Food Rationing Hits U.S.

[DrYB/C]

I shudder when I imagine Landscape America two years into the future.


1. “Many parts of America, long considered the breadbasket of the world, are now confronting a once unthinkable phenomenon: food rationing. Major retailers in New York, in areas of New England, and on the West Coast are limiting purchases of flour, rice, and cooking oil as demand outstrips supply. There are also anecdotal reports that some consumers are hoarding grain stocks….”
http://www2.nysun.com/pf.php?id=74994&v=1272088021

[Guest]

Re: Food Rationing Hits U.S.

I am completely agnostic here. Would greatly appreciate some iTulip editorial clarification though, as to what they see as potential issues emerging here on the food front. Is this a symptom of mere hoarding brought about by the rabid food inflation occurring due to monetary dysfunction? Could certainly still be so at this time. If that's the case, the monetary dysfunction causing inflationary expectations is moving into high gear, no?

[globaleconomicollaps]

Re: Food Rationing Hits U.S.

sorry for the double post

[globaleconomicollaps]

Re: Food Rationing Hits U.S.

mish wrote about this the other day. he said that food shooting up is not a result of inflation. Thinking about this makes my head hurt. It had struck me that the reason we talk about inflation is because it is reflected in consumer prices. It is useless to introduce the idea of monetary inflation if it doesn't have any real world impact. I did a spot check of prices at Ross on Saturday and it does look like prices of clothes have dropped a bit over the past few years. lawn furniture is going down or steady. My big hit is in gas and I just don't drive much.


http://globaleconomicanalysis.blogsp...od-prices.html

Energy and food are two places where rising producer costs are passed on t
o the consumer. Some people mistake this for inflation. It's not inflation. Unless there is an increase in money supply and credit, what goes up somewhere must go down somewhere else. This is simple arithmetic and it's amazing how few get it. Credit (marked to market is contracting rapidly). Money supply, measured accurately, is barely moving. Therefore, what goes up somewhere is falling somewhere else. What's going down is home prices, car prices, and prices of damn near anything produced by China and sold at WalMart.

[pescamaaan]

Re: Food Rationing Hits U.S.

""Due to the limited availability of rice, we are limiting rice purchases based on your prior purchasing history," a sign above the dwindling supply said."

always wondered when 'big brother' would use those grocery store loyalty cards against us......they have the data, now they just mine it however they need to. i wonder how many people ever thought that data would be used to prevent them from buying rice!

[ggirod]

Re: Food Rationing Hits U.S.

I shudder when I imagine Landscape America two years into the future.


1. “Many parts of America, long considered the breadbasket of the world, are now confronting a once unthinkable phenomenon: food rationing. Major retailers in New York, in areas of New England, and on the West Coast are limiting purchases of flour, rice, and cooking oil as demand outstrips supply. There are also anecdotal reports that some consumers are hoarding grain stocks….”
http://www2.nysun.com/pf.php?id=74994&v=1272088021

One example in the article, Basmati Rice, has a reasonable explanation.
Based on predicted shortages, India and China are limiting exports of rice to avoid shortages at home. Once the pipeline of Indian rice is empty it will not be refilled real soon.

Bakeries buying bulk flour in warehouse stores because of price increases from their suppliers was interesting. That would seem to be a localized phenomenon which we will probably see more often. Lower priced inventory disappears suddenly as prices rise. IMHO That is an early sign of inflation. Most people don't recognize it as such, and instead they assume that a serious shortage exists. So, guess what, they hoard because supplies are obviously running out. That irrational behavior leads to higher prices, more shocks, and more hoarding.

In the '70s when inflation got going really well, products on the shelves had several price stickers and people could see how often the prices had gone up. Retail has little in the way of margins so we might expect to see that happening soon too. If they don't raise the prices of goods in stock they quickly run out of working capital to maintain much inventory at all. Price increases on stock goods also reduces hoarding by propagating faster and exerting better control on demand.

Finally, articles glorifying the arts of living cheaply and embracing the simple life will increase demand for commodities that otherwise have been stable. When decreased materialism becomes socially acceptable, all sorts of economic derangements will follow.

[globaleconomicollaps]

Re: Food Rationing Hits U.S.

One example in the article, Basmati Rice, has a reasonable explanation.
Based on predicted shortages, India and China are limiting exports of rice to avoid shortages at home. Once the pipeline of Indian rice is empty it will not be refilled real soon.

Don't be misled, the "Basmati Rice" is from Texas.

[ggirod]

Re: Food Rationing Hits U.S.

The rice I saw disappear from stores was Deer Basmati Rice from India, in the foothills of the Himalayas. I think Basmati is trademarked by India and the trademark has been defended. The Texas variety, I believe, is Texmati.

[jeffolie]

Re: Food Rationing Hits U.S.

Even a modest amount of hoarding can lead to a panic.

[Mega]

Re: Food Rationing Hits U.S.

From what i seen of Americans, Frankly if you lost a little weight it wouldn't do you any harm.
Mega

[metalman]

Re: Food Rationing Hits U.S.

mish wrote about this the other day. he said that food shooting up is not a result of inflation. Thinking about this makes my head hurt. It had struck me that the reason we talk about inflation is because it is reflected in consumer prices. It is useless to introduce the idea of monetary inflation if it doesn't have any real world impact. I did a spot check of prices at Ross on Saturday and it does look like prices of clothes have dropped a bit over the past few years. lawn furniture is going down or steady. My big hit is in gas and I just don't drive much.


http://globaleconomicanalysis.blogsp...od-prices.html

Energy and food are two places where rising producer costs are passed on t
o the consumer. Some people mistake this for inflation. It's not inflation. Unless there is an increase in money supply and credit, what goes up somewhere must go down somewhere else. This is simple arithmetic and it's amazing how few get it. Credit (marked to market is contracting rapidly). Money supply, measured accurately, is barely moving. Therefore, what goes up somewhere is falling somewhere else. What's going down is home prices, car prices, and prices of damn near anything produced by China and sold at WalMart.

mish is an asshat...

http://itulip.com/forums/showthread....4048#post34048

and here...

http://itulip.com/forums/showthread....4140#post34140

[Nervous Drake]

Re: Food Rationing Hits U.S.

.

[metalman]

Re: Food Rationing Hits U.S.

From what i seen of Americans, Frankly if you lost a little weight it wouldn't do you any harm.
Mega

couple of pudgy brits i've seen over the years, too. too much fish and chips, beer, blood sausage and speckled dick.

[Guest]

Re: Food Rationing Hits U.S.

Miker -

Well, at least we don't have to eat that wretched steak and kidney pie you fellows chow down with warm beer. Warm beer with steak and kidney pie is for barbarians - anybody who's even vaguely civilized knows that. And fried liver for breakfast with fried tomatoes? Englishmen are just plain barmy.

[phirang]

Re: Food Rationing Hits U.S.

recall that potash is sold by a cartel(only three major producers in the world).

the key to commodities is to understand the cartel: the "pure" s&d equilibrium is less relevant.

more KCL is coming online, but it'll take another 2 yrs for capacity to meaningfully ramp.