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Guest Post: A Punch to the Mouth - Food Price Volatility Hits the World

Tyler Durden's picture





 

Submitted by ChrisMartenson.com contributing editor Gregor Macdonald

A Punch to the Mouth: Food Price Volatility Hits the World

Perfect Storms

2011 was an abysmal year for the global insurance industry, which had to cover yet another enormous increase in damages from natural disasters. Unknown to most casual observers is the fact that during the past few decades the frequency of weather-related disasters (floods, fires, storms) has been growing at a much faster pace than geological disasters (such as earthquakes). This spread between the two types of insurable losses has moved so strongly that it prompted Munich Re to note in a late 2010 letter that weather-related disasters due to wind have doubled and flooding events have tripled in frequency since 1980. The world now has to contend with a much higher degree of risk from weather and climate volatility, and this has broad-reaching implications.

And critically, it has a particular impact on food.

Many factors seen over the past decade have produced higher food prices: population growth, urbanization, the decline of arable land per person, and the upgrading of diets for example. But more damaging than food inflation has been the pushing of global food prices out of their long, quiet envelope of stability. From the recently released UN Report on the World Food Situation:

The FAO Index (Food and Agriculture Organization of the U.N) shows that, while prices are once again down from a peak, a troublesome volatility started to affect food prices this decade. These are the very prices that caused social instability in countries like Mexico in 2007-2008 (pressure on corn prices, owing in part to US corn ethanol mandates) and more recently in northern Africa (Arab Spring).

Commodity observers will note the rough correspondence with oil prices, and of course that’s no mistake. Inputs to food production are heavily composed of fossil fuels. In the same way that both high (and highly volatile) oil prices play havoc with economies, food prices and marginal speculation in food have done the same.

2011 also saw the highest average oil prices since 2008, at $94.81 per barrel. That is not far below the average high of 2008, at $99.67. In between was a crash in oil prices -- and most commodities -- which unfolded at a rate almost as rapid as the original run-ups from 2006-2008. What happens next?

The USDA has just released its Food CPI readings for 2011, along with their forecast for 2012.

With 11 months of data recorded, the outlook for the 2011 Consumer Price Index (CPI) and food price inflation has become clear. The CPI for all food is projected to increase 3.25 to 3.75 percent. Food-at-home (grocery store) prices are forecast to rise 4.25 to 4.75 percent, while food-away-from-home (restaurant) prices are forecast to increase 2 to 2.5 percent. Although food price inflation was relatively weak for most of 2009 and 2010, cost pressures on wholesale and retail food prices due to higher food commodity and energy prices, along with strengthening global food demand, have pushed inflation projections upward for 2011.

For 2012, food price inflation is expected to abate from 2011 levels but is projected to be slightly above the historical average for the past two decades. The all-food CPI is projected to increase 2.5 to 3.5 percent over 2011 levels, with food-at-home prices increasing 3 to 4 percent...

With non-existent wage growth and a dearth of investment opportunities, these price advances in food costs have much more impact than it appears. What asset classes are keeping pace with the year-over-year increases in food? Certainly not stocks, as the S&P 500 has gone nowhere in a decade. Moreover, a 3.5% increase in Food CPI this year, with more to come next year, falls on top of a deeply under-utilized US economy in which tens of millions derive income from government transfer payments, most of which are not sufficiently ratcheting higher from “inflation-adjustments." Food Stamp recipients, for example, are not seeing food inflation adjustments in their benefit checks that would compensate for the price increases. Not even close.

As you may have heard, milk was the top commodity performer in 2011, up 40% on the year in the futures market. A question: do you think milk is a central staple in American family diets? There's more. On a year-over-year basis through November, according to USDA, beef prices are up 9.8%, egg prices are up 10.25%, and potato prices are up 12%. (This partly explains why junk-type grocery foods make up an ever-larger portion of food-stamp purchasers' shopping carts. Sadly, people are buying caloric content, not nutrition).

Now, compare these price increases to the average individual Food Stamp benefit, which is basically flat year-over-year, moving from $133.79 in 2010 to $133.84 in 2011. And to the extent that households use Food Stamp benefits to plug overall cash flow problems, the very central and related pressure from higher gasoline prices also deflates the impact of the Food Stamp benefit.

Food Stamp Nation

The march higher in Food Stamp participation following the 2008 crisis has been relentless. The trend has paid no attention whatsoever to assertions of economic recovery or jobs growth in the US.

Yes, in the aggregate there has been moderate growth in private sector payrolls since the lows. There has also been a very big turnaround in exports, as this part of the economy has seen a veritable resurrection, growing to 15% of GDP. However, the upsurge in national Food Stamp participation (SNAP) has been stronger than them all. In December of 2007, just after the declared start of the “recession,” national participation in SNAP (Supplemental Nutritional Assistance Program) stood at 27.385 million. As of the latest data, this has ballooned to 46.268 million.

Because the national figures are so enormous and harder to comprehend, for several years I have kept track of Food Stamp (SNAP) users in Los Angeles County -- alongside oil prices. Southern California illustrates well the dilemma for most of the nation: Through the force of US demand, we have lost the control we once enjoyed over oil prices, while at the same time we remain locked in to automobile-based transport. Previous recessions in the US would have knocked gasoline prices down for longer. Not so anymore. Earlier this year, it became clear to me that before year end, the number of L.A. County participants on Food Stamps would eventually cross the one million mark. That grim marker has now been achieved:

The above chart of L.A. County SNAP users echoes the FAO chart from the United Nations. Upward-moving volatility in energy is concurrent with wild swings in food prices and waves of people in need of public assistance. Wages in the US have remained flat while millions of workers remain either unemployed or underemployed. Meanwhile, urbanization in the developing world has continued apace, forcing food prices and energy prices up at the margin. The results are not complicated. When demand begins to hit a resource whose supply cannot be easily increased, then price moves to ration demand and price becomes more volatile.

That process, so obvious to many, can unfortunately digress into a series of time-wasting arguments about speculators and whether the world is running out of...(insert your preferred natural resource here). On the contrary, natural resources rarely, if ever, run out in the marketplace. The US is not running out of oil, or corn, and the world is not running out of coal, or copper. What we have seen however in the past decade is that a number of structural changes to human development, primarily industrialization in the Non-OECD, have combined to put an unexpectedly large burden of demand on world resources -- at a rapid rate. Meanwhile, many natural resources, such as copper and oil in particular, had already reached a more difficult place in the arc of their own extraction history when this started to unfold. 

The Decline of Arable Land

The result is that energy resources, and thus the ease of using energy resources in food production, began to converge with a long decline in the availability of arable land.

It is not for nothing that farming acreage in the US Midwest is up over several hundred percent since the lows twenty years ago. (As a personal aside, I remember those lows very well; I lived on a struggling soybean farm in Iowa during graduate school in the late 1980s). The world is in the midst of a New Great Game. But this time, the hunt is not on only for energy resources, but for agricultural resources -- mostly cropland.

