Can A Food Deficit Be In Our Future?
Wednesday, April 30th, 2008 Subscribe To Our Feed
Is it possible for a rich nation such as America to face a possible food shortage in the future?
The answer to this is yes.
The NY Sun recently ran a story about the surfacing of some food shortages in some areas of the US. It appears that this may be a precursor of what is to come. How can this happen? The answer is in the fact that there are several things that contribute to shortages in whole.
For the most part there has always been enough food for everyone on the planet. This is beginning to change. The world is finding itself nearing maximum capacity in not only space but also in many commodities. Oil is a largely the primary commodity running short. The world; however, is not running out of oil anytime soon. It is true that the world has tapped most of the easily accessible oil fields. There is a lot more oil available, but it is becoming more and more expensive to extract shoving up the already inflated oil prices beyond reach. Gas prices will likely top $6.00 per gallon next year.
We are experiencing the same situation with the world’s mines. There is not a shortage of ore but we just can’t affordably get at it. Essentially this means that there is only a limited supply available at affordable prices. The higher the cost of supplies the fewer people that can afford it; this will of course increase the supplies at unaffordable prices.
Food is included in this variable. Despite the land available around the world there is only so much food available. Previously the US had a very strong currency; however, this is changing today. The value of the US dollar has been spiraling downward over the last few years. Other countries are now able to out bid the United States for the commodities we need. China is leading the world in outbidding for precious commodities.
This development will continue as the US continues to print more money resulting in a watering down effect. With the value of currency in the downward process, the US will find itself with less ability to be top bidder in obtaining its resources.
The above scenario regarding area food shortage is the predecessor of a number of very shocking changes America is heading for. As a country we have overspent and under managed our budget for decades and we are going to be faced with a grim reality.
Get Ready; Bush’s depression is going to be painful.
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