The Rising Cost of Food

No Bees, No Bats, No Food for main street affordable, Phenomenal rise in Food Costs. Add that to a major point in the HOT/DRY cycle pending, and eatables have only one way to go, up. However food and energy does not count in the standard inflationary figures, because you and I do not use them.


Headline: Rising coffee prices spell a higher cost for that cuppa joe

Getting caffeinated is going to get costlier.

The J.M. Smucker Co. just bumped up the price of most Folgers, Dunkin’ Donuts, Millstone and Folger Gourmet Selections coffees that are sold retail IN THE U.S., according to Reuters.

The approximate nine percent hike is due to ongoing increases in the cost of green coffee beans.

Headline: Bacon Price Surge May Last Through August as Herd Cutbacks Tighten Supply

Bacon lovers in the U.S. are paying record prices during the seasonal summer peak for consumption, and costs may keep rising through August because smaller hog herds led to an unprecedented plunge in meat inventories.

Headline: America’s Most Common Bat Headed for Eastern Extinction

By the time today’s toddlers graduate from high school, the most common bat in North America may have vanished altogether from the eastern United States.

Researchers combined historical population trends with mortality counts in Myotis lucifugus colonies struck by White-Nose Syndrome, an extraordinarily virulent bat disease first identified in 2006. According to their models, M. lucifugus, better known as the little brown bat, has a 99 percent chance of vanishing from the east, soon.

Headline: Wheat near 2-year high on Russia export ban

Wheat prices in both the United States and Europe retreated on Friday but held just below two-year highs as markets reacted to the sudden imposition of a ban on grain exports from drought-hit Russia.

If the threat of deflation is real, why does it not manifest itself in the secular trends?

Spot Commodity Prices: CRB Spot Index (1947 – Present);
16-Raw Industrial Spot Price (1935-1947);
Great Britain Wholesale Price of All Commodities (1885-1935)

What is deflating other than the value of debt? The central planners, protecting the banking system and the currency that denominates its debt, print money to cushion debt implosion. They can do this because money is no longer anchored by gold. In other words, “Sound as a dollar” no longer means anything today.

The commodity bull is largely currency related. This illustrated in the following chart.

Spot Commodity Price Index (CRBSPOT) to Gold Ratio:

Source: Eric De Groot Insights