World Food Prices Are Rising Fast

[Stretch]

As much as I hate to rain on the deflation parade, I must point out that food inflation is increasing worldwide. It seems that food prices are unaware that they should be falling, because they are instead rising fast all around the world.

For example in India, after more than two months of steady decline, inflation has risen for the second week in a row due to a spike in food prices.
http://www.marketskeptics.com/2009/01/world-food-prices-are-rising-fast.html

 

[Machjo]

I won't panic just yet. But let's hope we don't fall into stagflation!

If we suffer recassion combined with deflation, it's sometimes possible to just lower the national bank rates to 0% and print and spend counter-deflationary money. And if taxes are high already and the government is carrying no debt, it's sometimes possible for the government to just reduce taxes too.

In times of full structural employment, labour shortages and inflation, it's possible for the government to simply increase taxes, reduce government spending, or both, as a measure to just take money out of the economy.

But at times of stagflation, it's a double whammy. Then it becomes even more important than ever to use our money efficiently. Owing to inflation, the government must ensure that its revenue exceeds its spending in order to take money out of circulation to bring inflation under control. Yet owing to high unemployment, government must increase spending to stimulate the economy. The only way to increase spending while still ensuring that revenue exceeds spending is to make taxes shoot through the effin' roof, with the government taking some of the money out of circulation and using the rest of the money to provide training in whatever skills the new economy needs to get people back to work.

If stagflation hits, taxes will rise like we've never seen them rise before.

 

[Twila]

Stretch, you just have to walk into RC Superstore to see that prices have infact risen!

 

[Mogz]

No kidding, I bought milk yesterday and I assumed due to the price I was getting a cow along with the 4L jug. Sadly no cow....yet.

 

[VanIsle]

No kidding, I bought milk yesterday and I assumed due to the price I was getting a cow along with the 4L jug. Sadly no cow....yet.

About a month ago, I read an article that stated that even though the price of almost everything was on the decline, food prices would continue to rise. I am a cashier so I do know this to be true. I don't work at Super Store and (no offence meant) I never would. I do go there on rare occasions because it is closer to my home than the store I do work in. I find that for the most part, at least where I live, their produce is usually quite disgusting and just getting into the store is revolting. (garbage all over, chains broken so you cannot put carts back and have to leave your buck in the cart, or the carts go across a line of "traffic" because only one row works for you to get your buck back) I did buy some produce there a few days ago just because the items I bought (bell peppers and bananas) were actually in decent shape and the price was much better then where I work. I paid $8.77 kg for the peppers (coloured, not green which are always the cheapest) and 57 cents for bananas. At my store, peppers are $9.99 kg and bananas are 77. I could not stay at SS because the smell of rotting produce was overwhelming. When I speak of produce there being in decent shape I do mean that. It's stuff you have to plan to use right away or you know it's going to go bad. Bananas were good though as they were green instead of black - a true bonus for that store. I did not check out their dairy line as I don't care for many of the brands they carry so I did not notice their prices. I know that in my own store (using the term "my" very loosely) the cost of milk and cottage cheese have really gone up. I bought a few (about 7) white potatoes a few days ago - medium size. Cost me close to $4.00! I was astonished.
I'll give you an idea of some of our costs. Broccoli crowns - $5.49kg; cauliflower florets $5.47kg; loose celery stalks $1.96kg. I didn't buy milk this trip. I believe though that milk has gone from $3.99 4 litre size to about $4.57 or 4.77. I've been off for a couple of weeks. This is on Vancouver Is. so our prices can often be higher than the mainland. Also, it is more expensive to buy things like crowns and florets but I don't need a lot so I buy those. Some of the specialty breads can cost over $5.00 a loaf. People actually buy this stuff.

 

[lone wolf]

Now grain and corn can be used as gasoline to fuel an addiction to cars. Who's going to win when carbohydrates lose out to hydro carbons?

 

[VanIsle]

Now grain and corn can be used as gasoline to fuel an addiction to cars. Who's going to win when carbohydrates lose out to hydro carbons?

Not the farmers

 

[darkbeaver]

Worse than the Great Depression.

By Dr. Krassimir Petrov

Global Research, February 1, 2009
GoldSeek.com



The mainstream media and Wall Street have reached the consensus that the current credit crisis is the worst since the post-war period. George Soros’ statement that ”the world faces the worst finance crisis since WWII” epitomizes the collective wisdom. The crisis is currently the ultimate scapegoat for all the economic evils that currently plague the global financial system and the global economy – from collapsing stock markets of the world to food shortages in third world counties. We are repeatedly assured that the ultimate fault lies with the Credit Crisis itself; if there were no Credit Crisis, all of these terrible things would never have happened in the economy and the financial markets.
The most extraordinary thing is that the mainstream media has never attempted to compare the current economic environment to the one preceding the Great Depression. In essence, it is assumed outright that the Great Depression can