This should have you concerned if you believe what they are saying. I’m sure you’ve noticed that food prices continue to rise, not fall, and this may well be the reason why.
MONDAY, FEBRUARY 9, 2009
After reading about the droughts in two major agricultural countries, China and Argentina, I decided to research the extent other food producing nations were also experiencing droughts. This project ended up taking a lot longer than I thought. 2009 looks to be a humanitarian disaster around much of the world
To understand the depth of the food Catastrophe that faces the world this year, consider the graphic below depicting countries by USD value of their agricultural output, as of 2006.
Now, consider the same graphic with the countries experiencing droughts highlighted.
The countries that make up two thirds of the world’s agricultural output are experiencing drought conditions. Whether you watch a video of the drought in China, Australia, Africa, South America, or the US, the scene will be the same: misery, ruined crop, and dying cattle.
The drought which started in November threatens over half the wheat crop in eight provinces – Hebei, Shanxi, Anhui, Jiangsu, Henan, Shandong, Shaanxi and Gansu.
Relief efforts are under way. The Chinese government has allocated 86.7 billion yuan (about $12.69 billion) to drought-hit areas. Authorities have also resorted to cloud-seeding, and some areas received a sprinkling of rain after clouds were hit with 2,392 rockets and 409 cannon shells loaded with chemicals. However, there is a limit to what can be done in the face of such widespread water shortage.
As I have previously written, China is facing hyperinflation, and this record drought will make things worse. China produces 18% of the world’s grain each year.
A) The Murray River stopped flowing at its terminal point, and its mouth has closed up.
For some reason, the debate over climate change is essentially over in Australia.
The United States
Augusta Region (Georgia, South Carolina, North Carolina)
La Niña likely to make matters worse
Brazil’s numbers for corn harvesting:
Harvested in 2008: 58.7 million tons
Horn of Africa
Other African nations suffering from drought in 2009 are: Malawi, Zambia, Swaziland, Somalia, Zimbabwe, Mozambique, Tunisia, Angola, and Ethiopia.
Middle East and Central Asia
Other Middle Eastern and Central Asian nations suffering from drought in 2009 are: The Palestinian Territories, Lebanon, Israel, Bangladesh, Myanmar, India, Tajikistan, Turkmenistan, Thailand, Nepal, Pakistan, Turkey, Kyrgyzstan, Uzbekistan, Cyprus, and Iran.
Lack of credit will worsen food shortage
Low commodity prices will worsen food shortage
The low prices at the end of 2008 discouraged the planting of new crops in 2009. In Kansas for example, farmers seeded nine million acres, the smallest planting for half a century. Wheat plantings this year are down about 4 million acres across the US and about 1.1 million acres in Canada. So even discounting drought related losses, the US, Canada, and other food producing nations are facing lower agricultural output in 2009.
Europe will not make up for the food shortfall
Stocks of foodstuff are dangerously low
2002-2005: 47.4 million tons
These inventory numbers are dangerously low, especially considering the horrifying possibility that China’s 60 million tons of grain reserves doesn’t actually exists.
Global food Catastrophe
The deflation debate should end now
In fact, agricultural commodities NEED to head higher and soon, to prevent even greater food shortages and famine. The price of wheat, corn, soybeans, etc must rise to a level which encourages the planting of every available acre with the best possible fertilizers. Otherwise, if food prices stay at their current levels, production will continue to fall, sentencing millions more to starvation.
Competitive currency appreciation
Instead of “competitive currency devaluations”, spiking food prices will likely cause competitive currency appreciation in 2009. Foreign exchange reserves exist for just this type of emergency. Central banks around the world will lower domestic food prices by either directly selling off their reserves to appreciate their currencies or by using them to purchase grain on the world market.
Appreciating a currency is the fastest way to control food inflation. A more valuable currency allows a nation to monopolize more global resources (ie: the overvalued dollar allows the US to consume 25% of the world’s oil despite having only 4% of the world’s population). If China were to selloff its US reserves, its enormous population would start sucking up the world’s food supply like the US has been doing with oil.
On the flip side, when a nation appreciates its currency and starts consuming more of the world’s resources, it leaves less for everyone else. So when china appreciates the yuan, food shortages worldwide will increase and prices everywhere else will jump upwards. As there is nothing that breeds social unrest like soaring food prices, nations around the world, from Russia, to the EU, to Saudi Arabia, to India, will sell off their foreign reserves to appreciate their currencies and reduce the cost of food imports. In response to this, China will sell even more of its reserves and so on. That is competitive currency appreciation.
When faced with competitive currency appreciation, you do NOT want to be the world’s reserve currency. The dollar is likely to do very poorly as central banks liquidate trillions in US holdings to buy food and appreciate their currencies.
