Deep Fried Black Swan Goes Global As Drought Spreads From US To Asia, And Now To Southern Europe

Tyler Durden's picture

The US drought, which as previously noted, is the worst in decades, has already caused corn prices to hit a record, and soy to soar. And as we first reported last week, and subsequently Bloomberg also caught, Asia could well be next to suffer soaring food prices next as "the monsoon season, which is critical for that country’s agricultural production, is 22% below normal conditions for the year." In fact, if there is one thing preventing the PBOC from engaging in full blown easing, it is precisely the threat that just as it floods the market with excess CNY, that the supply of food will collapse causing widespread riots and chaos a la Arab Spring 2011. And now, just to make sure that the threat of full out global food crisis is complete, and the deep fried black swan has truly gone global, we find that a heat wave in Southern Europe is causing the corn crops to wither in a region that is responsible for 16% of global exports.


Bloomberg has more.

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Mr Lennon Hendrix's picture

This will raise prices so WS will see it as bullish.

ZerOhead's picture

The corn crop was worth $140B last year. If production falls by 50% then Jamie and Lloyd will need to double the price to avoid a drop in US corn GDP.

Doing "God's Work" isn't always easy... but it sure is profitable.

Lohn Jocke's picture

The physical market doesn't look at it that way. End users would rather seek substitutes (feed wheat, S. American corn etc.) rather than pay this premium. The drop in demand that we're already seeing in the river market and domestic grind market is telling us that demand is being rationed. Unless clueless investors continue buying into a commodity they know nothing about, which they would never do because people are wholly rational beings who would weigh the risks against an easy buck.

ZerOhead's picture

Check out the maps of global grain production and consumption below. The bulk of production is in the Northern hemisphere where the majority of agricultural land is and the prevailing atmospheric conditions have affected the crops the most. I sincerely doubt South America and Australia are going to make up for this shortfall.

AldousHuxley's picture

Too many black swans.


people are starting to believe white swans don't exist anymore.


fuck, when is the last time you've even seen a swan in real life?

jonjon831983's picture

A few days ago actually, beautiful creatures... but they can be mean n nasty.


Never seen a black swan though... there's no way in hell they exist.  To think otherwise... HERETIC!

Dugald's picture

Plenty of black swans in Western Australia...also the state emblem

Which really means Australia can't have a black swan event....will have to be Pink Swan Event?

Terminus C's picture

Took a picture of some yesterday in Rotorua NZ.

CPL's picture

Common enough in Canada.

Bicycle Repairman's picture

I hope all the farmers are hedged with agricultural derivatives.

ZerOhead's picture

Actually many are 'hedged' having already sold their expected corn/wheat/soy crops months ago to lock in what now are very low prices. We used to hedge about 50% of our production if the prices looked good in the spring.

Hedged farmers will be wiped out this year.


The Monkey's picture

Someone got their ass handed to them today.

BurningFuld's picture

Well I can tell you where all the rain went.......We had a RECORD for June this year as in the most rain we have ever had for ANY month in the history of records. That would be Southern British Columbia.

Doubleguns's picture

Filled with RADs from Japan?

CPL's picture

Naw.  Same old stuff going on for the last year and a half.

Not Too Important's picture

According to the info at, the drought is caused by the radiation creating an inner-atmosphere radiation belt, stretching across the Northern Hemisphere. The question, I suppose, is how much radiation has been, and is continuing to be, emitted from there?


“A recent study was prepared for Greenpeace Germany by international nuclear safety expert Dr. Helmut Hirsch. Dr. Hirsch’s assessment, based on data published by the French government’s radiation protection agency (IRSN) and the Austrian government’s Central Institute for Meteorology and Geodynamics (ZAMG) found that the total amount of unstable radionuclides Iodine-131 and Caesium-137 released between March 11 and March 23 has been so high that the Fukushima crisis already equates to three INES 7 incidents.

Release of radiation from the stricken reactors has reached 10,000 teraBequerels (10,000 trillion Bequerels) per hour, measured for radioactive Iodine-131.”

“The uranium bomb which the United States dropped on Hiroshima at the end of World War II released 89 tera becquerels. It killed 140,000 people – many instantly, others within weeks of the blast as they succumbed to severe radiation burns.”

So, a rough estimate is that Fukushima is spewing the equivalent of 112 Hiroshima-type nuclear bombs worth of radiation every hour, of every day.

That’s 981,120 atomic bombs a year going off worth of radiation into our biosphere."

Now, even if this study is off by 75% on the high side, that still leaves 245,280 nuclear bombs worth of radiation being emitted into the atmosphere yearly. Following the jetstream maps which is spreading this radiation, and it dovetails nicely with the world's primary growing regions that are experiencing severe drought.

And since they are running out of people to do any kind of work at Fukushima due to the high exposure levels, there's no stopping these emissions. In fact, the emissions are increasing at a steady rate, while the support structures are continually weakend and collapsing due to the continuous earthquakes and liberal application of salt-water cooling (which all flows back into the Pacific Ocean).