On my own blog, I recently did a short post on a study of urbanization in China’s Pearl River Delta and its aggregate effect on climate and precipitation. In short? Paving over the earth decreases rainfall. I also found these two photos from NASA, comparing satellite views of the Pearl River Delta over a 14-year period from 1979 to 2003.

The loss of arable farmland per capita in China has placed enormous pressure on the global food system and all of its inputs, especially fertilizer. The miracle of the food revolution, much trumpeted over the past 30 years as the latest achievement of technology and innovation, is not to be dismissed. But there are limits. We can only convert so much farmland to urbanscape while making up the difference with N, P, and K (Nitrogen, Phosphorus, and Potassium) before we lose resiliency -- and redundancy -- in the global food system. It did not used to be the case that a bad wheat crop in Australia or the Ukraine would hit global wheat prices so hard. Moreover, because food is a renewable resource, a level of overconfidence about our ability to respond to demand crept into policy-making and forecasting.

In Part II: Preparing for Higher Food Prices, using the most recent data, I show what’s happened to arable land around the world and talk about how we have created ever more tightly-coupled fragility in our systems of food production. I also chart the relative performance or return on various investments, compared to food, and show that despite the avoidance of the matter, stagflation has now entered the US economy. (How does one cope with flat wages and rising food prices?) Finally, I have just finished reading Julian Cribb’s The Coming Famine: The Global Food Crisis and What We Can Do to Avoid It, 2010, and found his discussion of virtual water very much on point, and relevant to our next set of challenges:

In theory, countries that lack water can import virtual water as food commodities with those with plenty. So too, countries that lack the energy to grow all their food can import surplus food from countries with highly productive oil based farming systems--provided they are rich enough to afford it. The fact, however, that a billion people starve while another billion wallow in surpluses of food so huge that they throw away half undermines this idea.

-- from The Coming Famine by Julian Cribb, page 122.

As I discuss in Part II, the United States is also becoming swept up in the globalization of food production, as it remains a titan of commodities exports, on an absolute basis. But the hunger for US food exports has implications for our own population, which struggles with falling (real) wages and depressed purchasing power. Will Americans be able to afford to pay what the world can afford to pay, for food?

Click here to access Part II of this report (free executive summary, enrollment required for full access). 

 


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Tue, 01/03/2012 - 18:54 | Link to Comment ACP
ACP's picture

You can't eat iPads?

Tue, 01/03/2012 - 18:59 | Link to Comment camaro68ss
camaro68ss's picture

Eat your peas bitchez!

Tue, 01/03/2012 - 19:35 | Link to Comment lakecity55
lakecity55's picture

I must report you counterrevolutionary miscreants to our Fearless Leader after his gourmet 10 course meal. It would behoove all of you to learn Swahili, the language of his Native Village.

Tue, 01/03/2012 - 20:10 | Link to Comment CrazyCooter
Tue, 01/03/2012 - 20:35 | Link to Comment Abitdodgie
Abitdodgie's picture

Swahili ,Jambo bwhana habari akko, means , hello mister how are you 

Tue, 01/03/2012 - 23:03 | Link to Comment UnderDeGun
UnderDeGun's picture

The Swahili speak Bantu.

Tue, 01/03/2012 - 23:13 | Link to Comment UnderDeGun
UnderDeGun's picture

Opps. They do speak Swahili, but they call it Kiswahili which is a Bantu dialect. I confused It with speaking Zulu, which doesnt exist, but is Bantu. My appologies.

Tue, 01/03/2012 - 23:32 | Link to Comment GMadScientist
GMadScientist's picture

The droid speaks Bocce.

 

Wed, 01/04/2012 - 08:09 | Link to Comment StychoKiller
StychoKiller's picture

Odd, the Italians play Bocce, with wooden balls... :>D

Fri, 01/13/2012 - 09:48 | Link to Comment Temporalist
Temporalist's picture

That's all they could afford after the banksters stole all the money for themselves.

Tue, 01/03/2012 - 23:27 | Link to Comment whatsinaname
whatsinaname's picture

Is the lack of snow going to create drought conditions in the midwest, plains ?

Is Vail a big fail this year ?

Wed, 01/04/2012 - 00:43 | Link to Comment UP Forester
UP Forester's picture

Winter isn't really here yet.  The fucked-up jetstream will dump it sooner or later, and it'll stay late again.

BTW, ice ages always start with increased rain and snowfall, and plants don't grow well in cold, wet conditions.

Wed, 01/04/2012 - 02:39 | Link to Comment Hephasteus
Hephasteus's picture

The problem is sand in your vagina. There's only a few plants that will process and use silica and make the soil workable for plants that can't handle sand in the vagina. I don't know if you've been keeping up with current events but between all the volcano's popping and fukishima the soil is fucked.

Tue, 01/03/2012 - 20:29 | Link to Comment bonderøven-farm ass
bonderøven-farm ass's picture

Grow yer own, bitchezzz........!

Wed, 01/04/2012 - 10:09 | Link to Comment DumFarmer
DumFarmer's picture

And don't forget the lead needed to keep it! It's the "new required nutrient" and by the ay, fuck NPK fertilizer. Cow shit works better than any of that industrial garbage. And may I sugggest if you live in the north, like I do, it's time to stock up on canning jars and relearn how to store all that beautiful bounty. Or just bring me your silver until I run out of extra. 

Tue, 01/03/2012 - 21:08 | Link to Comment URZIZMINE
URZIZMINE's picture

"I think everyone should eat what they grow."

M      Just kidding

Tue, 01/03/2012 - 21:19 | Link to Comment Silver Bug
Silver Bug's picture

Wow, check out this horribly failed attack by John Huntsman on Ron Paul. Another epic!

 

http://silverliberationarmy.blogspot.com/2012/01/attack-piece-on-ron-paul-is-blowing-up.html

Tue, 01/03/2012 - 22:53 | Link to Comment BlackholeDivestment
BlackholeDivestment's picture

U.N.Holy cow! ...if that isn't the Bat Signal in the ''we are outta beans'' bag Batman. http://www.youtube.com/watch?v=Dj4otoNF6xk&feature=related

http://www.youtube.com/watch?v=2kBHNrfT9aE&feature=related

Tue, 01/03/2012 - 19:03 | Link to Comment Let them eat iPads
Let them eat iPads's picture

Shh..don't tell the Fed.

Tue, 01/03/2012 - 18:54 | Link to Comment Ancona
Ancona's picture

Austerity induced anorexia chic......coming to a town near you.

These fuckers won't be satisfied until they have mutated every decent characteristic out of every single staple food on the planet. We are now one serious blight away from food disaster.

Thanks Monsanto!

<sarc>

Tue, 01/03/2012 - 19:22 | Link to Comment CharlieSDT
CharlieSDT's picture

Africans who live on less than one $ a day cannot afford skyrocketing food prices.  Bernanke's inflationary policies are pushing hundreds of millions towards poverty worldwide.

America, however could use some food shortages.  What a bunch of fatasses.

