Corn Rationing Needs to Begin

Fran Howard
Agweb

The corn market is extremely tight heading into the New Year, and analysts expect short supplies and heavy use to keep upward pressure on corn prices in 2011.  

"The corn market has one job and one job only—to go high enough to make people stop using the product," says Ryan Turner, risk management consultant for FCStone, Kansas City. "We are past the point of encouraging more supply." Turner predicts 2011 corn futures prices will exceed 2008 highs. "I don’t know if it will happen in January or June, but it will happen," he says.


Soaring corn prices will slice into demand, with corn exports expected to fall first followed by feed usage. Analysts anticipate the cattle industry to begin rationing earlier than other livestock sectors due to poor margins, but rationing in poultry, hog, and dairy will be close behind. "It will be very painful," Turner adds.
        
USDA’s latest World Agricultural Supply and Demand Estimates (WASDE) put the carryout for the 2010-11 U.S. corn crop at 832 million bushels, less than half the previous year’s carryout of 1.7 billion bushels. USDA pegs the average U.S. farm price for the 2010-11 crop at $4.80 to $5.60/bu. World supplies have also tightened: USDA’s latest estimate for world ending stocks for the 2010-11 crop is 130 million metric tons, a nearly 12 percent drop from the previous year’s 147 million metric tons.
        
Looking ahead to the 2011-12 crop, Chad Hart, agricultural economist with Iowa State University, calculates the full cost to grow corn in Iowa will be $4.25 to $4.50/bu., but revenues will be more than $5/bu., leaving at least a 50-cent-per-bushel margin. "That’s a really good margin, similar to 2007-08, when the first big push in ethanol occurred," says Hart.

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Absolute power comes from absolute control over food

Devinder Sharma
Ground Reality

Ever since I was a child I have been drinking milk bought directly from a small dairy in my neighbourhood. When I moved to New Delhi, for some months I managed to get my direct supply of milk from a neighbourhood supplier. But soon, the buffalo-keeper moved out his animals under pressure from builders. This was almost two decades back, and since then I am left with little option but to buy processed milk.

However, there are millions in India who can afford to avoid intake of processed milk and I think they are the lucky ones. I wish I could still buy my daily requirement of milk from the small neighbourhood dairies that dot the outskirts of New Delhi, and elsewhere.

I was therefore shocked when I viewed the accompanying video on YouTube.

Police raiding an organic grocery shop in California.

This is certainly outrageous. But this is a grim pointer to where the next battles would be fought. It is not water, as many people believe, but food that will be putting nations at war. You can clearly see, if you want to, where it is coming from. Multinational food giants have been slowly but steadily gaining control over food. They know that absolute control over food is the road to absolute power.


The process of takeover of food simultaneously began on several fronts. It began with Green Revolution in the late 1960s, which was essentially to provide controlled technology to increase farm production in developing countries. This was followed with Structural Adjustment Programme that the World Bank/IMF pushed seeking policy changes through the 150-odd conditionality's that came with every loan. To provide more teeth to the process, the World Trade Organisation (WTO), and the Free Trade Agreements (FTAs) have been brought in.

Technology is now controlled through the instruments of Trade-related Intellectual Property Rights (IPRs), and unhindered grain trade is made possible by the unjust obligations that developing countries have been made to accept under the so-called free trade paradigm. To complete the control over the entire food chain, the third actor in the game -- food retail -- is now being moved across the national borders. G-20 is pushing for compliance, asking member countries to streamline the norms that facilitate the entry of Foreign Direct Investment (FDI) in Multi-Brand Retail.

Internationally, the food trio -- Monsanto/Syngenta as symbol of the technology providers;Cargill/ADM among the major food trading companies; and Wal-Mart and Tesco representing food retail -- have formed an unholy alliance They operate in unison, making the governments fall in line. Food laws are being changed everywhere across the globe to make it easy for the trio to operate. WTO is helping to push farmers out of agriculture thereby making it easier for these multinationals to march on. IPR laws are bringing the necessary changes in national laws in conformity with internationally designed parameters bringing private control over technology.

The process of takeover of food is now complete.

But there are still irritating impediment on the way to absolute control over food. Alert and conscious consumers are not giving up so easily, and they are gaining in strength. Even in the United States and Europe, more and more people are realising the dangers of processed foods, and silently moving away to organic foods. The annual market for organic foods is growing at a phenomenal 20 per cent. This has to be stopped. So the regulators are now working overtime to outlaw organic foods. The underlying objective is to limit your food choice. You will be left with no option but to buy what the food giants want you to buy. Hobson's choice, isn't it?

In the name of food safety, which is a misnomer, food laws are being changed. S 510 is one such law that the US is considering to bring in. One of the world's most corrupt body -- US FDA -- is at work. It is working overtime to outlaw organic food. The prescription is simple: GM food is what you should be eating, organic food is bad for your health. That's the best it can do. The police raid in an organic store in California therefore is just the beginning. You wait and watch. The day is not far when the police will enter your kitchen. In the name of Mendel in the Kitchen, Nina Fedoroff, presently science advisor to the Secretary of State, is working hard to police your kitchen.

