There is a saying that states that “every society is only three meals away from revolution”, and it is easy to believe. If food is unobtainable, the fear of starvation will drive people to extreme measures.
A few years ago, Sir John Beddington, the UK government’s chief scientific advisor stated that with the world’s population growing, food supplies diminishing, and water supplies becoming more scarce, all of these factors would combine to form a ‘perfect storm’ in 2030 resulting in food shortages and rioting. However, the New England Complex Systems Institute believes he is way too optimistic with his timing. In fact, the complexity theorists think that if we don’t reverse the current trend in food prices, we’ve got until August 2013 before social unrest sweeps the planet.
The team from New England including Marco Lagi say they believe that a single factor will trigger riots around the world within the next 11 months – the price of food. Lagi and his team say that once food prices reach a certain point, social unrest will break out in several countries, especially in poorer parts of the world.
Lagi and his team don’t think that high food prices will solely lead to riots, but will be responsible for creating the conditions in which social unrest can flourish. ]
Before the holidays last year (Christmas 2011) I was concerned with the food supply & food inflation based upon data that I had received regarding forecasted weather conditions for 2012, the ethanol insanity of burning food for energy, & the obvious dollar devaluation which is the stated goal of the federal reserves current mandate. I was rebuffed by practically everyone I mentioned this concern to & dismissed as a fear monger for connecting these dots, I guess I wasn’t that far off the mark after all. These three forces combined are the societal breakdown trifecta & will surely prove successful in bringing mankind to the brink of total breakdown in the right environment, and let me assure you the conditions are ripe for the picking currently. So what happens when a considerable portion of the domestically produced crop of food, which happens to be corn, & corn is involved in the production of just about EVERYTHING in America, is dedicated to fuel standards all while the total domestic food supply is being handicapped by natural phenomenon concurrently while monetary inflation is rendering the purchasing power of the masses to be a fraction of what it was the year before? The answer unfortunately is a society on the brink of massive upheaval & that surely wont bode well for the recovery that we so desperately need.
Using history as our guide, it is clear that when the global commerce environment is complicated by domestic economic crisis the first thing to be tossed out the window is exporting what is most needed at home. The interest in honoring international trade agreements is shelved & the nationalistic behavior comes to the forefront as saving the homeland is now front & center over exporting food supplies to the world. It only makes sense this would be the case as the survival of the nation is obviously more important than honoring export contracts. If you doubt that this outcome would be the decision made in this scenario remember that Russia made the decision to halt wheat exports last year when they were struggling with a massive drought that was complicated by out of control wildfires that damaged their wheat crops. While a logical move, it inevitably creates strife amongst those international trading partners who have in the name of globalism been conned into retiring the menial task of farming in order to create a service sector economy to progress forward with advancement of society & progression of wealth accumulation thus making them dependent on the food imports. This ironically is a fallacy that has been sold to none other than America & Ross Perot himself warned of the consequences of globalism when he rallied against the likes of NAFTA & GAT during his presidential bid. But of course he was laughed off the stage & faded into obscurity forever more to be known as a foolish man thanks to the medias collective effort to brand him as a laughable fool with conspiratorial views when it comes to progress in the world.
This brings us to the current scenario. We have almost half of the US population dependent in one way or another on the govt. to subsidize their incomes that are either a fraction of what they were as they are underemployed or nonexistent as they are unemployed thanks to this inflationary ‘recovery’
So how do you personally combat these issues since you are neither in charge of monetary policy, in control of the weather, nor are you a farmer you ask? There is a simple solution that can go a long way to offsetting these issues you have no control over while allowing you to absorb the inflationary future that is knocking at the door. The solution is to establish an inflation hedge that will allow you to absorb the inflation that is gaining momentum & soon will overrun the shenanigans the banks have thus far successfully used to keep that threat hidden. The solution is a precious metals hedge in physical gold & silver bullion as they will continue to rise in tandem with your food costs. Soon enough the realization will hit home that the only benefactors to the FEDs “enough inflation will force savers back into Wall Streets hands” economic policy are the wealthiest top 10% of the population & therefor it would be more logical to adopt a wealth preservation strategy over staying in that IRA or 401K that keeps getting whacked over & over. Things are going to get very humbling for many Americans as they will be unwilling to do what is required to maintain their lives as it will require a more austere lifestyle & we have been taught a humble lifestyle is evidence of failure in life. I’m afraid 2012 may very well be the end of the century long trend of the “Retail Christmas” & things will change from buying everything with credit cards as gifts & instead go back to making a gift in the wood shop for mom. This will be hard for most but for those who see the last 100 years can not be recreated as they were never grounded in reality but instead propped up by a credit bubble illusion. For this reason those who can see the violent shift ahead & make moves to protect the wealth they currently have now in gold & silver bullion they will not only be able to absorb the inflation that would otherwise pushed food out of their budgets but also set them up for an explosive return when the stock market becomes exceptionally volatile by year end. Remember that it is a far better strategy to PREPARE your portfolio than to attempt to REPAIR your portfolio once the damage has begun. This global currency war recession is more likely to morph into a hyperinflationary depression than to turn into a recovery in my opinion, unfortunately. Tick, tock.