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| Darrin, good observations and if folks that are ignorant of these circumstances, then they can delve into this quite easily to get even more informed through blogs such as yours.
I was recently sitting on an airplane in 1st class having dialog with an executive from Oracle.
We delved into a conversation about how the middle class in America is being left behind and how this person had to stay working for another 5 years to re-coop the 401k losses that the banks had saddled her with via the mortgage melt down.
Our conversation wandered over into the ag sector as she was very interested as to why food and gas prices were escalating so.
She was very perplexed to come of the knowledge that we as consumers of food on this globe are walking a very thin rope when it comes to mother nature's wrath that has been hampering farmers across the globe from building up carryover's. I told her we are only 18 days away from starvation as a globe if we closed the food commodity spigot instantaneously.
I told here that the more globalized our economies have become, the more it has induced just in time state of deliveries for end products. Capacity utilization has remarkably shrunk because of this global mortgage bubble bursting causing many companies to down size and become leaner to stave off delinquency and foreclosure.
I also told her that thanks to the banks self enriching actions(CDO's) for taking the globally economies down in one quantum swoop, the US currency is on the cusp of losing its reserve status as Benny and the loose cannon FED's are rubber stamping hyperinflation through the creation of fiat currency that has US's bond holder's racing against time converting there hoard's of USless dollar's into hard tangibles in the commodity arena.I also alluded to the US populace losing purchasing power of there currency which adds to the inflationary costs of food and gas.
Hence commodity price explosion. The FED has no choice other than to deflate the debt loads away killing the dollar..
All of the other factor's you mention Darren only add gun powder to this cannon and most people feel they are knowledgeable enough listening to the diatribes espoused on the tube falsely accusing this situation as burning food for fuel the root cause. | |
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Something completely different....