 

http://www.singledudetravel.com/2011/07/fat-people-the-aids-of-america/

Tue, 01/03/2012 - 19:43 | Link to Comment JW n FL
JW n FL's picture

 

 

did you miss Tylers post on the 3rd World Population Explosion? and how killing off all those extra bodies in the BRIC's would save the World a BUNCH! of oil.

http://www.zerohedge.com/news/presenting-nssm-200-implications-worldwide-population-growth-us-security-and-overseas-interests

enjoy!

Tue, 01/03/2012 - 23:28 | Link to Comment Osmium
Osmium's picture

Got flour?

Tue, 01/03/2012 - 23:34 | Link to Comment GMadScientist
GMadScientist's picture

No good.

We'll just eat each other. - Donner

Tue, 01/03/2012 - 19:28 | Link to Comment Tijuana Donkey Show
Tijuana Donkey Show's picture

That's why Americans are famine proof, they carry our stratigic calorie reserves arund every day in their SUV's. 

http://en.wikipedia.org/wiki/File:USObesityRate1960-2004.svg

Sat, 01/14/2012 - 13:31 | Link to Comment JW n FL
JW n FL's picture

 

 

see.. here's the plan..

the powers that be...

are taking away the money of the working class / middle..

for their own good..

to help them be skinny'er!

More Thankless God's Work! that is being done by Wall Street!

When will Wall Street get some credit for trying to save all of the the Middle Class from Obesity?

Thank God! Wall Street is doing God's Work!

The Job Creators!! do Love us!!!

Wed, 01/04/2012 - 10:00 | Link to Comment TruthHunter
TruthHunter's picture

Thanks Monsanto!

 

If a corporation is a criminal, when does one become a "habitual criminal" and be permanently locked up?

 

How is it that a collection of people, all with moderately functioning consciences, behave as a psychopath?

Tue, 01/03/2012 - 18:57 | Link to Comment LawsofPhysics
LawsofPhysics's picture

But I thought inflation was under control?  Better add a few more zeros to those accounts benny boy.

Tue, 01/03/2012 - 19:00 | Link to Comment onlooker
onlooker's picture

I sold Texas beef cows in the last 2 months. My auction sale prices were up 20% to 40% from last year. I am a rancher/farmer that gets the lowest price in the food chain.

Expect continued higher prices for beef.

Tue, 01/03/2012 - 19:06 | Link to Comment Let them eat iPads
Let them eat iPads's picture

This shouldn't have any effect on McDonalds burgers.

Tue, 01/03/2012 - 19:13 | Link to Comment kito
kito's picture

yes, thankfully the rat population is doing quite well, especially with the decline in municipal rodent control budgets. supply clearly outweighs demand for the mcd burger.......................

Tue, 01/03/2012 - 19:15 | Link to Comment Let them eat iPads
Let them eat iPads's picture

Those are harvested during McRib season...for a limited time only.

Tue, 01/03/2012 - 19:18 | Link to Comment ebworthen
ebworthen's picture

Don't forget Soylent Green.

Tue, 01/03/2012 - 20:14 | Link to Comment Teamtc321
Teamtc321's picture

No, it will go like this, I have cattle, got gold bitcheez?

Tue, 01/03/2012 - 21:06 | Link to Comment ACP
ACP's picture

By sheer coincidence, today is Tuesday, which is Soylent Green day.

Wed, 01/04/2012 - 00:18 | Link to Comment MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

Soylent green is sheeple

Wed, 01/04/2012 - 09:34 | Link to Comment francis_sawyer
francis_sawyer's picture

Soylent green shoots bitchez!

Tue, 01/03/2012 - 20:28 | Link to Comment oddjob
oddjob's picture

McRib...Rats?...think smaller and more legs.

Tue, 01/03/2012 - 21:15 | Link to Comment Jack Burton
Jack Burton's picture

"McRib is people!" McRib is people!"

Tue, 01/03/2012 - 23:30 | Link to Comment Hi Ho Silver
Hi Ho Silver's picture

Tasty tasty people.

Tue, 01/03/2012 - 20:22 | Link to Comment Whalley World
Whalley World's picture

mmmm, rat chow mein

Tue, 01/03/2012 - 19:42 | Link to Comment Socratic Dog
Socratic Dog's picture

I made the observation here a few days ago that an ounce of gold could buy about 14 man-years of corn calories.  A 50 pound sack (for my chickens) costs me about $14 retail (up from $10 less than a year ago, down from $15 a few months ago, but that's another story).

Food is operating in a different space to things like gold, housing, oil, and insurance.  Anything related to the banksters, in short.  My monthly rent check also buys that 14 (or more) man-years of corn.  It's bullshit.  A months rent for 15 years of food?  Something is broken, and it's pretty clear what it is.  It's the fucking system.  What might be a reasonable balance between food and a roof over your head?  Perhaps a month's food for a month's rent?  In corn, that's about 35 pounds.....$10.  So, monthly rent comes down to $10, or price of corn goes up to $2,000 a sack.  Maybe it should be 6 months food for a month's accomodation.  So corn goes to $300.

Rough numbers, but they paint a pretty clear, and a pretty desolate, picture.  When reality hits, we are fucked.  The reality might come courtesy of an oil shock (essentially free oil keeps corn essentially free), a financial collapse, or from a massive crop failure, something like what Monsanto monoculture virtually guarantees.  Whatever, it's going to come.

Tue, 01/03/2012 - 22:03 | Link to Comment xela2200
xela2200's picture

Is corn subsidized?

Tue, 01/03/2012 - 23:17 | Link to Comment UP Forester
UP Forester's picture

Yes, but you can distill the subsidy right out of it.

Tue, 01/03/2012 - 19:02 | Link to Comment Shadowsil
Shadowsil's picture

OT> www.msn.com

bottom right side polling for iowa voting.

GO RP GO!

Mittens is in the lead atm with 100k Votes. ya haha right.

Tue, 01/03/2012 - 19:16 | Link to Comment Sudden Debt
Sudden Debt's picture

Did anybody see the news about the death birds and fish again all over the planet?
Now they're linking it to the plasma stroms of the sun last week.

Tue, 01/03/2012 - 19:28 | Link to Comment Uber Vandal
Uber Vandal's picture

You mean it has nothing to do with fireworks being set off for New Years like the earlier MSM reports said?

Wed, 01/04/2012 - 08:50 | Link to Comment HungrySeagull
HungrySeagull's picture

That. *Waves dismissively.

A box of big fireworks was lighted deliberately in the woods where the migrating birds roost each year. These birds cannot fly at night. So whoever lit the fireworks killed 2000 birds, stuffed the NOAA weather radar and took advantage of a inversion that increased the percieved sound.

 

Those woods will vanish in the months to come to be turned into a Walmart that will choke that tiny town where birds drop from the sky.

Wed, 01/04/2012 - 10:31 | Link to Comment LFMayor
LFMayor's picture

That will teach those little FN rats with wings to shit on my car again.

Tue, 01/03/2012 - 22:24 | Link to Comment q99x2
q99x2's picture

Won't matter until political leaders north of the equater start getting tumors.

Tue, 01/03/2012 - 23:33 | Link to Comment Osmium
Osmium's picture

I saw a report trying to link the dead birds to the HAARP project in Alaska.

