Food Price Riots Popping Up Around The World

[ribozyme]

I think I would short commodities now.

I found this lately:

Perhaps the best proof of all that there’s a speculative bubble in commodities that may be about to burst: ConAgra, the 147 year-old food professor, last month sold its commodity trading division to a hedge fund for $2.1 billion. Cash.

Indeed, the only people who don’t believe speculation is driving a commodities bubble are the big commodity traders and the commodities exchanges, which are profiting handsomely from the soaring prices and trading volumes, and the regulators at the Commodities Futures Trading Commission, whose economists cannot seem to find statistical evidence that financial investors have had much of an impact on commodity prices.

To its credit, the commission last week decided to hold off on plans to raise the limits on how much any one fund can speculate on any commodity. Ostensibly this is out of concern, in the words of the acting chairman, “that additional speculative pressures not exacerbate the anomalies we are experiencing in these markets.”

washingtonpost.com/wp-dyn/content/article/2008/04/29/AR2008042902880_pf.html

 

[drpmjhess]

I think I would short commodities now.
I found this lately:
washingtonpost.com/wp-dyn/content/article/2008/04/29/AR2008042902880_pf.html

Ribozyme, as food prices soar, we continue to hear hand-wringing laments that the economy is not growing. At some point we well reach a steady-state economy and population, neither growing nor shrinking. Perhaps we are closing in on that now.

 

[Al_Masetti]

Ribozyme, as food prices soar, we continue to hear hand-wringing laments that the economy is not growing. At some point we well reach a steady-state economy and population, neither growing nor shrinking. Perhaps we are closing in on that now.

I can feel it … it’s closing in on me even while we speak.

Oh … nooooooooooo.

This following statements have not been cleared with one of those internet clearing places. Snoopey or whoever.

In mid-1945, some whiz-bang experts declared that the atomic bomb was impossible.

AND about a hundred years ago, somebody tried to close the patent office because everything had already been invented.

Come-on youse guys, lighten up. The Holy Spirit has not yet run out of ideas with which to inspire us … with which to transfuse us.

[Remember … “transparent aluminum”.]

 

[vern_humphrey]

I can feel it … it’s closing in on me even while we speak.

Oh … nooooooooooo.

This following statements have not been cleared with one of those internet clearing places. Snoopey or whoever.

In mid-1945, some whiz-bang experts declared that the atomic bomb was impossible.

AND about a hundred years ago, somebody tried to close the patent office because everything had already been invented.

Come-on youse guys, lighten up. The Holy Spirit has not yet run out of ideas with which to inspire us … with which to transfuse us.

[Remember … “transparent aluminum”.]

I said it to Wilbur and I said it to Orville, and I say it to you: “That thing will never fly!”

Become a member of the Man Will Never Fly Society (motto: Birds fly, men drink.)

 

[Al_Masetti]

This is the closest thing to a current thread on economics.

So, here is my guaranteed thread killer. [Ironic comment … sorry about that.]

nypost.com/seven/04112008/postopinion/opedcolumnists/economic_hysteria_106074.htm

I tried to access Alan Reynolds via www.cato.org but some gremlin has succeeded in “throwing me off” the last 20 times I tried it.

Anyway, the title of the article is “Economic Hysteria: media overhype mortgage-mess fears”.

And the world economy seems to have picked up on some of the hype.

Anyway, it’s a good article. Provides a sense of perspective.

 

[vern_humphrey]

This is the closest thing to a current thread on economics.

So, here is my guaranteed thread killer. [Ironic comment … sorry about that.]

nypost.com/seven/04112008/postopinion/opedcolumnists/economic_hysteria_106074.htm

I tried to access Alan Reynolds via www.cato.org but some gremlin has succeeded in “throwing me off” the last 20 times I tried it.

Anyway, the title of the article is “Economic Hysteria: media overhype mortgage-mess fears”.

An article in last Sunday’s Arkansas Democrat -Gazette said that less than 1% of homes in Arkansas has sub-prime loans – and 2/3s of all homes in Arkansas have no mortgage at all.

 

[peregrinus_WA]

This is the closest thing to a current thread on economics.