There are some who realise the threat ahead. This is what someone wrote in the comments section of the YouTube: I go to my apt garbage bin and search out empty general mills cereal boxes and various gmo containers, wash them out and sterilize them and place my organic foodstuff inside because I don't want to be dragged down to jail. I can't afford a criminal record, to maintain my job.

I don't know what is happening to the United States. Whenever I see the Statue of Liberty I can't miss the tears in her eyes. Only the Americans refuse to see it. As my film-maker friend Ajay Kanchan often says:America is the country where civil liberties have been mortgaged to the multinationals. People live in virtual tyranny. I am in complete agreement. I can only feel sorry for fellow Americans. But I can assure you the world outside is waiting to help you, to pull you out of the police rule. Come, let us join hands. Let us try to regain our control over what we eat.

And if you still believe, the police is acting right. Read this letter (from someone with the user name 12dogpal): 'They did not ban the H1N1 virus infection at the factory pig farm in Mexico where the virus was released. The pork was still sold in the USA. They didn't close the Wright County Egg farm for poisoning the food supply, they didn't close Wal-Mart for passing out e.coli beef. They didn't stop the drug co's from putting out dangerous drugs, lets face it folks, your government is your worst enemy.'

How true?

As Jawaharlal Nehru had said during the days of the British Raj: Freedom is in peril, defend it with all your might. Start by saying no to S 510. Remember, regaining control over our food is the ultimate freedom.

RELATED ARTICLES:
Raiding and Regulating the New Enemy in the War on Drugs: Rawesome "Foodies"
Food Fascism in the Land of the Free
Secretive Executive Order Establishes "Big Brother" Health Bureacracy

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Why Hyperinflation is Coming and How to Prepare Now

Eric Roseman
Sovereign Investor

“We all keep worrying deflation, but it can turn so fast” – Adam Fergusson

Back in 1980 when my late grandfather, Abe Roseman, passed away, I inherited numerous personal items. These included tie bars, cufflinks, his old desk and lamp, and several other reminders of my childhood that to this day always put on a smile on my face.

Thirty years later, rummaging inside my late grandfather’s desk, I found 55 ounces of silver. Somehow, after all those years, I failed to pry open every drawer; what a surprise! How did he know I was a silver bull?

Or, perhaps, he wanted to be prepared for hard times.

Wisdom in Experience

I was pretty close to my grandfather. Abe was born in 1911 and lived through the Great Depression in Montreal. My grandmother would later remind me how bad things were in Canada at the time with unemployment at absurdly high levels from coast-to-coast. My grandparents knew how to be frugal and understood the value of money.

My generation (I’m in my early 40s) doesn’t know what it means to suffer an economic catastrophe; but we came darn close in 2008. I think we’re already in a “soft” economic depression. By “soft” I mean that without government backstops two years ago, we’d see blood in the streets, civil chaos and, possibly, runaway inflation by now.

In my view, this is a depression.

When 2 Million Marks Won’t Buy a Loaf of Bread

One item I inherited from my grandfather in 1980 was a bunch of old German bank notes, neatly tucked away in a plastic folder. At the ripe age of 14, I had no clue what these bills were worth, let alone what the German inscription meant. So I just buried Grandpa’s stash in my safety deposit box for the next 30 years.

Last month, however, I decided to review the causes and effects of the German Weimar Republic’s hyperinflation in the 1920s. I went to the bank and got Abe’s German notes. To refresh my history I read Adam Fergusson’s When Money Dies, first printed in 1975. I urge every investor to grab a copy ahead of “Quantitative Easing Part II” this summer.

It turns out my grandfather kept a bunch of German marks from periods ranging from 1922 to 1924; the note below is a scan. The amount is Zwei Millionen Mark or 2 Million Marks printed on Aug. 15, 1923 – exactly the same year that mind-boggling inflation started to run out of control in Germany.

Unbelievably, two million marks could barely buy a loaf of bread. Within hours, prices would escalate rendering that loaf to 3 million marks, four million marks etc. German paper had become almost worthless. Hyperinflation wiped out the entire middle class.

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Chavez, Venezuela Introduce "Good Life" Food Rationing Card

Antonio Maria Delgado
Miami Herald

Presented by President Hugo Chávez as an instrument to make shopping for groceries easier, the ``Good Life Card'' is making various segments of the population wary because they see it as a furtive attempt to introduce a rationing card similar to the one in Cuba.

The measure could easily become a mechanism to control the population, according to civil society groups.
``We see that in short-term this could become a rationing card probably similar to the one used in Cuba,''

Roberto León Parilli, president of the National Association of Users and Consumers, told El Nuevo Herald.

``It would use more advanced technological means [than those used in Cuba], but when they tell you where to buy and what the limits of what you can buy are, they are conditioning your purchases.''

Chávez said Tuesday that the card could be used to buy groceries at the government chain of markets and supplies.

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