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Letter Re: Why Food Prices are Soaring
Jim
I enjoy your books (have bought two for others as gifts) and blog site. I came
across this
article [from Canada] describing another unintended consequence
of the extreme liquidity the Fed is using to prop up our housing market/economy-
high food
prices. Aside from the new 'miracle' fuel - ethanol - our government policies
are eroding our purchasing power in every sector of our lives. Here is an excerpt
from the article:
"After steamrolling through a laundry list of base metals, then oil and gas,
the global commodity boom is finally hitting us in the gut: at the supermarket
checkout counter.
Canadians paid 3.8% more for food in April compared with a year earlier, including
an extra 12.9% for fresh vegetables. The experts have coined a new term to
describe the phenomenon. They call it agflation, and they blame the hedge funds.
The examples are everywhere. Global milk prices are rising at the fastest rate
ever. Powdered milk, a key benchmark, has jumped 60% in six months to US $1.58
at the beginning of May. Since 2000, beef prices have jumped nearly 30% on
the Chicago Mercantile Exchange." The article is pretty enlightening.
Thanks for your vigilance and willingness to educate.
- John in Virginia