So, here is my guaranteed thread killer. [Ironic comment … sorry about that.]

nypost.com/seven/04112008/postopinion/opedcolumnists/economic_hysteria_106074.htm

I tried to access Alan Reynolds via www.cato.org but some gremlin has succeeded in “throwing me off” the last 20 times I tried it.

Anyway, the title of the article is “Economic Hysteria: media overhype mortgage-mess fears”.

And the world economy seems to have picked up on some of the hype.

Anyway, it’s a good article. Provides a sense of perspective.

I have not said that here, but I have been saying that for months about the mortgage “crisis”. The Secular Relativists in the MSM have developed a myopia due to their absolute hatred of Bush and anyone/anything that does not fit their agenda. They are over-hyping the “crisis” to make their perceived enemies look bad.

The same can be said about food. It is speculators that are now driving prices. There is signs that that is also reaching a point where it will crash. The same goes for oil (although to a lesser extent). However, who does the MSM blame? Bush and anyone who they do not like.

I made the point about the speculators in: Speculation in the Commodity Markets Good or Bad?

 

[vern_humphrey]

An article in last Sunday’s Arkansas Democrat -Gazette said that less than 1% of homes in Arkansas have sub-prime loans – and 2/3s of all homes in Arkansas have no mortgage at all.

 

[peregrinus_WA]

Campaign to vilify ethanol revealed
By Kris Bevill
*Web exclusive posted May 16, 2008 at 1:19 a.m. CST *

The “food versus fuel” debate being waged in the United States has been nothing more than a cleverly planned public relations campaign. A request for a public relations proposal put forth by the Grocery Manufacturers Association and the media campaign response by the Glover Park Group prove that there has been a concerted effort to attack the ethanol industry. Both documents were recently made public by long-time ethanol advocate, Sen. Chuck Grassley, R-Iowa.

The GMA represents more than 300 food, beverage and consumer household goods companies in the United States. The association released a request for a public relations campaign to combat the Energy Independence and Security Act of 2007. The request states: “GMA has concluded that rising food prices, global shortages of basic commodities, and new studies on the environmental impacts of corn ethanol create a window to change perceptions about the benefits of bio-fuels and the mandate and, ultimately, to build a groundswell in support of freezing or reversing some provisions of the 2007 Energy Bill…”

Full Story

 

[Doug50]

ethanol is a net energy loser
amlibpub.com/liberty_blog/2007/01/ethanol-is-net-energy-loser.html

and corn based ethanol is a waste of water
Bill Reinert, Toyota’s alternative fuel manger on ethanol
video.google.com/videoplay?docid=-2201199802681775303

 

[peregrinus_WA]

ethanol is a net energy loser
amlibpub.com/liberty_blog/2007/01/ethanol-is-net-energy-loser.html

That is not always so. Switch grass, from things I have read, yield over 500% based on the energy used. And, as technologies improve, expect higher yields.

and corn based ethanol is a waste of water
Bill Reinert, Toyota’s alternative fuel manger on ethanol
video.google.com/videoplay?docid=-2201199802681775303

I have said it before, I ain’t a fan of food based biofuels. There are other biomass that is better suited for biofuels.

I love it how people’s myopia is so fixated on corn. It is not the answer and I have said so.

More and more plants are being built that are not “food” based biomass. In fact, some plants are being weaned away from “food” based biomass.

The jist of the story I posted was that there is a concerted misinformation campaign on biofuels.

 

[Filius99993]

ethanol is a net energy loser
amlibpub.com/liberty_blog/2007/01/ethanol-is-net-energy-loser.html

and corn based ethanol is a waste of water
Bill Reinert, Toyota’s alternative fuel manger on ethanol
video.google.com/videoplay?docid=-2201199802681775303

Plus, ethanol makes Hugo Chavez mad at us!

 

[harveyc]

The most seemingly objective data I’ve seen shows that corn ethanol produces one gallon of equivalent fuel for each 7/10 gallon used. In addition, the byproduct, distillers grain, is still used in animal feed which is then turned into meat, milk, etc.

