Commodity Online reports that 49 million Americans food insecure.

(emphasis mine) [my comment]

49 mn Americans food insecure: USDA study
2009-11-17 23:50:00

CHICAGO (Commodity Online): The U.S. Department of Agriculture's Economic Research Service reported on Monday that 49 million Americans, including nearly 17 million children, are food insecure. The 2009 report on Household Food Insecurity in the United States paints an alarming picture of the pervasiveness of hunger.

This is an increase of 36 percent over the numbers released one year ago by the USDA, which found that 36.2 million American were at risk of hunger. "It is tragic that so many people in this nation of plenty don't have access to adequate amounts of nutritious food," said Vicki Escarra, president and CEO of Feeding America. "Although these new numbers are staggering, it should be noted that these numbers reflect the state of the nation one year ago, in 2008. Since then, the economy has significantly weakened, and there are likely many more people struggling with hunger than this report states.

The new data reinforces recent findings from a research study conducted by Feeding America, the nation's leading hunger-relief organization, reflecting a dramatic increase in requests for emergency food assistance from food banks across the country.

Conducted in September, the Feeding America study shows that its network food banks experienced an average increase in need of nearly 30 percent this year. While the numbers vary geographically, some food banks are reporting increases of more than 50 percent in requests for emergency food assistance over a year prior.

"National socio-economic indicators, including the escalating unemployment rate and the number of working-poor, lead us to believe that the number of people facing hunger will continue to rise significantly over the coming year," added Escarra. "Research on previous economic recessions indicates that people who fall into the grips of poverty in a time of recession do not recover financially. Many of those people are likely to be in need of our services now or in the future.

"Feeding America's 200 food banks continue to work on the front lines feeding more than 25 million people each year, through our country's food pantries, soup kitchens, and emergency feeding centers - more than 63,000 agencies in total," said Escarra. "These establishments, many of which are grass root and faith based centers operated solely by volunteers, serve as an oasis for the more than 4 million people who seek relief weekly to help feed themselves and their families. Emergency food assistance is a critical link in the nation's response chain to help people through times of crisis."

Escarra observes, "Our network food banks are calling us every day, telling us that demand for emergency food is higher than it has ever been in our history. Feeding America will continue to work closely with our partners at USDA to ensure that the public and charitable sectors are keeping pace - as best we can - with the dramatically increasing needs for food assistance." [Imagine what is going to happen as food prices double then triple over the next few months as the dollar/food panic unfolds]

Feeding America provides low-income individuals and families with the fuel to survive and even thrive. As the nation's leading domestic hunger-relief charity, our network members supply food to more than 25 million Americans each year, including 9 million children and 3 million seniors. (Courtesy: PRNewswire)

Commodity Online reports that US role in world economy shrinking alarmingly.

US role in world economy shrinking alarmingly
2009-11-18 09:15:00

BALTIMORE, USA (Commodity Online): For the first time in 200 years, American consumers are no longer the driving force behind the world's economy. In his book, Fiscal Hangover, Keith Fitz-Gerald--one of the world's leading experts on global investing--picks apart every important change and identifies unprecedented opportunities.

Investors will discover how the U.S. role in the world economy is shrinking at unheard-of rates; how and why government intervention may well prevent the U.S. markets from normalizing in years to come; why Asia is already well on its way to becoming the next great financial center; and why China's Yuan is quietly replacing the U.S. dollar as the world's reserve currency.

Commodity Online reports that dollar collapse to ravage US economy and Obama.

Dollar collapse to ravage US economy and Obama
2009-11-18 08:35:00
By Christopher G. Galakoutis

…
As discussed last post, I don’t believe the US will resort to outright money printing as per Weimar Germany in the 1920’s or more recently Zimbabwe. The bond market has a gun to Ben Bernanke’s temple, and is telling him in no uncertain terms that if he were to drop dollar bills from helicopters, he would get his head blown off. Think of it as the bond market staring down the Fed and telling it that the dollar had better start behaving like gold. [This is flawed logic. The reason Bernanke will print money like a madman is to prevent the treasury market from collapsing.]

All sides agree we will see deflation in terms of gold. What happens in nominal terms is the big question. A bond market up until now going along with Fed actions is not signaling that the Fed has or will lose control of the dollar. In fact, it is signaling the opposite [The Fed has bought over 1 trillion US debt in the last year. This is the only reason interests rates aren’t higher]. Bernanke’s SAT score was 1590 out of 1600. He’s no dummy [Bernanke’s intelligence is irrelevant, he is a mere pawn of the US Treasury department]. He knows who his bosses are, and he will do what they ask [The US treasury (Bernanke’s master) will demand he print money]. He and the government tipped their hands in that respect during the crisis, when they chose who they chose to bail out in a massive way, while the first tent cities where going up across the country.

