The Free Falling Dollar

The dollar has lost a third of its value since 2002. We’re heading for some nasty inflation. The easy credit that fueled the crazy housing market of the last few years has a part n this, as well as Americans being so credit crazed.

The question is, will we take the measures needed to prevent serious economic pain?

Head for? Checked food prices lately? Oh, right, the CPI doesn’t include food because it’s too volatile. Hasn’t stopped the price of food from keeping to a general upwards course over the course of time.

Last year around this time a Hormel pre-cooked entree was going for $5.49 at the Ralphs down the street. Now the same items are going for $7.99. This has no effect on the average monthly budget?

Posted by Alan Kellogg  on  11/07  at  05:40 PM

To be honest, I hadn’t noticed. But then, I avoid processed foods whenever possible.

Anyway, I’m not surprised.

Posted by  on  11/07  at  05:49 PM

The higher food prices are are result of the current trend of using food products to produce ethanol, particularly corn. Corn is used in the production of many food stuffs, particularly corn syrup as a sweetener. The syrup is used as a less expensive alternate to sugar.
Corn products are also used to feed cattle.
Another cause of higher food prices is the higher cost of energy. This is self explanatory.
Transportation costs alone include a current price of 3.59 a gallon for diesel here in the Chicago area.
A last point. In the current rush to produce ethanol from corn a lot of acreage previously devoted to different food stuffs, such as barley, are being converted to grow corn.
A terrible idea to use food products to make fuel.

Posted by  on  11/07  at  06:37 PM

I agree. And its getting a lot of criticism. The corn lobby is strong. They are making major bank on this. It really needs to be stopped. There are plenty of other things better for making biofuel, like switch grass, that are easy to grow and don’t effect food prices.

Posted by  on  11/07  at  06:45 PM

This is why I started buying precious metals paper in large quantities in 2003.  (Jim may remember discussing it with me). And why I moved a big chunk of my investments into the Prudent Bear fund last year.  Big problems are coming, and I’ve made my bet.

Posted by  on  11/07  at  06:58 PM
Page 1 of 1 pages

<< Back to main