April 13, 2008

HousingPANIC Stupid Question of the Day


Do you thing HousingPANIC and FoodPANIC are related?

If so, go ahead, connect the dots

If not, why not?

23 comments:

Andrew from Russia said...

Have you seen this? Thanks to IP innovations, crop savers can be screwed now as efficiently as cash savers!

http://tinyurl.com/6nmuzt

You know, it's Intellectual Property™. The American thing. The WTO-mandated thing. The same thing that is said to save composers, programmers and inventors from starvation can be now used to induce famine! Creativity must be rewarded, right?

Anonymous said...

it is a stupid question... it's related to Peak Oil.

Oil is food - period.

Anonymous said...

Governments in Haiti, Egypt and the Philippines are among those already facing social unrest because of food prices and shortages. If the price increases continue, Strauss-Kahn said, "Thousands, hundreds of thousands of people will be starving. Children will be suffering from malnutrition, with consequences for all their lives."

The development group Oxfam, a frequent IMF critic, said rich countries are largely responsible for the food crisis because they have been cutting aid to developing countries and encouraging biofuel production, which the IMF says is responsible for almost half the increase in the demand for food crops.

"Rich countries demand for biofuel is driving up food prices and is a big part of the problem," said Elizabeth Stuart, an Oxfam policy adviser. "Meanwhile, by cutting aid levels, they are doing precious little to be part of the solution."


http://news.yahoo.com/s/ap/20080413/ap_on_bi_ge/finance_meetings

DOT CONNECTION said...

. HOUSING CRASHES BECAUSE LAST GREATER FOOL HAS BEEN FOUND AND USED...

. MONEY MOVES OUT OF HOUSING...

. MONEY MOVES INTO COMMODITIES...

. FOOD SUPPLIES DIVERTED TO CREATE FUEL (ETHANOL ETC)...

. OIL SPIKES...

. WALL STREET CROOKS SEIZE ANY ONE DAY, RANDOM NEWS ITEMS TO RAISE OIL PRICES (NIGERIANS RESTLESS IN INTERNET CAFE'S ETC)...

. HIGH OIL PRICES BEGIN TO TRICKLE INTO FOOD SUPPLY CHAIN...

. BERNANKE SAYS HIGH HOME, OIL, AND FOOD PRICES AREN'T CONSIDERED INFLATION...

. NY TIMES DISCOVERS RICE PANIC...

. FAUX NEWS DENIES AND CONTINUES TO COVER BRITNEY...

THERE YA GO KEEFER, DOTS CONNECTED...

DOPES!!!

Anonymous said...

RE: andrew from russia
Wow! F**kin' scary. Proof of why American's and Lawyers are hated around the world. Another example of "nation building" I suppose.

lawyersareevil

happy homeowner in the stix said...

Nope, it's a revolution shortage in some of those countries, and an overpopulation problem in others.

pentupdemand said...

I'd like to see some more dot-connecting.

I can see that biofuels are pushing up the price of corn, and possibly using up land that would otherwise be used for food production (or rainforests - not food, but still important).

I can see that severe droughts (which may one day be widely accepted as a symptom of global warming) are reducing the amount of food produced in countries around the world, causing exports to fall.

I can see that the US "strong dollar" policy is causing inflation for countries that have their currencies pegged to the dollar.

I can see that the US "strong dollar" policy is a desperate response to the financial havoc wreaked by the housing bubble.

I can see that there may be some speculation pushing up the futures prices of the agricultural commodities - Jim Rogers must be making a killing (no pun intended).

The thing I don't really understand is what is causing the shortages - it seems very sudden. Is it a combination of factors - supply, demand, inflation?

I wonder if food panic gives some inkling of what peak oil will look like - the supermarket shelves in Hong Kong were reportedly stripped of rice a week ago.

Reality said...

Keith,

The two are indeed connected. Housing Panic causes FED to print up tidal wave of money. All that money drives up commodity prices. With stock market, bond market and real estate market all going nowhere, the only outlet for parking money left is commodities; that worldwide capital preservation effort in the face of run-away fiat money printing adds fuel to the fire. Both Germany and Russia (neither were crummy third world countries) had episodes where they used cigarette and vodka as currencies when their paper money hyperinflated into nothingness. People around the world are starting to hoard food instead of hoarding cash for their savings. Government effort to bust "hoarders" will only make it worse as all the anti-hoarding law enforcers will have to be paid with addtional printed money! Thereby driving the black market price for food even higher when the law enforcers spend their money.

Jason said...

No. The housing panic is related to the creation of cheap money. The food panic is related to the disappearance of cheap oil.

Shakster said...

YES,see next thread.

Anonymous said...

Not sure,
But.