Tue, 01/03/2012 - 19:07 | Link to Comment Stu Pedassle
Stu Pedassle's picture

Is there an extra zero on the SNAP chart for LA County or does that say 1,025,000?  Really?  Over 1,000,000 people on SNAP in LA alone?

Probably not where you want to be when hyperinflation kicks in.

Tue, 01/03/2012 - 19:20 | Link to Comment Sudden Debt
Sudden Debt's picture

If they start to feed on their own, it would take about 30 weeks to get. Their numbers down to only 1700
That is if 10 people,where able to feed on 1 person for 1 week that is...
No silicone included...

Wed, 01/04/2012 - 08:14 | Link to Comment StychoKiller
StychoKiller's picture

¿Por Que?  Silicone is quite chewy and lasts a long time (or so I'm told) :>D

Wed, 01/04/2012 - 00:23 | Link to Comment MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

That number really got my attention too.  Wow a million folks in one county (albeit the most populous county or close to it).

Probably bullish. </sarc>

Tue, 01/03/2012 - 19:13 | Link to Comment prains
prains's picture

Unt za vorld goez boom

Tue, 01/03/2012 - 19:13 | Link to Comment Caviar Emptor
Caviar Emptor's picture

I believe my oil company and they say poppycock. 

Tue, 01/03/2012 - 19:15 | Link to Comment tallen
tallen's picture

Print more food?

Tue, 01/03/2012 - 21:11 | Link to Comment Matt
Matt's picture

And now you can, with the amazing 3D Printer with food printing capabilities! http://money.cnn.com/2011/01/24/technology/3D_food_printer/index.htm 

Wed, 01/04/2012 - 08:21 | Link to Comment StychoKiller
StychoKiller's picture

Guess I'll stick with "Tasty Wheat" :>D

Tue, 01/03/2012 - 19:15 | Link to Comment Sudden Debt
Sudden Debt's picture

WE NEED MORE PARKING LOTS!!!.! MORE I SAY!!!

Tue, 01/03/2012 - 19:17 | Link to Comment ebworthen
ebworthen's picture

A decline in arable land means that more and more production per acre must be achieved.

This is accomplished with mechanization, pesticides, fertilizers; all dependent upon oil.

Food price volatility, and high food prices, were the kindling for the revolts and revolutions of 2011.

Tue, 01/03/2012 - 21:12 | Link to Comment URZIZMINE
URZIZMINE's picture

I think we should all go to Namibia and chill out.

Tue, 01/03/2012 - 22:04 | Link to Comment greensnacks
greensnacks's picture

Could food be the next bubble? Farm land is being bid up strong by speculators. Perhaps more than oil, speculators will fuel the next land bubble and take food prices with it. Who was it that bought a bunch of almond orchards?

Tue, 01/03/2012 - 23:20 | Link to Comment UP Forester
UP Forester's picture

Mr. Peanut bought the almond orchards.  With his tophat and monocle, he's trying to be the John D. of the 21st Century.

Tue, 01/03/2012 - 23:40 | Link to Comment WonderDawg
WonderDawg's picture

That's fucking funny. Thanks, dude, needed a laugh.

Wed, 01/04/2012 - 08:59 | Link to Comment HungrySeagull
HungrySeagull's picture

Go down towards Virginia's tidewater, you will find the Peanut. Georgia as well.

 

There are a number of other things too.

 

To be honest I hate what they are doing to our Corn. Distilling the crap for ethanol. We can cook and eat it or we can still it and fuel our car.

Which?

Also Ethanol likes to keep hold of water which means Gas Stations selling % Ethanol fuel and holding too much water in storage will ruin the vehicles that fuel up. Particularly those with Rubber timing belt and valves that stick down into the cylinder tube.

 

We have lots of chicken and turkey, tornadoes kill a percentage but still... they get turned into Mcnuggets while we learn to bake the actual chicken and eat well.

 

We have been growing Tomatoes every year and avoiding the ever rising cost.

 

Apple orchids were replaced across Washington State a decade ago, They should be in prime now however because of water issues in irrigation we pay 1.40 a pound at the store.

 

When the fuel rises even more, expect that to double.

The Feedlots out west are full of it. Literally. The meat triangle probably has too much livestock to slaughter into beef. Hopefully the price of oil stays a little lower for a few more months until new pastures grow again.

 

Otherwise prepare for higher beef and milk.

 

I well remember the time when milk was so cheap it was not worth a penny producing it. I think we might want to get a cow or two ourselves and a bit of grass to feed it with.

Tue, 01/03/2012 - 22:05 | Link to Comment xela2200
xela2200's picture

Hydroponics is getting a boost due to increase in input.

Wed, 01/04/2012 - 02:31 | Link to Comment green888
green888's picture

heard about "terra preta", obviously you have not ? Farmers beginning to come to grips with carbon capture soils

Wed, 01/04/2012 - 09:10 | Link to Comment flattrader
flattrader's picture

Simple composting, worm farming etc...I think there will be a real market for small solutions in the future as suburbanites plow under their water sucking lawns for productive gardens.

Big Pharm will never go this route.

Tue, 01/03/2012 - 19:22 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

There is NO inflation........especially no food inflation. So says the US Government......backed up by Homeland Security. If you claim otherwise, you will be declared a terrorist and hauled away.

The good news is that they might........MIGHT, mind you..........feed you two or three squares a day while you rot away in Guantanamo. Then you really won't experience food inflation.

Tue, 01/03/2012 - 19:37 | Link to Comment Eeyores Enigma
Eeyores Enigma's picture

Come on Cog I would expect you to understand that prices can go up due to increase in money supply chasing products, (not happening) or prices can go up due to the product decreasing against a flat or even declining money supply (happening).

http://www.desdemonadespair.net/2011/02/drought-and-desertification-grow...

 

"30 million acres a year lost to drought and desertification"

 

Buy Farms Bitchez!

Tue, 01/03/2012 - 19:45 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

:>)

Actually my comment was directed towards those traitorous bastards who do not believe their government always acts in their best interest. They deserve to be dragged off by their "rights" and "left" to rot in the heat of Guantanamo.

/sarc off

Tue, 01/03/2012 - 21:22 | Link to Comment Jack Burton
Jack Burton's picture

Hey, they didn't pass the right for government to declare any American citizen they choose a terrorist supporter and haul them away for indefinite detention without legal representation for life at any one of a number of secret CIA torture prisons set up around the world in friendly nations.

All that is needed is the presidents signature declaring you a terror supporter, no evidence needed, and the military can kidnap you in broad daylight, torture a confession out of you and keep you in detention at the torture prisons for life, you have zero rights to any appeal, leagl recourse or even the right for your whereabouts to be made public to your family.

Now some would argue that "only the gulity have anything to fear". Because naturally the all knowing and loving government employees in charge of torture, inprisonment and kidnapping would never ever hold an innocent man. We ALL know that only terrorist supporters would ever be held for life in secret torture prisons. The president would never ever sign off on anyone who wasn't a terrorist would he?

We can sleep sound knowing the all powerful government is doing this for our own good, to help us be safe and free and secure in our rights as Americans.