In a few years there will be Hell on earth. A Hell unlike anything anyone could ever possibly imagine. Enjoy what's left.

Bicycle Repairman's picture

"Hedged farmers will be wiped out this year."

Doesn't sound like much of a hedge.

jonjon831983's picture

Are the derivatives on paper?  Probably edible then.

Praetorian Guard's picture

Pluto is even heating up, as are all the planets in the Solar system. This is a multi faceted issue. Its mainly due to the sun core heating up as we pass through a hydrogen ion/energy rich "belt". The sun is heating up, and earth is being affected through magnetic storms as well as magnetic induction. This is not going to end well. Some big shit here, and coming. I wonder when governments will share this tid bit, and let the masses know, only a few "life boats" exist... interesting times...

Cast Iron Skillet's picture

issszzaat right? ... I think it's more like the aliens trying to blow up the Sun to kill us all because they hate our freedom.

Praetorian Guard's picture

Illegal aliens? :)   Just look at Greenland, within only a few days 40% thaw, with a total of 97% thaw/melt, and NOAA, et al have no clue as to why. Desalination of the oceans would be a massive death knell, and beginning of an ice age...

Bob's picture

Thanks for the tip!

The rapid melting over just four days was captured by three satellites. It has stunned and alarmed scientists, and deepened fears about the pace and future consequences of climate change.

In a statement posted on Nasa's website on Tuesday, scientists admitted the satellite data was so striking they thought at first there had to be a mistake.

This is hot stuff!


TBT or not TBT's picture

In any case, this will re-ignite the "arab spring" again.    

Prices of imported grain and fuel in those places sparked the initial uprising.   Now Egypt is down to nothing in foreign currency reserves, has a very bad and persistent balance of trade deficit, and has no credit line.   They import 50% of the calories egyptians live on, and as such an increase in grain prices will hurt even worse than their projected situation, whcih was already headed to apocalyptic famine territory before the grain price surge.

Unbezahlbar's picture

Is this why the Aliens (plutonians, Uranusites, etc) are buying up all the empty houses?...because their planet is drying/heating up?


Landrew's picture

Be careful someone might believe you.

FieldingMellish's picture

Just when TPTB think they can control everything, Mother Nature reminds them of who really is in charge. Unfortunately it will be the poor that suffer rather than the banking class.

TPTB_r_TBTF's picture

You didnT notice the chem trails?

Xibalba's picture

So this has nothing to do with cloud seeding...right??  And HAARP is just a school project?  



Dajjal is trying to kill you.  

Paul Atreides's picture

This drought coupled with a major financial crisis in the fall and likely a major war around the same time is going to cause everyone from the middle class down serious hardships, hunger and poverty this coming winter.

Some very good reasons to finalize your preps before the fall.

mc_LDN's picture

The spirit of this Earth will sweep through continents, starve hundreds upon hundreds of millions, destroy finance and money, nations states and standing armies.

The Purifiers have arrived people. Get ready because we've had our shot and our Western societies have failed miserably at the little experiment we were afforded. Time to get our of the way and make way for the new that is coming very soon. And no it wont be illuminati, elites or any other political entity. These are all nothing and will be swept aside like little children.

TPTB_r_TBTF's picture

well ... the Spirit of this Earth (Gaia?) had better hurry, otherwise TPTB will beat her to it.

Correction: Billions will starve.

Karl von Bahnhof's picture

Whoof, I read porn price was growing makes me panic

Lost Wages's picture

If you are still paying for porn, then maybe you deserve to spend more.

Lohn Jocke's picture

You can't eat porn... although I'd rather not think about it.

pingpongthesecond's picture

Too bad GS wanted to sell corn and buy wheat...

hedgeless_horseman's picture


Plenty of rain in South Texas this year, thank God! 

I can bulldog him to the ground, but then I need someone big to sit on our bullcalf while I castrate him.  Any takers? 

How do average folks making an average wage ($26,000) afford an average grocery bill?

Get a family cow, some chickens, and a garden.  It is easier than you imagine.


Lohn Jocke's picture

BTFD on that family cow, herds are being liquidated due to high feed costs. Beef will dip for a bit while frozen storage inventory rises, but expect that heffer to rally hard because you can't grow a herd back in a year. We're probably looking at at least 2-3 years of high beef prices.

Taint Boil's picture




I just heard the same thing here. Said everyone is dumping their cattle ........ interesting. Also said the corn is really bad, even in the better fields. Black Swan?

jonjon831983's picture

Is there a chart for pink slime?

surf0766's picture

Only idiots burn their food for fuel.

UP Forester's picture

That's why on the 8th day, God created the iPad.

Nom, nom, nom.

VonSalza's picture

nom nom nom Deep Fried Black Swan