Tuesday, April 22, 2008

Even less money to waste on Mortgages

Era of cheap food ends as prices surge

Families have been warned that the prices of basic foods will rise steeply again because of further acute shortages in the commodity markets.

Posted by enuii @ 11:11 PM (859 views)
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9 thoughts on “Even less money to waste on Mortgages

  • planning4acrash says:

    Again, we have lies. There is a shortage of dollars in the pockets of the plebeians, whilst banks, who speculate on international food markets, have a disproportionate percentage of the world’s money supply, as a direct result of bank “bail outs”.

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  • planning4acrash says:

    It is exactly the same argument as saying that an infinite supply of 100% mortgage money chasing a finite quantity of houses always results in a shortage of houses, because the speculators require an infinite supply of houses to achieve speculation and stable houses.

    Applied to food prices, banks almost have an infinite supply of cash to improve their balance sheets by speculating within the markets and lending to each other to allow them to do so. Hense, we have a virtually infinite supply of cash chasing a limited food crop. It doesn’t matter whether the speculation is for bio-fuels or food staples, the money for the speculation comes from the same source. The result is, that all, but disproportionately the poor, are robbed of their standard of living (in the west) and their lives (in the developing world).

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  • “…because of further acute shortages in the commodity markets.”

    Bull. It’s because of commodity inflation outstripping wage inflation – i.e., we are getting poorer. Doh…

    Lesson: don’t waste your time with propaganda rags like the Times.

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  • planning4acrash says:

    Harold, unfortunately, the entire corporate infrastructure is engaged with propaganda. Has been for generations.

    Finally, with t’internet, us plebs can access information to find out the truth.

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  • I guess 10% of the rise will be coming from the fact this government has devalued the pound.
    Not sure what percentage of food we import but I’d guess at 60-70%.
    But you’re all correct about the speculation element.

    Can society survive without a banking system ?

    Or can it be changed/regulated so radically that it is just that – a bank – not a commodity speculation pool.

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  • planning4acrash says:

    A currency backed by a virtually unproductive commodity with almost constant supply (gold) would ensure that money supply and inflation remained stable. Capitalism isn’t the problem, we don’t have capitalism. Govt’s printing money is a planned economy.

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  • In terms of how much we import, a navy officer once told me it’s approximately 97% of everything we eat, wear and use. Though this isn’t just for food, it does throw light on a) how we can’t actually sustain ourselves b) how a nation of former farmers has turned into a pretty bunch of parasites over the generations c) how much we must be taking from the developing world.

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  • also sold to rent says:

    Speculation is a minor part in this and a required part. Demand growth has outstripped supply and input prices are increasing. Therefore prices increase. This has to happen to increase supply. It’s pretty simple. Not pleasant, but simple.

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  • planning4acrash says:

    Also sold to rent, shortages do not result in general inflation without an accompanied growth in money supply.

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