One computation I saw which argued against corn ethanol factored into the solar energy that was used for corn production. That’s ridiculous. We are not going to replace our corn farmland with solar panels. That energy would otherwise be lost anyways.

 

[peregrinus_WA]

The most seemingly objective data I’ve seen shows that corn ethanol produces one gallon of equivalent fuel for each 7/10 gallon used. In addition, the byproduct, distillers grain, is still used in animal feed which is then turned into meat, milk, etc.

One computation I saw which argued against corn ethanol factored into the solar energy that was used for corn production. That’s ridiculous. We are not going to replace our corn farmland with solar panels. That energy would otherwise be lost anyways.

And celluosic biomass like switchgrass has been estimated to be 5 times that. And it can grow on land not suitable for farming. Combine that with food processing waste, paper product waste, and municipal waste (which is everywhere) you have abundant sources of biomass that will not disrupt the food supply.

 

[harveyc]

And celluosic biomass like switchgrass has been estimated to be 5 times that. And it can grow on land not suitable for farming. Combine that with food processing waste, paper product waste, and municipal waste (which is everywhere) you have abundant sources of biomass that will not disrupt the food supply.

It is frequently said that the technology developed for corn ethanol will be what will make it possible to use switchgrass, etc.

Also, much of the current problems with food supplies are due to droughts in Australia and Europe and ethanol is the scape goat.

Much of the public would seemingly prefer that food costs be below the cost of farmers to produce it which would help ensure reduced food supplies.

As mentioned in another thread, most of the meat we consume in the united states is grain feed and little is being said about that inefficient conversion.

 

[vern_humphrey]

Much of the public would seemingly prefer that food costs be below the cost of farmers to produce it which would help ensure reduced food supplies.

These are the same people who say raising taxes on the oil industry will result in cheaper and more plentiful gasoline.

 

[Filius99993]

These are the same people who say raising taxes on the oil industry will result in cheaper and more plentiful gasoline.

These people obviously AREN’T farmers. They might get a tax break on gas, but the net outcome in farming is significantly unprofitable. Farmers do what they do because they love doing it, but when driven too far, they’ll just leave. That’s what has happened in my family.

 

[Doug50]

These people obviously AREN’T farmers. They might get a tax break on gas, but the net outcome in farming is significantly unprofitable. Farmers do what they do because they love doing it, but when driven too far, they’ll just leave. That’s what has happened in my family.

that’s what happend to me so today I just run cattle.
5/1 ratios of water to ethanol are for plant processes and don’t include any irrigation water used in growing corn swhydro.arizona.edu/archive/V6_N5/feature4.pdf
the big problem with ethanol to petorleum is the EROEI (video.google.com/videoplay?docid=-8980485670494666459)

At 86 million barrels of oil per day produced/consumed by the world here’s what that looks like: oildepletiondebate.blogspot.com/2008/02/at-1000-barrels-of-oil-per-second.html If all Olympic pool equivalents of oil used in one year were lined up end to end, the pool would be 82 feet wide x 6.5 feet deep x 63,488 miles long."

60% of that volume goes to transportation…and ethanol is going to replace that volume?

 

[Ridgerunner]

that’s what happend to me so today I just run cattle.

What state are you in Doug? Just curious. In my state (Mo) there are incredibly rich areas (Mo, Miss valleys, No. Mo, W. Mo) where every square inch is still farmed, and other areas (pretty much the rest of it) where farming stopped many years ago and converted to cattle or timber. I would just be interested to know.

To what you said, and with which I would agree, I might add that the economics of agriculture are nearly impossible if you include the cost of land.

 

[vern_humphrey]

These people obviously AREN’T farmers. They might get a tax break on gas, but the net outcome in farming is significantly unprofitable. Farmers do what they do because they love doing it, but when driven too far, they’ll just leave. That’s what has happened in my family.

And raising taxes on the oil industry will have the same effect on them. The “windfall profits tax” of the '70s virtually shut off domestic oil – there are tens of thousands of small wells that used to be profitable, but which are capped off.

It seems we have people in Congress who think oil companies are a different species – that they have to produce gasoline for us, no matter what. With that warped view, Congress will do to the American oil industry what it has already done to the American shipping industry.