't care as much this way.

Doubleguns's picture

Slotmouth, seems that solution would work well for many of the inflated products. hic*

MonsterBox's picture

and the cattle food corn being made into alcohol for use in cars.

KickIce's picture

 I agree that it's a misuse of resources but on the flip side no one's kid has to die to when processing ethanol.

max2205's picture

Coffee up 100% in a month might have something to do with it

TruthInSunshine's picture

Just substitute -

Play Doh Breakfast Time Playset

- brightly colored eggs, ham, toast & OJ for the real thing. Problem averted until price of Play Doh rises similarly. Remember to take fiber supplement in interim." -- From BLS-BernankYelleNomics Hedonic Substitution & Inflation Adjustment Model.

Pinktip's picture

MonsterBox......You've just unknowling revealed a real problem.........

Cow are not designed to eat corn ! Especially GMO, NPK fertilized.

Cows are bio-digesters designed to eat grass/hay only.

Corn is digested by HCL acid (chicken, dogs, humans etc...)

Ying-Yang's picture

Fed Chair Janet Yellen, after declaring the U.S. Federal Reserve is abandoning Quantitative Easing – code words for money printing – is now demanding the Bank of Japan (BOJ) also curtail its Quantitative Easing.

Interesting read...

"Yellen, told the BOJ to end QE because its unprecedented volume purchases of “government bonds and risky assets will negatively impact global markets.” This is a dramatic departure from former Fed Chair Bernanke’s support for QE for all."

nuclearsquid's picture

The price of one serving of scapple may still be cheap, but what goes into that serving now?  Roadkill?


Kirk2NCC1701's picture

And in their quietest moments, even super tramps are having breakfast in america.

thunderchief's picture

Americans need to do more home AG, micro farming. If people don't see the industrial food complex as what it is, a pimp pushing drugs, making Americans obese zombies, then they are finished.

thunderchief's picture

Chris Martison's blog did a nice piece on micro farming. A guy and his wife in quebec. Everyone should do this on some scale.

lordylord's picture

"Americans need to do more home AG, micro farming."


You're asking the sheeple to do work and take care of their own families.  Sheeple don't like work and responsibility.  They rather have government issued food subsitute pills.

Thorny Xi's picture

Food substiutute pills.  I've been waiting all my life for these.  And a flying car.

lordylord's picture

I would also like to point out that government's plan is to heard us all into cities.  These densely populated cities full of poor people will be completley dependent on government for their food.  It's hard to grow your own food in a city environment and governement doesn't want people to be food independent.  

lordylord's picture

My comment reminds me of what that asshole FDR did.  FDR told farmers that they couldn't grow crops to feed their own cattle because it would decrease demand from other farmers who wanted to sell their crops and therefor lower prices (FDR was a piece of shit but somehow idolized in school textbooks).  How long before government tells you that you can't grow food for personal use?

msmith9962's picture

Get your free online permaculture training here.


I am.

Grinder74's picture

What about the bacon (pork bellies)??  Can't offend the mooslums on Bloomberg or something?

intric8's picture

Breakfast? I skip breakfast. Cant afford it. Coffee will do, thank you very much. 

101 years and counting's picture

with the amount of food yellen consumes, i'm 100% sure she's paying attention.  she (her gut) may be the best thing to happen to capitalism in years.  expect more tightening....i mean tapering, and for it to possibly even pick up pace ($15-20B/month).....

chinoslims's picture

Has the Fed hit its inflation target yet?  How come the Fed keeps changing the criteria for inflation?

  Answer: with a $17 trillion debt, servicing the debt would be impossible without interest rate increases.  DEFAULT BITCHEZ

robilla's picture

Uhhh... that doesn't really make sense.

If they increase rates, then the cost of future issuance (needed to cover the cost of existing issuance and increased gov't debt) increases as well.

We're screwed no matter what.

That is, unless, we stop borrowing now, slash expenses and roll out all existing debt to long-term rates... then just stop.

intric8's picture

Yellens personal inflation target is 15 bucks for a carton of OJ, ten bucks for a gallon of milk and a buck an egg. At those prices she will feel especially special eating as much high quality food she wants, in the fed reserve luxury facility, for free

Son of Loki's picture

Unpossible!? The CPI has been zero to 1.6% for the past 8 years.


Lendo's picture

I like how the Fed acts like rising prices are good for consumers and the economy.  They are forcing millions of middle-class people to go on food stamps and other government assistance.

What a crock of shit.

Flakmeister's picture

Is the Fed now responsible for swine related epidemics and drought related factors? 

Dr. Engali's picture

No but they are responsible for the hot money that flow into these commodities and make the problem worse. If the speculative money knows of issues seasonal or otherwise they will front run real buyers.

fonzannoon's picture

breakfast has got nothing on lunch though. 

Flakmeister's picture

It works both ways....

I ain't buying your explanation...

Dr. Engali's picture

So what you're saying is you're a hot money denier. Well I have the consensus of the financial community on my side. ;)

Squid Viscous's picture

wait til the price of gravlax starts to explode, then you will see some serious QE tapering

Flakmeister's picture

What makes you think that it already hasn't?

Flakmeister's picture

No, but the effect is not what many here believe it to be....

Quus Ant's picture

I have an open mind, Flak.  For better or worse.  Elucidate.

Flakmeister's picture

Speculators can cause the underlying trend to overshoot or undershoot it's "fair value" but the imbalance does not last long...

Or, looking at it another way the market can be "rigged",  recall Goldman and the aluminum market where the inflationary effect was negligible but by skimming a tiny amount on a huge volume they made big bucks...


Now, off the top of your head, are pork bellies and coffee in backwardation or contango?

Edit: got to smile, my 5000 share position in HGT is flying today....

Quus Ant's picture

well, if I'm going off the top of me head then I don't really give a shit. 

So they're skimming small sums off the top and getting away with it.  In my experience with humans when given a green light to steal they never settle for pennies.

KickIce's picture

I really don't think the commodity price itself is that big of an issue when one bushel of wheat makes 42 loaves of bread.  At eight dollars which is considered high that's only .20 cents for a $3 loaf of bread.  Even if it wentup to $20/bushel that's still less than .25 cents of actual wheat.  The typical margin of a farmer is very low.

Dr. Engali's picture

I and my partners deal with a lot of farmers and they are all having tremendous years (why do you think farmland is so high?). Their success has led to record years for us. Your explanation doesn't hold water. Try again.

KickIce's picture

Yes, the large farmers are very profitable based on volume, the smaller operator not so much.

As far as farmland goes it's just as distorted as any other market.  I've seen land go for $10K/acre in Iowa.  Current prices for corn are about $5/ bushel and even if you get 200 bushels of corn an acre it still takes 10 years to pay off that land.  And that assumes the coop gives you fertilizer for free, Monsato drops of the seeds for free and the field plants / harvests itself with free equipment from John Deere.

KickIce's picture

Edit:  should be $10/bushel = .25 per loaf.

alangreedspank's picture

Speculators are not a problem, unless they are given a really low prime rate to do so! We all know this schemes are not funded with money borrowed on 30 years!