Remember hearing something about a drought across parts of the US in 2011? If you buy anything with peanuts, you’re about to see the effects of a low harvest caused by the drought. Get ready for some high food prices, they are on their way.
Normally I do not subscribe to the doom-and-gloom predictions, but I am seeing it first hand.
Farmers here in Texas are losing crops, and having to sell their cattle because grass is not growing. Texas and Louisiana agreed to allow wide loads of hay to be transported between the 2 states. Here in Jasper County Texas, I see trailers loaded down with rolls of hay going through the city on a regular basis. Importing hay from Louisiana is one of the few options cattlemen have right now.
Because of farmers selling off their cattle herds, the price of beef might be artificially low right now. If the sale of cattle starts to slow down, we might see the price of beef jump.
Young and old trees are turning brown and dying. Back in February of 2011 my kids and I planted some oak trees at the Bug Out Location. Due to the lack of rain fall, and not being able to make regular trips to the camp to water the trees, the leaves have turned brown and the baby trees might die.
According to USDA figures, in 2010 raw peanuts cost about $450 a ton, currently prices stand at $1,150 a ton. Here is a chart from the USDA showing a steady increase in price over the past year
Rumors are going around that peanut prices are supposed to go up somewhere in the 50% range by the end of October. Even if prices do not go up 50%, and you buy a bunch of peanut butter, you can use the use the stuff to make peanut cookies over the holidays.
We are not talking about the drought just affecting Texas. States all across the south, all the way into Oklahoma are being affected.
To make matters worse, weathermen are predicting this drought could last another 10 years. I hope the predictions are wrong, but to be on the safe side, we have to plan for the worst.
Most US citizens are already pissed off about the bank bailouts, president obama acting like a sock-puppet, I wonder how much more the public is going to take before riots start to happen? People can only be pushed “so” far before there is a breaking out. I suspect OccupyWallStreet is only the start of the protest. If food prices continue to go up faster then the rate of inflation, something will have to give.
Another thing I suspect, the younger generation will take the lead in the revolt – these are the people who have been lied to the most. Our younger generation has been told if you go to school, build up massive student debt, you will be able to find a job, pay off the debt, buy a home, get married, and raise a family.
But now the truth is coming out. Our job base has been moved offshore and most of the people leaving college have no hope on getting a job. The American dream has been packaged and shipped to china, curiosity of the federal government.
While the federal government bails out the banks, the everyday people have been left with a tax debt that can never be paid back. Sooner or later the federal government is going to have to have a major policy change. We have money to spend overseas, but we do not have money to feed the hungry, our house the homeless. There is something wrong with a nation that would rather feed children in another country, then to feed our own children.
Lets say that this drought come back next year, and the federal government has to buy grain or corn from another country, what is going to happen to our debt then? When the government is broke, how are we going to pay our bills when something comes up? I guess the federal reserve will fire up the printing presses and print off a few billion dollars to buy grain with.
“Something” sooner or later is going to give.
A worse case situation that I see, is for there to be food shortages and the US federal government being unable to buy food from other countries. The US has been called the breadbasket of the world.
Very few people living in the US have seen a real food shortage – unless you have traveled to other countries. But lets say that the average person is someone who went to high school, and either went into the work force or went to college. For most of us, we are used to going to a fast food place and ordering a cheese burger.
How would most people react if the grocery store shelves were empty? Would they act like a spoiled child and start throwing a fit? Instead of throwing themselves on the floor kicking and screaming, adults would probably resort to violence.
Violence is the last resort of the weak minded. Those that have not seen the writing on the wall and prepared their families, will probably resort to violence first.
The writing is on the wall:
- Unemployment is up
- People are protesting in the streets
- Prices of essential goods are going up – food and fuel