Tue, 01/03/2012 - 23:23 | Link to Comment UP Forester
UP Forester's picture

Potato field.  The new Battlefield.

Them bastard farmers are ruining our freedom!  Off to the Casino-Gulag!

Wed, 01/04/2012 - 09:14 | Link to Comment flattrader
flattrader's picture

You don't know how close you are to the truth.

A recent FOIA request reveals that the FBI wants food activists now labeled as terrorists if their efforts/investigations produce economic harm.

http://www.cagle.com/2011/12/open-up-and-say-ahh/

Un-fucking believable.

Tue, 01/03/2012 - 19:18 | Link to Comment SheepDog-One
SheepDog-One's picture

Again...why cant further money printing, bailouts, QE fix all this? Its worked SO well to this point. 

Tue, 01/03/2012 - 19:25 | Link to Comment apberusdisvet
apberusdisvet's picture

Actually rat tastes a little like chicken; squirrels are good in a pinch too; just ask any hillbilly type; knew a few in my Kentucky/W. Va coal investment days.

Tue, 01/03/2012 - 19:32 | Link to Comment pursueliberty
pursueliberty's picture

Tree rats are a pain in the ass.  Rabbit is where it is at for small game eating.  Easy to clean, and the meat of 10 squirrels.

Tue, 01/03/2012 - 20:54 | Link to Comment Arrowhead
Arrowhead's picture

Agree bunnys are primo but tree rat parboiled and then pan seared are tender and good enough. Bumper crop of sky carp (geese) this year- all going to jerky. Smoked duck on rice with red cajun sauce can't be beat. Homebrew makes it all good.

Wed, 01/04/2012 - 02:13 | Link to Comment Canaduh
Canaduh's picture

Not much fat in rabbit meat

Wed, 01/04/2012 - 09:15 | Link to Comment Archduke
Archduke's picture

+1 on that.  early north american settlers suffered from "rabbit starvation",

aka "mal du caribou".  still it's nice easy source of protein and is so dishless

(that would be irish for delicious).  I'd say it would be part of a _varied_ diet.

Wed, 01/04/2012 - 09:17 | Link to Comment flattrader
flattrader's picture

Raising rabbits is far easier (and more reliable) than shooting them in the wild.

Better ROI than chickens, cattle, pigs etc...in terms of protein (high) /fat (low).

 

Tue, 01/03/2012 - 22:07 | Link to Comment xela2200
xela2200's picture

God loves chickens. That is why He/She/It made so many animals taste like them.

Tue, 01/03/2012 - 19:26 | Link to Comment sabra1
sabra1's picture

maybe in part 5 you'll mention HAARP, or maybe, those pesky chem-trail thingies up there yonder? maybe mention seizure of hobby farms, little front yard garden seizures! $10,000 fines if hay stacks emit any dust! wait! i have another one! fracking! fracking on farmland! food grown on it is sure to give ya gas! then, then, we'll all get $10,000 fines! and, if we can't pay up, maybe a visit to one of those free wi-fi fema family fun centers!

Tue, 01/03/2012 - 19:30 | Link to Comment lakecity55
lakecity55's picture

note to self: press "enter" once.

Tue, 01/03/2012 - 19:28 | Link to Comment lakecity55
lakecity55's picture

Note to self: add  more MREs and freeze-dried food on next ammo run. Push the coolies harder in the silver mine.

Tue, 01/03/2012 - 19:30 | Link to Comment pursueliberty
pursueliberty's picture

I don't see how the 1 million mark is that big of a deal according to the numbers based on population.

 

That is around 11% of the population of LA county, which holds over 20% of californias population.  I'm actually suprised the number isn't higher considering.  It will only get worse.  The chicken processors are going to push hard this year for price increases.  Chicken demand has been pretty good this past year due to the increase in beef prices world wide.  As beef continues to rise you will see even more people eating chicken.

Tue, 01/03/2012 - 19:37 | Link to Comment prains
prains's picture

try and visualise the frustration of exiting a parking lot at the same time as 1000 people at christmas time. now picture in your mind, 1 million tired hungry people with no prospect of a future.

chicken is not what they are interested in.

Tue, 01/03/2012 - 23:42 | Link to Comment WonderDawg
WonderDawg's picture

Those Chick-Fil-A commercials are finally making a difference.

Wed, 01/04/2012 - 09:07 | Link to Comment HungrySeagull
HungrySeagull's picture

Also visualize 500 to 1000 truckloads being loaded every few days in the Meat Triangle. Those go west.

There was one place in Sacremento that calls me on the CB when I get close to the Gaurd shack, "Hey there [company name] whatcha got?"

"Meat"

"Come right on in." they are unloaded first ahead of everyone else sitting on the sides of the streets waiting for the dock. Remember that they have to be there on time to unload and reload into the food store truck and then driven to the grocery store or walmart. (Walmart Distribution Centers are a totally seperate and independant system.)

 

Everyone else from Butchers to Taverns must go to market such as Hunt's Point in NYC or south side skid produce market or Boston's seafood market to get food for the day's selling or eating.

 

And a ungodly amount of Produce comes out of our Mexican Border areas, some paid for in blood and 2000 miles without sleep to get it there.

Bananas and Grapes dont get a break either, those Dole ships come into Philly and unload. They hustle chop chop quick.

 

Idaho has mountains of Potatoes. You can literally back a trailer up to a pile on the ground and take on a load in a few minutes. 48,000 pounds of taters will keep a small town good for a week or so.

Multilpy that by several dozen trucks worth for a big city like LA for a week... or entire grain trains taking to and from elevators.

Scale up from there.

 

These United States work hard everyday to get that food to the store.

Tue, 01/03/2012 - 19:38 | Link to Comment yogibear
yogibear's picture

Bernanke and the Federal Reserve will do an excellent job of inflating food prices in 2012 though more and more quantitative easing (printing). Starve the world Bernanke and the Fed. 

Tue, 01/03/2012 - 20:10 | Link to Comment Teamtc321
Teamtc321's picture

There all fucking printing like mad men.  

Tue, 01/03/2012 - 19:53 | Link to Comment Cheesy Bastard
Cheesy Bastard's picture

One last 2012 predictions article.  Food stamp nation included:

http://www.shtfplan.com/forecasting/2012-predictions-of-a-mad-tin-foiler...

 

Tue, 01/03/2012 - 20:05 | Link to Comment Midwest Prepper
Midwest Prepper's picture

There is a high likelihood that these food shortages will come and hit us in the form of food riots in America in 2012 .

Game changer.

The next 5 years will be unlike any other half decade in history....

Tue, 01/03/2012 - 22:09 | Link to Comment xela2200
xela2200's picture

The next five? Get ready for different times altogether.

Tue, 01/03/2012 - 20:07 | Link to Comment non_anon
non_anon's picture

no shit, Sherlock, as any normal human being would've already known

unless you live in the bubble that is called DoC (the District of Criminals)

Tue, 01/03/2012 - 20:24 | Link to Comment Everybodys All ...
Everybodys All American's picture

The Arab Spring almost 100% correlated to food inflation.

