Regardless of what we eat, we're actually eating oil.
Anyone who buys their own groceries (as opposed to having a full-time cook handle such mundane chores) knows that the cost of basic foods keeps rising, despite the official claims that inflation is essentially near-zero.
Common-sense causes include severe weather and droughts than reduce crop yields, rising demand from the increasingly wealthy global middle class and money printing, which devalues the purchasing power of income.
While these factors undoubtedly influence the cost of food, it turns out that food moves in virtual lockstep with the one master commodity in an industrialized global economy: oil. Courtesy of our friends at Market Daily Briefing [8], here is a chart of a basket of basic foodstuffs and Brent Crude Oil:
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Inflation near zero... Hummm some of us remember when food and petroleum were included in the inflation rate calculation. Put them back into the calculation and where is the inflation rate, ain't near zero. If King Barry would open up the oil reserves, he could actually begin repairing the damage he has done to the economy and anything that moves would become cheaper. Drill Baby Drill,
ReplyDelete1. It's all grown overseas, and nobody wants our dollars (monetary inflation from quantitative easing)
ReplyDelete2. A few key players have seized the oil markets - need oil to transport the food from far away.
3. Refineries regulated out of existence - can't make enough gas to have low prices.
4. Consolidation of the meat packing industry, leading to lower prices for cattle and higher prices for beef.
5. Regulations on the meat industry - How is it beef is at record highs, but cattle ranchers can't keep the farm operating? They should be adding to their herds and flush with cash!
6. Regulations on farming - lack of water rights, high taxes on a farmer's land, etc.
Food is still in the inflation index. But they often trade down to cheaper alternatives. IE, instead of steak, they sub hamburger. You're still eating cows, so it's OK. Soon they'll go to ground turkey - it's still meat protein!
ReplyDeleteInflation is high because 1-the rich have 2 trillion dollars in overseas banks so that money is not working here,tax dollars still going to banks here enriching themselves on us.
ReplyDeleteOn purpose; thats why. free to entitlement holders; expensive for us. Vote dem.
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