Posts Tagged ‘North America’
Posted in Oh Crap!, tagged africa, Asia, australia, canada, china, Drought, europe, Extreme, Food Prices, Food Production, Food Shortage, global warming, Ice Caps, La Nina, North America, Poverty, South America, US, Water Shortage on February 9, 2009 | 2 Comments »
Posted in Crazy News, Crazy People, Crazy Places, Oh Crap!, tagged agreement, army, canada, Congress, cover-ups, defense, dictatorship, domestic, foreign, merger, North America, premeditated, secret, secrets, terrorists, US on January 28, 2009 | Leave a Comment »
WTF??!!! Pay close attention to the last paragraph, and then tell me that Bush was not praying for another terrorist attack to keep him in power! I feel so comforted in knowing that the U.S. government is secretly creating shit that we do not need, at taxpayer expense, of course!
North American Army created without OK by Congress
U.S., Canada military ink deal to fight domestic emergencies
Posted: February 24, 2008
1:45 pm Eastern
By Jerome R. Corsi
© 2009 WorldNetDaily
In a ceremony that received virtually no attention in the American media, the United States and Canada signed a military agreement Feb. 14 allowing the armed forces from one nation to support the armed forces of the other nation during a domestic civil emergency, even one that does not involve a cross-border crisis.
U.S. Air Force Gen. Gene Renuart, commander of USNORTHCOM, signs agreement Feb. 14, 2008, with Canadian Air Force Lt. Gen. Marc Dumais, commander of Canada Command (USNORTHCOM photo)
The agreement, defined as a Civil Assistance Plan, was not submitted to Congress for approval, nor did Congress pass any law or treaty specifically authorizing this military agreement to combine the operations of the armed forces of the United States and Canada in the event of a wide range of domestic civil disturbances ranging from violent storms, to health epidemics, to civil riots or terrorist attacks.
In Canada, the agreement paving the way for the militaries of the U.S. and Canada to cross each other’s borders to fight domestic emergencies was not announced either by the Harper government or the Canadian military, prompting sharp protest.
“It’s kind of a trend when it comes to issues of Canada-U.S. relations and contentious issues like military integration,” Stuart Trew, a researcher with the Council of Canadians told the Canwest News Service. “We see that this government is reluctant to disclose information to Canadians that is readily available on American and Mexican websites.”
The military Civil Assistance Plan can be seen as a further incremental step being taken toward creating a North American armed forces available to be deployed in domestic North American emergency situations.
The agreement was signed at U.S. Army North headquarters, Fort Sam Houston, Texas, by U.S. Air Force Gen. Gene Renuart, commander of NORAD and U.S. Northern Command, or USNORTHCOM, and by Canadian Air Force Lt. Gen. Marc Dumais, commander of Canada Command.
“This document is a unique, bilateral military plan to align our respective national military plans to respond quickly to the other nation’s requests for military support of civil authorities,” Renuart said in a statement published on the USNORTHCOM website.
“In discussing the new bilateral Civil Assistance Plan established by USNORTHCOM and Canada Command, Renuart stressed, “Unity of effort during bilateral support for civil support operations such as floods, forest fires, hurricanes, earthquakes and effects of a terrorist attack, in order to save lives, prevent human suffering an mitigate damage to property, is of the highest importance, and we need to be able to have forces that are flexible and adaptive to support rapid decision-making in a collaborative environment.”
Lt. Gen. Dumais seconded Renuart’s sentiments, stating, “The signing of this plan is an important symbol of the already strong working relationship between Canada Command and U.S. Northern Command.”
“Our commands were created by our respective governments to respond to the defense and security challenges of the twenty-first century,” he stressed, “and we both realize that these and other challenges are best met through cooperation between friends.”
The statement on the USNORTHCOM website emphasized the plan recognizes the role of each nation’s lead federal agency for emergency preparedness, which in the United States is the Department of Homeland Security and in Canada is Public Safety Canada.
The statement then noted the newly signed plan was designed to facilitate the military-to-military support of civil authorities once government authorities have agreed on an appropriate response.
As WND has previously reported, U.S. Northern Command was established on Oct. 1, 2002, as a military command tasked with anticipating and conducting homeland defense and civil support operations where U.S. armed forces are used in domestic emergencies.
Similarly, Canada Command was established on Feb. 1, 2006, to focus on domestic operations and offer a single point of contact for all domestic and continental defense and securities partners.
In Nov. 2007, WND published a six-part exclusive series, detailing WND’s on-site presence during the NORAD-USNORTHCOM Vigilant Shield 2008, an exercise which involved Canada Command as a participant.
In an exclusive interview with WND during Vigilant Shield 2008, Gen. Renuart affirmed USNORTHCOM would deploy U.S. troops on U.S. soil should the president declare a domestic emergency in which the Department of Defense ordered USNORTHCOM involvement.
In May 2007, WND reported President Bush, on his own authority, signed National Security Presidential Directive 51, also known as Homeland Security Presidential Directive 20, authorizing the president to declare a national emergency and take over all functions of federal, state, local, territorial and tribal governments, without necessarily obtaining the approval of Congress to do so.