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World Bank: Food prices up 33% since last year...

Discussion in 'Political Discussion' started by Titus Pullo, Aug 16, 2011.

  1. Titus Pullo

    Titus Pullo Banned

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    AFP: High food prices threaten poorest: World Bank

    Now... will they be 33% higher again next year?

    What do you believe is the root cause of rising food prices?
     
    Last edited: Aug 16, 2011
  2. khayos

    khayos In the Starting Line-Up

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    Obama, obviously.
     
  3. Real World

    Real World Moderator Staff Member

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    Just eat an Ipad.
     
  4. patsfan13

    patsfan13 Hall of Fame Poster PatsFans.com Supporter

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    Instead of using available cost effective energy sources and focusing on developing economically sensible resources we are growing food and burning it for food instead of using it to feed people. Combine that with the effects of governments printing money to try to sustain social welfare states.

    So lib policies and belief in MMGW (now climate change) is causing the poor to starve due to food prices.
     
  5. The Brandon Five

    The Brandon Five Experienced Starter w/First Big Contract

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    #75 Jersey

    In places like the Horn of Africa part of the problem is lack of rule of law as well as taking land from successful farmers (like in Zimbabwe) and giving it to less successful farmers.

    On a more global scale rising energy prices obviously make the production and shipment of food more expensive as well as create more demand for energy sources that are actually derived from food, thereby exacerbating the problem. Not sure about aggregate production this year...demand is certainly not going down.
     
  6. PatriotsReign

    PatriotsReign Hall of Fame Poster

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    #18 Jersey

    Anyone who believes we are heading toward INFLATION is wrong...it won't happen. At least not for a few years anyway.

    We have actually just returned to deflation after the effects of QE1 & QE2 are wearing off. As long as our gov't doesn't artificially inflate our economy with a stimulus, we'll remain in deflationary times.

    Until consumers deleverage their debt, they will continue not to spend. And as long as demand doesn't increase significantly (which it won't), we'll remain in deflation. Private sector demand for credit remains at historic lows and demand for credit is another indicator of deflationary times.

    Let us all be reminded that the single biggest reason Bernanke imposed QE1/QE2 was to keep DEFLATION from ocurring.

    http://www.coinnews.tv/u-s-back-in-...are-ends-hyperinflationists-wrong-twice-over/

    The following are deflationary indicators:

    -Falling Credit Marked-to-Market
    -Falling Treasury Yields
    -Falling Home Prices
    -Rising Corporate Bond Yields
    -Rising Dollar
    -Falling Commodity Prices
    -Falling Consumer Prices
    -Rising Unemployment
    -Negative GDP
    -Falling Stock Market
    -Spiking Base Money Supply
    -Banks Hoarding Cash
    -Rising Savings Rate
    -Purchasing Power of Gold Rises
    -Rising Number of Bank Failures”
     
    Last edited: Aug 16, 2011
  7. Titus Pullo

    Titus Pullo Banned

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    mostly spot-on

    pathetic
     
    Last edited: Aug 16, 2011
  8. Harry Boy

    Harry Boy Look Up, It's Amazing PatsFans.com Supporter

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    It's Bush's Fault

    God Damn Bush
     
  9. The Brandon Five

    The Brandon Five Experienced Starter w/First Big Contract

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    #75 Jersey

    Not sure I agree that all of those are deflationary...how are rising corporate bond rates and gold prices a deflationary signal? I haven't seen too much "falling" going on in commodity or consumer prices.
     
  10. PatriotsReign

    PatriotsReign Hall of Fame Poster

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    #18 Jersey

    People buy gold to protect/maintain their assets in deflationary times...that's pretty much the "golden rule" on gold.

    Also, we were in a very deflationary period prior to QE1 & 2 and the affects are still hangin on/artificially preventing all out deflation.

    Bernanke clearly stated to the American people that QE1&2 were being implemented due to the clear dangers of deflation. Since it ran out, why do you believe deflation hasn't/isn't returning?