Housing Bubble is beginning to ‘deflate.’

Food bubble is now beginning to ‘inflate.’

Lots of money still to be made in the food bubble for the next several years

Remember how we thought the housing bubble was unsustainable in 03, and kept getting bigger for 3 more years.

The food and water bubble is still in its infancy. This one will be huge.

There is soo much money to be made!

Miley said...

Anon: 11:58 am,

Can you please explain to us HPers what exactly is holding Haiti, Egypt and the Philippines back from being “rich countries” ?

Anonymous said...

Of course they are! All that big money created during the housing boom is sitting on the sidelines scared shitless and looking for a hedge. As that money becomes more afraid of inflation and fiat, it will flow into hard assets. Just backed up the truck (litterally) on 400lbs of grains and beans. Putting a shack out back for the stockpile of gas cans and ammo. Seriously.

wc said...

Both were caused by speculation and greed in either real estate or commodities - most people just want money for nothing

Reality said...

What "Peak Oil"? Gasoline at the pump is still about 25-cents a gallon, if you have the right kind of 25-cent coin: the pre-1965 90% US silver coin (its silver content is worth about $3.20 today). In terms of gold coins, a barrel of oil today is about 1/8 the value of a 1932 $20 gold coin! In other words, oil today would be about $2.50 a barrel in 1932 gold coin dollars. Do we have PeakSilver or PeakGold on our hand, and pending precious metal exhaustion? Of course not, almost all the gold ever dug up is still with us today; gold doesn't even have much industrial use. Yet, the "useless" metal has gone up just as much as oil and food. The sad reality is that our unit of count has been drasticly debased; the inter-relation between real goods has changed much.

BTW, a 24lb sack of Gold Medal flour in 1932 was $0.63 cents, or roughly 3.15% the face value of the $20 gold coin then in circulation. That translates to about $28 based on today's price of gold. I paid $15 for a 50lb sack of Gold Medal flour a few months ago when I was stocking up in anticipation of inflation. The stores have been out of the 50lb bags of bleached flour (the least expensive kind in retail) for the last couple months. When I went back a couple weeks ago, the only large bag flour available was the high-gluten type at double the price, so I paid $15 for a 25lb King Arthur. That's still way below the 1932 price for the cheaper kind of four, in terms of gold! Like I said, the food prices are just catching up!

Foreign food aid? That's just an excuse for getting rid off the food that the government purchased through farm subsidy programs, along with school lunch programs and food stamps. With food prices going up, farmers won't be selling to the government at the fixed purchase prices, so there won't be government food available for aid, foreign or domestic.

Anonymous said...

Gold will be zip, a loaf of bread will be a days wages. Just wait till the media find out that all the cash that could be printed for a hundred years can't balance the debt. It will all be on computers...Get ready. Bad times, one world leader..you can read the rest in the Bible.

mairca izda debol said...

The food shortage is due to overbreeding. It's a good thing that we have tons of farmland and freshwater. You can't eat and drink oil. Maybe this will get them to stop breeding like cockroaches.

Anonymous said...

Well, banksters(IMF, central banks, WAMU, citi...) are the key players in both dramas. People with nothing better to do than to take out Iceland aren't going to stop at food and water.

resisting husband said...

Lawyers are evil?

Why is it that everybody hates lwayers? (until they need one for themselves of course, but that different)

Anonymous said...

Miley said...

Can you please explain to us HPers what exactly is holding Haiti, Egypt and the Philippines back from being “rich countries”?

There isn't much of a global market for dirt cookies, and the woman in this picture doesn't look up to the job of Director of Marketing for Haiti does she? She may clean up well though, get her some Bare Minerals and a suit from Macy's.

http://tinyurl.com/5m39j6

Woo hoo commodities are the next bubble. Hurry hurry the commodities train is leaving the station. Lets get rich!!!!! Corn, soy and wheat are a definite BUY. Erin Brunette says so.

There is soo much money to be made!
Let's run up the price of food the same way we ran up the price of houses!!!!!

Andrew where the hell are you?

JaneZ

Lost Cause said...

The flood of cash from the Fed has gone straight into commodities speculation. That has set the price of food.

Frankly, the talk about biofuels seems like a diversion. It is the same nonsense as blaming enviormental rules for high fuel prices.

Refuse to buy overpriced said...

Phoney wealth created in stock bubble, causes house bubble, then commodity bubble.

Phoney wealth must be destroyed before they get any clever ideas about water. I'm glad I live in a state where it rains!

Anonymous said...

"Lawyers are evil?
Why is it that everybody hates lwayers? (until they need one for themselves of course, but that different)"

But they need lawyers because of other people's vicious greedy lawyers. So the solution is to get rid of ALL the lawyers.