That leaves a loss of confidence in all paper currencies and specifically a collapse of the US dollar as the only other trigger that takes gold to much higher levels. But that would also mean the US’s friends and allies turning their backs on this country at a time when it could be argued the US is most in need of their continued support. [The global food crisis which will start in two or three months, will cause the world to abandon the dollar]

It would mean the world turning its back on a new administration and a new president loved the world over. And whom might the world have to deal with next, should a collapse of the US dollar ravage the economy and Obama in 2012?

If the world turning its back, and dumping the dollar in a coordinated effort, is the scenario that plays out, then holding dollars will prove to be a bad move. But I don’t see that scenario playing out [if you were aware of the global 2009/10 food shortage, you would]. Sure, at some point foreign creditors will tighten the screws on the US, and it won’t be able to borrow as much as it has been. That is the day of reckoning I have written about.

That is when the US will be forced to make the tough choices. That is, cut deficits and perhaps negotiate repayment terms on its debts. I suppose those are the key issues that all of these arguments rest on.

Will the US make the tough choices and retain some semblance of self-respect [no way in hell], or will it simply print money and go the way of Zimbabwe? [Anyone who even has to asks this question knows nothing of history or how the world works.]

I would argue that anyone who believes there is no difference between a Zimbabwe and the US [me] -- in that the US takes the easy way out and literally prints greenbacks to pay off creditors -- simply does not understand how the world works [you kidding me? THE US HAS ALWAYS TAKEN THE EASY WAY OUT THE EASY WAY OUT IN THE LAST FEW DECADES. Did the US deal with social security crisis, the budget deficit, the trade deficit, etc? No. The Idea that the US would start being responsible at this point is ludicrous], and should they be investing in anticipation of such an outcome, will be looking at substantial loses in the near future [bullshit].

My reaction: It isn’t a pleasant subject, so I don’t write about it too often. Things are going to get much worst in the US over the next year.

With 49 million Americans food insecure and a looming global food shortage/dollar collapse, it shouldn’t take too much imagination to understand just how bad things will be. I have already written about the potential for famine in the US earlier this year…

The imminent collapse of the dollar leaves the US vulnerable to Famine.

1) There is no fixed relation between food and famine.

2) Many large famines have taken place despite moderate-to-good food availability

3) A famine develops when a sizeable number of people lose the economic means of acquiring food.

4) This can result from unemployment or from a sharp drop in earnings compared with food prices (ie: hyperinflation), even when there is no fall in food output or supply [although food shortages do also increase the potential for famine].

5) Market-based movements of food are related to demand and purchasing power.

6) The general prevalence of poverty and weakness of the economy in the country or region is an important pre-requisite for famine.

7) The sense of distance between the ruler and the ruled (between 'us' and 'them') is a crucial feature of famines. [ie: the distance Goldman and the average American]


Conclusion: Famine is caused by sudden loss of purchasing power by a portion of the population already living near poverty. If the dollar collapses and the food stamps one out of nine Americans depends on become worthless, the US would meet all the criteria for a potential famine.

Famine in Weimar Germany as an example

In January 1922, hyperinflation exploded in Germany. By December 1922, Germany was unable to feed its population or provide employment for even 60 per cent of the labor force. People began to die in the streets from starvation and hypothermia…

(emphasis mine) [my comment]

November 18, 2009
79 counties declared disaster
$500M in Miss. crops damaged by heavy rain, drought
LaRaye Brown

The federal government on Tuesday agreed to assist the state's farmers after excessive rains in the spring and fall and a summer drought damaged nearly $500 million in crops.

The Department of Agriculture designated 79 of the state's 82 counties natural disaster areas, opening the doors for farmers to apply for federal assistance programs. Farmers in three other counties - Kemper, Neshoba and Newton - also will be able to apply for assistance because they are contiguous to those declared primary disaster areas.

Among the state's five largest crops - soybeans, corn, cotton, rice and sweet potatoes - losses total more than $459.4 million, Mississippi State University's Agricultural Extension Service estimates show.

Tuesday's disaster declaration gives farmers up to eight months to apply for low-interest loans. They also can apply for the Supplemental Revenue Assistance Program, or SURE.

If approved for SURE, farmers could receive grant payments to help make up for revenue losses not covered by crop insurance. In order to apply for SURE, farmers must have crop insurance.

"It's a start," said George King, who farms in Chatham, about 25 miles south of Greenville, a region of the state hit hard by excessive rainfall. He won't be sure how he feels about the declaration until he learns more about the programs being offered. "A lot of those programs are hard to qualify for."

In this, his 22nd crop, King got only 40 percent of his expected yield on cotton and had to leave some soybean acreage unharvested because of excessive damage. This was the first time he had to plow over crops.

It's been a year of painful firsts for many farmers. Spring rains forced them to plant late or washed away seeds, leading many to replant.

Recent unseasonably heavy rains kept farmers from harvesting. What was harvested was of poorer quality and - in many instances - excessive moisture rotted crops which had to be plowed over.

To qualify for the declaration, counties had to show at least 30 percent crop damage.

