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Rocketship on Corn... implying rising food costs

rising_food_prices_321725-100x100Steve Shenk, the president and co-founder of eFoodsDirect was interviewed on the Alex Jones radio show, and he came bearing bad news: food prices are going up.  Really fast.

It’s fascinating to hear first hand from someone involved in the purchase of food commodities. It was good to learn precisely what some of the factors are that are driving the prices of your groceries through the roof.  First and foremost, of course, inflation of the money supply is infecting everything, but other factors are also in play.

In order to keep prices as low as possible for as long as possible, Shenk buys commodity futures as much as a year out, bidding on crops before they’re even in the ground, so he pays less for the food he sells to you.  By the time it’s processed and shipped, the food you get from eFoodsDirect will most certainly cost less than much of what you’ll be able to get at the grocery store.  But what Shenk is seeing in the market now does not bode well.

“We all of a sudden have just an instant jump in some of the basics,” Shenk reports, “rice, beans, and the wheat they make pasta from.   Our bread wheat is being thrown into animal feed because it’s now cheaper than corn as a result of the fact that ethanol has pushed the price of corn up, and as a result, it’s pushed up the price of gas, and we’ve just got this domino effect that’s absolutely insane.”

“Wheat’s going nuts. Everything is going up by 20 percent by the end of the month.”

“Literally the stock market is crashing and re-crashing every other day,” reports Shenk. “What that means to the people out there is that companies are going to go under, jobs are going to be lost, and they won’t be able to afford to buy the food that is already too expensive for the millions of Americans who are on food stamps.”

“This trend that we’re seeing is a perfect storm with the stock market now affecting food prices, with the ethanol and the gas prices affecting food prices…and the flooding and also the droughts and everything that’s going on with food production not just in America, but worldwide.”

“So we’ve got the major population centers of the world—China, India—out farming the rest of the planet for anything they can get for food. So that’s what’s causing this immediate jump in one month’s time: the pasta grains going up 20%, rice, beans, some of the basics, and then everything else is going up crazy too.”

“That’s why we tell people that they need to get going at anything that they can do to get in food…People have to look at this and say ‘we’ve got to get food in now’ because we’ve got the perfect storm and those prices are starting to just absolutely skyrocket.  We thought they were bad before; now, they’re just absolutely insane.”

Alex  reminded listeners that food stamps are simply the high tech soup lines of today.  If that program was not “hiding” the problem from view, we would be seeing soup kitchens in every town.  Out of a population of 300 million Americans, 50 million of those men, women, and children are currently depending on food stamps for their subsistence.

Alex’s recommendation to his listeners, which is something I’ve been encouraging my readers here to do, is to “buy the food now before it goes up in price, and you’ll be able to eat the food later, and save money, and beat inflation.”

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