Wed, 01/04/2012 - 08:59 | Link to Comment Archduke
Archduke's picture

+1. add in food related turmoil in south indian continent;

demographics and arable land fractionalization in africa.

and related more critical draught and soil salinity problems.

Tue, 01/03/2012 - 20:25 | Link to Comment Whalley World
Whalley World's picture

in anticpation of food shortages, a few of us on boundary bay use out stand up paddleboards to catch crab and shoot flounder with our spear guns.  have scoped out wild apple trees and know of the best berry patches.  meanwhile most will wander aimlessly like zombies moaning food, food

Tue, 01/03/2012 - 20:58 | Link to Comment non_anon
non_anon's picture

also just read prescription drug shortage sets new record in US, perish the thought, from 2011 expected 2012

http://hosted.ap.org/dynamic/stories/U/US_DRUG_SHORTAGES?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2012-01-03-18-27-31

 

Tue, 01/03/2012 - 21:40 | Link to Comment juangrande
juangrande's picture

I"m pretty sure a food shortage is a bad thing, but a prescription drug shortage might be just what the doctor ordered!

Tue, 01/03/2012 - 22:11 | Link to Comment xela2200
xela2200's picture

That is funny, but it is not.

Wed, 01/04/2012 - 09:11 | Link to Comment HungrySeagull
HungrySeagull's picture

If the pesky FOA bans of the late 1800's and early 1900's are lifted and certain items are made availible again for the medicine cabinet there wont be such a dependance on the Hospital and Doctor.

 

As a child a spoonful of something something usually cures the boo boo and get a good night's sleep.

As an adult, nothing beats a good stiff vicks.

Tue, 01/03/2012 - 22:11 | Link to Comment pods
pods's picture

Yeah, but that may actually save more people than it kills.

pods

Tue, 01/03/2012 - 23:14 | Link to Comment Judge Arrow
Judge Arrow's picture

This is the canary in the coal-mine - the ugly fact is there is no $ in pharma anymore - the big guys got zip in the pipeline, investors have shrunk from little firms and the FDA makes it impossible for existing drugs - aspirin would NEVER get through today - the zero risk policy means zero products. China pharma is messy at best and products are too suspect for serious therapy. It is an industry in collapse, doctors are screaming at the FDA for drugs. Quietly, daily, the industry goes away like a huge balloon with a steady leak. Hope that when you go to the local pharmacy that your immediate prescription for your child with leukemia, to cite just one drug, won't be "backordered" - it is happening everywhere right now - much like what goes on and will more and more be evident, industry by industry, piece by piece, as the structure comes apart and producers leave the scene.

Tue, 01/03/2012 - 23:45 | Link to Comment pods
pods's picture

I see you know the industry well!

Pipelines are shot.  Capital is being used to devour anyone with less capital and a pipeline (Pfizer eats Wyeth) and there is not going to be a new blockbuster drug class to come out any time soon.

R&D (my area) is about dead, most spending has been moved to phase II&III clinicals to get any money they can.  Generics have some cash and are spending.

Vaccines are okay, lots of money there.  Of course, it is all government money, and they have little, if any, provable benefit.

pods

 

Wed, 01/04/2012 - 09:16 | Link to Comment HungrySeagull
HungrySeagull's picture

Tynenol are hauled as a raw powder in one ton bags on a pallet. They are precisely one ton.

The pure stuff will kill you on a teaspoonfull. St Louis has a facility downtown that takes a few truckloads of the powder a week.

Unfortunately tynenol does not work well anymore for me and when I have surgery the doctor hands me something equal to the overseas Oxycodin APAP with the lowest or no tynenol.

McKesson in Memphis run high dollar loads. You would not know exactly which trailer has it. But those go to hospitals. I see those trailers from time to time.

 

Had a pallet jack get away from me once in a mckesson facility. 300,00 dollars worth of little vials tipped towards the floor. I slammed them down to the floor fully expecting the bottom pallet to smash and was shipped to the hospital myself because it's just too much risk hauling this shit. Makes one bald and strung out by 30.

Tue, 01/03/2012 - 20:59 | Link to Comment toadold
toadold's picture

I wonder if raising mules will come back in to fashion or perhaps steam engine powered farm equipment that can burn wood... or hippies. 

Tue, 01/03/2012 - 21:47 | Link to Comment Teamtc321
Teamtc321's picture

Prepare for local business, prepare to protect it as well. Don't forget to have a good saddle horse also. Or have one picked out atleast. 

Tue, 01/03/2012 - 22:16 | Link to Comment xela2200
xela2200's picture

Lots of wild horses in Texas. I had a horse as a kid. Never had to worry about mechanical problems.

Wild pigs all over the south for bacon. Whatever happened to the stirling engine?

Wed, 01/04/2012 - 09:19 | Link to Comment HungrySeagull
HungrySeagull's picture

The Stirling be alive and well. Incorperated in some big time technology. I think there are large array mirror furnaces using them to get power.

 

You can drive several hundred feet of copper straight down in your back yard for a good distance. Eventually you have a stirling type engine inside your house to transfer the heat/cold.

But copper is such a bitch with these scrawny starving thieves stealing them left and right. It's easier to make them out of silver or something.

Pigs I can do. How do you want it? Double aught semi auto twelve gauge or .45 super?

Be worth a Bottle or two to ease those muscles after a time on the horse or being chased by these hogs.

Tue, 01/03/2012 - 21:00 | Link to Comment Shizzmoney
Shizzmoney's picture

Will Americans be able to afford to pay what the world can afford to pay, for food?

 

No.  But I will be able to afford the knife made by slave labor in China to slit my wrists and throat after reading this article.

Really sobering stuff. 

Tue, 01/03/2012 - 21:07 | Link to Comment Miss Expectations
Miss Expectations's picture

Chem Trails = Aluminum (and other stuff)

Aluminum Toxicity

When soils are too acidic, aluminum that is locked up in clay minerals dissolves into the soil as toxic, electrically charged particles called ions, making it hard for most plants to grow. In fact, aluminum toxicity in acidic soils limits crop production in as much as half the world's arable land, mostly in developing countries in Africa, Asia and South America.

http://www.news.cornell.edu/stories/Aug07/SoilsKochian.kr.html

Tue, 01/03/2012 - 22:03 | Link to Comment dogismyth
dogismyth's picture

oh...golly gee whiz....you really believe that crap?

If you understood basic math, you would realize that the amount of aluminum that is needed to "enrich" soils from the skies is well beyond the production levels of the world.  And aluminum would be in such demand for ordinary uses, that prices would inevitably skyrocket.  Not happening.

If you want to believe in your theory, then I suggest you also review/collect some hard data, preferably some stratified soil samples.  But in this day and age, no one needs any hard data to back them up.  That's because most people are nonsensical and are easily herded/farmed.

If you'd like, I can provide your with a dumpster full of references dealing with your "chemtrails" and weather control.

Tue, 01/03/2012 - 22:25 | Link to Comment delacroix
delacroix's picture

autopsies, on deceased alzheimers sufferers, revealed elevated levels of aluminum, in the brain. much higher than a non alzheimers victim. how does it get there?