    Deflation is the result of significant decreases in the money supply. Many economists dont count credit as part of the money supply, but it clearly is a MAJOR part here in the US. We know for a fact people have less disposeable income due to unemployment and huge declines in available credit combined with huge declines in the demand for credit due to deleveraging. All of this is expected to continue for several years.
     
    Last edited: Aug 16, 2011
  11. patsfan13

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    It is pathetic that we make the situation worse due to stupid policies, oh wait that isn't what you meant. :p
     
  12. Titus Pullo

    Titus Pullo Banned

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    No, it means your rationale is like acknowledging you have a really bad football team, but only replacing the kicker is what you feel would fix it.

    It was made pretty clear last week that you have no idea what you're talking about regarding world energy flow rates and climate change, so it stands to reason you'd have no idea what is really driving high food prices ... so instead you just slap a partisan explanation on it all. :rolleyes:

    When you're ready, think about educating yourself:

    Eating Fossil Fuels
     
  13. patsfan13

    patsfan13 Hall of Fame Poster PatsFans.com Supporter

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    Since you are ignorant of the energy issue and options the rest of you conclusions are wrong.
     
  14. chicowalker

    chicowalker Pro Bowl Player

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    Same can be said -- and is much more common -- regarding gold and inflation.
     
  15. The Brandon Five

    The Brandon Five Experienced Starter w/First Big Contract

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    #75 Jersey

    It is a store of value either way, but since we came off the gold standard I think that gold is known as a hedge against inflation.

    Gold: the ultimate inflation hedge - Telegraph

    Your list indicated the opposite:
    -
     
  16. wistahpatsfan

    wistahpatsfan Pro Bowl Player

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    #75 Jersey

    Warren Buffet on gold:

    "You could take all the gold that's ever been mined, and it would fill a cube 67 feet in each direction. For what that's worth at current gold prices, you could buy all -- not some -- all of the farmland in the United States," Buffett said. "Plus, you could buy 10 Exxon Mobils (XOM, news, msgs), plus have $1 trillion of walking-around money. Or you could have a big cube of metal. Which would you take? Which is going to produce more value?"

    And here's another good one by The Buff.

    "(Gold) gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head."
     
  17. PatriotsReign

    PatriotsReign Hall of Fame Poster

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    #18 Jersey

    Although gold is mostly known as a hedge against inflation, it is also a hedge against deflation. the reason most people think of gold as a hedge against inflation is because deflation is so rare in America.

    Since 1900, America has experienced inflation 80% of the time.

    is gold a hedge against deflation - Google Search

    Base money supply refers to actual cash in circulation while money supply has many other dimensions like available credit. When deflation becomes a threat, the gov't typically increases (prints) more money as we've seen in QE1&2. The problem is that it hasn't gotten into the hands of consumers.

    Deflation by definition is a net decrease in the total money supply. Debt & credit are factors determining the net money supply and debt is swallowing both the public & private sectors.
     
    Last edited: Aug 16, 2011
  18. patsfan13

    patsfan13 Hall of Fame Poster PatsFans.com Supporter

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    I heard it said that back in the time of the Roman Empire an ounce of gold could by a good suit, the same is true today. Gold is going up in value relative to the USD as is SIlver because we are printing paper bills and devaluing the currency.
     
  19. The Brandon Five

    The Brandon Five Experienced Starter w/First Big Contract

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    #75 Jersey

    The contraction of credit definitely has reduced the supply of "money". Consumer credit dropped the last two years and Business credit has as well ( remember all the dough GE Finance was lending out at 4%)? That being said, during the same period govt borrowing has exploded. Taken together, how much has total credit contracted?
     
  20. PatriotsReign

    PatriotsReign Hall of Fame Poster

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    #18 Jersey

    I believe the single most important factor determining whether or not we have inflation or deflation is consumer demand. When prices begin to fall, consumers will wait to make a purchase in hopes prices fall further. That is what has happened with the housing industry.

    Gov't borrowing doesn't affect consumer credit or the money supply if there is little demand for it. And right now, consumers are more concerned with deleveraging and the financial industry only wants to give credit to worthy borrowers.

    For hyper-inflation theorists...it aint gonna happen. At least it's not even on the horizon.
     
    Last edited: Aug 17, 2011

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