Be Prepared – Global Food Shortages

So here we are once again. The economy is in a shambles and we have been in economic recession for at least the last four months. Our gold and silver “Portfolio insurance” protection is just beginning to pay off as the general equities and bond markets slide off into the abyss. Now we can begin to pat ourselves on the back for having gotten prepared over the last few years with our nonperishable food and basic necessity storage plans. This too is just beginning to pay off as our “Survival Insurance” investment. This was of course all too predictable but we here saw this coming and took action.

We already know about weak economy and the good fortune we have to hold precious metals as insurance, but now we are just learning that a new wave of disaster is about to strike and for Americans living in the “land of Plenty” this will come as a culture shock. Not since the Great Depression have Americans had to think the unthinkable. Food prices are going through the roof and at the very least we have mitigated that burden by being prepared. Hang on; it’s going to get worse.

These high food prices were predictable of course. We have had less and less arable land available for farming as we become more and more reliant on foreign food sources, with rising costs for farming such as seed and fertilizer which is made from petrochemicals. Yes, people complained about being dependent on foreign oil and yet said nothing about being reliant on foreign food because this is a new phenomenon for Americans. As insane as is, we traded our food supply for fuel. The new ethanol and biodiesel craze is to burn our food for fuel.

We are already experiencing shortages of grains and the higher prices are trickling down into other areas of the economy. For now meat prices are low as ranchers and farmers are culling herds of livestock because of high feed costs. This glut of meat will eventually turn to shortages as herds shrink. It will then likely take over three years minimum to rebuild herds to pre-recession levels. Meanwhile the preliminary tremors are being felt with shortages of corn, soybeans, wheat and rice. As the dollar weakens and shortages become more acute we will be ever more thankful for having taken the effort in these trying times to look out for ourselves and our families by adding “insurance” to our lives. On short – look out for number one because no one else will.

As always, get out of debt and stay out of debt, stash enough cash for several months household expenses, accumulate Gold and Silver “Portfolio Insurance” and keep a close eye on your storage of nonperishable food and basic necessities updating as necessary.

- Black Blade