Wed, 01/04/2012 - 08:39 | Link to Comment KK Tipton
KK Tipton's picture

Cooking pots...and antiperspirants.

"One of the suspected environmental risks for the development of Alzheimer’s disease, which has been highly controversial in the scientific literature, is lifelong exposure to high levels of aluminum. Exposure may come through many sources, including drinking water, cooking with aluminum pots and pans and use of antiperspirants. Most antiperspirants contain aluminum salts, and there is a potential risk that aluminum may be absorbed through the skin of the armpit, resulting in ultimate accumulation of high levels of this metal in the brain."

Now, supposedly, none of this has been proven. But you know how "science" goes.

Use cast iron or stainless pots and pans. And use deodorant instead.
Better for you anyway.

 

 

 

Wed, 01/04/2012 - 09:22 | Link to Comment HungrySeagull
HungrySeagull's picture

I spent time around aluminum plants. I'm still here.

 

Foundries too.

 

It aint the chemtrail that gets you. It's the shit in the soil. Fallow a year and next year you have good pasture or cropland again. Keep reusing it over and over and over... it wears out and refuses to grow anything.

Tue, 01/03/2012 - 22:51 | Link to Comment Green Leader
Green Leader's picture

Is that you, Mosley?

Wed, 01/04/2012 - 06:48 | Link to Comment Miss Expectations
Miss Expectations's picture

Monsanto's transgenic patented seeds or heirloom seeds?  Which will grow?

Tue, 01/03/2012 - 23:21 | Link to Comment Judge Arrow
Judge Arrow's picture

Add gypsum, solved! Been done for centuries. Keep drinking, dear, but watch that glass, it is mostly aluminum silicate - also known as - sand.

Wed, 01/04/2012 - 11:08 | Link to Comment HungrySeagull
HungrySeagull's picture

Had a small accident due to pure bad luck for being in the wrong place at the wrong time once.

I ended up breathing a atmosphere filled with cement like dust.

 

From that time on I used a face filter to stay in the bulk business but eventually had to walk away. That damn dust is just too much. Call me one of the lucky ones. However the last MRI revealed the extent of the damage that was done decades ago. Pretty damning to know at least one way you are going to leave this mortal earth.

Wed, 01/04/2012 - 09:05 | Link to Comment Archduke
Archduke's picture

aluminium (or bauxite) is the 3d most common element in the core.

 

but you're right.  ph and salinity are critical problems.  I'm just not

convinced chemtrails are significant compared with the rest of our

dumping and leaching.  salinity for one can be a feedback loop. dry

clay soils will tend to become water repellent, like baked clay.

 

Tue, 01/03/2012 - 21:34 | Link to Comment Stu Pedassle
Stu Pedassle's picture

True, that is only 11% of the population in LA County, but I would think there is no where near the number of cops in LA County to keep order if those 1,000,000+ gubmint dependent stomachs have to make do on half as much in a few months and then half as much again a month or two later if hyperinfla-shit starts to get real.

Tue, 01/03/2012 - 21:52 | Link to Comment youngman
youngman's picture

I am selling 90 acres of good Iowa farmland for $12,000 an acre....the neighbor is buying it...

here is the future of farming....planters and fertilizers....all computer controlled with the eyes in the skys...so in fertil soil..more seeds are planted and less fertilizer...and where it is not...less seeds more fertilizer...farming is truly a science now...and also a financial business...investing in futures etc...you need to be big to make your equipment payoff...a $250,000 tractor is not going to payoff on a 60 acre farm..this is our ace in the hole I think...and a way to get back to our enemies.....you want food...here is what it costs....lots....a whole lot..more than your damn oil

Tue, 01/03/2012 - 22:47 | Link to Comment Lndmvr
Lndmvr's picture

Did a farm inspection this week in west iowa. 2500 acres, 2000 feeder cows, gross = 6 million. There were 2 dead cows put in the drive, thought about cutting a leg off as it was freezing since they died. Then thought how silly It seemed.

Wed, 01/04/2012 - 09:23 | Link to Comment HungrySeagull
HungrySeagull's picture

I tell you what.

That desiel to run the tractor. Eh?

My vision for farms is to go vertical using glass sky scrapers on a large scale.

Wed, 01/04/2012 - 10:04 | Link to Comment flattrader
flattrader's picture

With integrated aquaponics.

This guy is doing it at ground level on a small scale.

growingpower.org

Got fish?

Tue, 01/03/2012 - 21:53 | Link to Comment billybobtx
billybobtx's picture

In short? Paving over the earth decreases rainfall.

 

14 years is but a fart in god's world you global warming doofus. whatever else you said got lost with that idiocy, sorry.

Wed, 01/04/2012 - 03:31 | Link to Comment the tower
the tower's picture

Go back to school billybobtx. Paving over the earth DOES decrease rainfall, but only in that area as the rain will fall somewhere else. This is what causes larger amounts of rain to fall in areas that are not prepared for it, because "God" did not have time to adapt... This has nothing to do with global warming, just too large a change in the landscape in too short a time.

Wed, 01/04/2012 - 09:29 | Link to Comment HungrySeagull
HungrySeagull's picture

Baltimore to DC had farms back in the day. Truly a land of milk and honey.

All of that is now paved over. The last time I was in that area, I got footsore for want of grassland to walk on, or at least a wooded trail in the Appalachians

Tue, 01/03/2012 - 22:09 | Link to Comment earleflorida
earleflorida's picture

"Desalination-China's Next Growth Industry"

http://www.community.nasdaq/News/2011-11/desalination-chinas-next-growth...        Please follow 'google oops' link... thankyou

"Thorium Nuclear Power" - Safe, Inexpensive, and Plentiful

China's Rare Earth Elements eating America's lunch [Technology/IP]

Two-Groups [30 total @15x2] ___ Lanthanide Series (LS) & Actinide Series (AS)*

*AS are called trans-uranium, which means they are synthetic or man-made, the most precious/valuable group

**These too [REE's], are abundant in America [more so than anywhere else, other than china],... but, no one seems concerned about our future, other than growing China --- somethings wrong with this picture!

HELP!!!

Tue, 01/03/2012 - 22:32 | Link to Comment Teamtc321
Teamtc321's picture

Earl,

Vortex pumps spin trash out of water, they crush a rope of heavier object's to the center as the water is forced down a pipe spinning at high speed's, then the so called rope is diverted out of the center of the pipe to be collected.

Simple explaination within my knowledge base sorry, but this is done in the oil field often, the issue is cost. To clean water for re-sale is twice as expensive as vortexing, cleaning salt water or un-clean water. This is why the oil/nat gas industry inject's the salt water back in the formation it came from during the fracing/producing stage of a well's life.   

 

Tue, 01/03/2012 - 23:21 | Link to Comment earleflorida
earleflorida's picture

@Teamtc321

thanks for response. But,... what i was referencing was sea/ocean water desalination ie.drinking/agricultural, etc. - not fracking with salt water or brackish water using vortex pumps [cost constraints?] 

currently:  "Israel Desalination Boom" 5/18/10 [~8ml ppl/ ~50% arid/desert/rocky uninhabital land]

http://www.greenchipstocks.com/articles/global-desalination-companies/963

Food Shortages in Egypt [?] ___ with ~95% of Egypt being desert, and having a population 10x's that of Israel at ~80ml ppl there are solutions. Egypt's geography works for them in gratuitous ways - bordered by the Mediterranean and Red Sea.

