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There are many alarm bells going off since the beginning of 2011 as food items and produce prices have been seeing prices increase as much as double. This is hurting many people in the hip pocket, especially those that have lost their job or have had their work cut back. But what is even more frightening is that this trend is likely to continue throughout 2011. Over the next several months, when you visit the grocery stores, you will see many items for sales but there is a high likelihood that you will not be able to afford it. Now that inflation has slowly crept in and the US dollar is devaluing, there is alot of cause for alarm. Many economies are clearly overheating and governments are putting measures in place to slow them down to fight inflationary pressure but it is not working. More than anything else, food inflation is a problem, In a recent study, 70 percent to 80 percent and sometimes more of a family's budget goes to food, Remember the old saying: 'hunger starves civilizations. some of these governments have been quite aggressive in their inflation fight. Nobody will be surprised when we see more (economic) volatility in Europe or even the US. A stronger slowdown in emerging markets than we currently expect would take everybody by surprise. Therefore its market impact would be much more violent. Specifically on the food situation you are going to see escalating food prices like you have never seen before. Not because there is a lack of food, even with the violent weather we have seen since the start of the year. That is not the problem. Wild weather normally
creates a problem around the world supply and demand issue. But it is not supply and demand that you should be worried about. The real problem is that the real value of the dollar is devaluing so quickly from the the bailouts and printing off of U.S. dollars by the American government. That is slowly killing off the real value of US dollars. The devaluing of the the U.S. dollar will have a dramatic effect on the pricing
of all sort of food and commodities. The smartest thing you can do right now is to go down to your local grocery or
produce store and stock up on 6 months supply of food. That is because you can
afford it now. In six months time, that could be an entire different story. In
a year from now things could turn out even worse. So the best way to protect yourself is to start stocking up right now, while prices seem a little bit high. They are low compared to where they will be in 6-12 months from now.
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