Their cotton is the best in the world, figs, beans, etc,.etc. - but lacks water. Answer: Desalination!!! 

"Egypt Protest Over Water Shortages"   7/27/2010

http://www.irinnews.org/report.aspx?reportid=89981

Ps. Sieman's, GE, **AMAT getting into Desalination big time 

Ps.2 Turkey,India, and others are now moving foward into vast desalination projects as is "CHINA"?

Wed, 01/04/2012 - 09:34 | Link to Comment HungrySeagull
HungrySeagull's picture

Oh, taking Salt out of ocean water to make water good to drink for humans. I see.

 

It's gonna cost ya.

All those million dollar water front hurricane property to buy out.

 

I tell you what. Take a look at the mighty Columbia River between Washington and Oregon. and then work you way down the Colorado until it becomes a bit of stream in a mud pit wash draw by the time it reaches the Cali Az border.

There is water to be done for big business, the time to get into it is now.

Now my water knowledge is literally limited to just one place on a hill in maine where they pull a absolute shitload of water straight up from a monster aquafier, filter it down very tight, bottle it and ship it out in railcars and trucks.

One more tidbit for ya.

The Tropicana Juice train dont stop for nothing on the east coast each day. Nothing has a higher priority than this single train carrying enough Juice to keep Jersey happy.

Tue, 01/03/2012 - 23:13 | Link to Comment toadold
toadold's picture

The problem with stirling engines and steam engines is that they are not as effiecient as internal combustion engines in converting heat into mechanical energy, if there is a reasonable supply of gasoline or diesel. Where a Stirling or steam engine would come in handy would be when all you could get to burn would be coal, charcol, or wood.  The steam enging also had the hassle of the weight of water it had to haul around. Nobody came up with a good recircualting system for the water.  A horse or a mule is even more inefficient but they can use a very wide variety of vegetation for fuel.  If you could tweak the geneticas and get an animal with the size and power of a mule and the digestive system of a goat you might have a product for 2013. 

Wed, 01/04/2012 - 09:39 | Link to Comment HungrySeagull
HungrySeagull's picture

They may be inefficient, but we'll use them damn things. I love trains and steam. If you get the FRA the hell out of our way we will pull them trains well enough.

And unemployment will go away soon enough as the poor homeless are retrained in large precision maintance of steam locomotives.

 

There was a time every tiny town with a post office had a rail depot for the mail at the very least. Most towns managed to make enough of something to ship out on the rail daily. But no, all of that has been reduced to just about a robot engine set remotely controlled from hundreds of miles away these days.

Sail too. The old days of Windjammers and Clippers. Takes a little more time me thinks.

Today's materials and technology will probably make these old methods pretty good. They managed to beat a mustang plane with a carbon fiber one that carried a little engine and a smaller lighter frame.

 

Too bad we lost one of those mustangs some time ago, me thinks they clipped away a wee bit too much off the wingtips and tail.

Tue, 01/03/2012 - 23:35 | Link to Comment alphabrew
alphabrew's picture

I got 99 cookies, 'cause a bitch ate one.

Tue, 01/03/2012 - 23:54 | Link to Comment Magnum
Magnum's picture

Food prices are definitely on the rise, and laid off workers are returning to farm land.  This is true all over the world.  In one country I visit frequently, the price of a certain very large crop doubled over the course of 8 weeks due to a freeze in a neighboring country.  In no time, people with no farming experience flocked back to the farms to plant more.  I thought this would surely lead to a glut the following year, but prices are stable at the price that was doubled in 2008.  It's very hard to get food prices to decline.

Wed, 01/04/2012 - 01:01 | Link to Comment TradingTroll
TradingTroll's picture

" Inputs to food production are heavily composed of fossil fuels"

NO

" Inputs to food production are heavily composed of political interference"

Because at 6:1, the other fossil fuel, natural gas should be $17 and its $4, but farmers don't run their trucks on NG.

Wed, 01/04/2012 - 11:14 | Link to Comment HungrySeagull
HungrySeagull's picture

NG is so cheap and so abundant right now... it's possible to heat my home which I am doing and get a car that runs on it charging over night off my mains.

 

Am I gonna do it? hell no. I am sick of debt payments and aint gonna play no more in the world of consumerism. I buy what we need and that's it.

 

The technology recipie for Gas Works calls for a bit of Coal and maybe some sawdust, ore and lime as a filter along with plenty of water and a good retort.

 

You can and did have one in every little town all the way back starting about 1840 if I am not mistaken. First coal gas then water gas finally obselete by electricity and NG.

 

Ya know, I used to fear the LNG facilities on our east coast. Those are well established nuclear like bombs ready to totally destroy the city. However it will have to take a one hell of a accelerant in immense quanity to make it happen.

Wed, 01/04/2012 - 01:04 | Link to Comment swani
swani's picture

Cunnilingus.

Wed, 01/04/2012 - 03:31 | Link to Comment tianya201
tianya201's picture

Nehmen Sie an diesem vorgewählten Belstaff lederjacke herren insgesamt sieben Kandidaten. Zusätzlich zu den grundlegenden aufzugeben Iowa, der frühere US-Botschafter Jon Huntsman, wurden die restlichen sechs alle in Iowa an diesem Tag. Nach den Ergebnissen der Umfrage,Belstaff jacket der ehemalige Gouverneur von Massachusetts Mitt Romney, Rep. Ron Paul, Texas, und der ehemalige Senator Rick Pennsylvania Santos Haslem Unterstützung für die Führung. Doch etwa 40% der Wähler bei den Vorwahlen noch ändern Belstaff Jacken herren können ihre Unterstützung für das Objekt, so der ehemalige Sprecher des Repräsentantenhauses Newt Gingrich und Gouverneur von Texas, Rick Perry und die Minnesota House of Representatives nicht Belstaff Tasche keine Chance, von hinten kommen.

In Iowa wurde die Landeshauptstadt Belstaff lederjacke damen Höhepunkt der zwei Wahlen, Hunderte von Wählern in der Szene registriert in der Nacht nach der anderen, um bei den Vorwahlen Belstaff Jacken damen teilnehmen.

Canada Goose Parka,canada goose jakke,MBT zapatos,MBT España

Wed, 01/04/2012 - 04:03 | Link to Comment xyz2011
xyz2011's picture

From all-white flower girl dresses to ivory  are wedding dresses 2012 style searching for be mermaid wedding dresses amazed  right 2012 style wedding dress will needthat may stand wedding dress under $100 out in your wedding day.

Wed, 01/04/2012 - 10:04 | Link to Comment NEOSERF
NEOSERF's picture

Cheetohs and Bugles...it's what's for dinner

Sun, 03/11/2012 - 08:04 | Link to Comment Gelir
Gelir's picture

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