The state office of the Farm Service Agency did not release information about losses in counties. But MSU Extension Service figures show many crops will take substantial hits this year.

The state's sweet potato crop is expected to record about a 64 percent loss. Soybeans are down nearly 44 percent and cotton suffered a 48 percent value loss.

The Daily Comet reports that disaster declaration for farm losses in 5 states.

Disaster declaration for farm losses in 5 states
The Associated Press
Published: Wednesday, November 18, 2009 at 7:00 a.m.
Last Modified: Wednesday, November 18, 2009 at 7:00 a.m.

JACKSON, Miss. - Federal agriculture authorities have declared disaster areas in parts of Alabama, Arkansas, Louisiana, Mississippi and Tennessee due to crop losses from a combination of severe spring and fall flooding and summer drought.

Agriculture Secretary Tom Vilsack said the declaration will "provide help to hundreds of farmers who suffered significant production losses to a wide variety of crops."

The declaration qualifies many farmers in the designated areas for low interest emergency loans from the U.S. Department of Agriculture's Farm Service Agency.

The primary disaster areas are in 79 Mississippi counties and contiguous counties and parishes in the other states.
…
To qualify for the declaration, counties and parishes in the five states had to show at least 30 percent crop damage.

"Unless something equivalent to the wasted money that we put into the (banking) bailout is done for farmers, they are going to have a long, difficult road, after which they still may not be able to come out of this," said Ernie Flint, an agronomist with MSU's Extension Service.

Flint said many farmers had debt before this season and giving them new loans - even if they are low interest - will only add to the burden.

Mississippi Gov. Haley Barbour began the process of getting the disaster declaration last month when he wrote a letter to the USDA asking the state's Farm Service Agency to begin tallying damages.

"While I am pleased these areas can qualify for much-needed assistance, we have to understand this crop disaster will continue to put downward pressure on tax revenues," Barbour said in a statement Tuesday. "The important agriculture sector faces a long road to recovery, just as does the state's economy as a whole."

The Daily Comet reports that USDA designates 79 Mississippi counties as disaster areas.

79 Mississippi counties disaster areas
Nov 17, 2009 4:50 PM

The U.S. Department of Agriculture has designated 79 counties in Mississippi as primary natural disaster areas due to losses caused by the combined effects of severe spring and fall flooding, and summer drought, that occurred March 1, 2009, and continuing.

The 79 counties are:

Adams, Alcorn, Amite, Attala, Benton, Bolivar, Calhoun, Carroll, Chickasaw, Choctaw, Claiborne, Clarke, Clay, Coahoma, Copiah, Covington, De Soto,

Forrest, Franklin, George, Greene, Grenada, Hancock, Harrison, Hinds, Holmes, Humphreys, Issaquena, Itawamba, Jackson, Jasper, Jefferson, Jefferson Davis, Jones,

Lafayette, Lamar, Lauderdale, Lawrence, Leake, Lee, Leflore, Lincoln, Lowndes, Madison, Marion, Marshall, Monroe, Montgomery, Noxubee, Oktibbeha,

Panola, Pearl River, Perry, Pike, Pontotoc, Prentiss, Quitman, Rankin, Scott, Sharkey, Simpson, Smith, Stone, Sunflower,

Tallahatchie, Tate, Tippah, Tishomingo, Tunica, Union, Walthall, Warren, Washington, Wayne, Webster, Wilkinson, Winston, Yalobusha, and Yazoo.

“President Obama and I understand these conditions caused severe damage to the area and serious harm to farms in Mississippi and we want to help,” said Agriculture Secretary Tom Vilsack. “This action will provide help to hundreds of farmers who suffered significant production losses to a wide variety of crops including corn, cotton, rice, soybeans, wheat, pasture and forage crops.”

Farm operators in Kemper, Neshoba and Newton counties in Mississippi also qualify for natural disaster assistance because their counties are contiguous.

Farm operators in the counties and parishes listed below in the adjacent states of Alabama, Arkansas, Louisiana and Tennessee also qualify for natural disaster assistance because their counties are contiguous.

Alabama: Choctaw, Colbert, Franklin, Lamar, Lauderdale, Marion, Mobile, Pickens, Sumter and Washington.

Arkansas: Chicot, Crittenden, Desha, Lee and Phillips.

Louisiana: Concordia, East Carroll, East Feliciana, Madison, St. Helena, St. Tammany, Tangipahoa, Tensas, Washington and West Feliciana.

Tennessee: Fayette, Hardeman, Hardin, McNairy and Shelby.

All counties and parishes listed above were designated natural disaster areas Nov. 13, making all qualified farm operators in the designated areas eligible for low interest emergency (EM) loans from USDA’s Farm Service Agency (FSA), provided eligibility requirements are met.

Below is the updated graphic showing counties designated as disaster areas by the U.S. Department of Agriculture (data from USDA).

My reaction: The USDA has basically designated the entire state of Mississippi as a natural disaster area.

But don’t worry, the USDA is also projecting a near record Mississippi soybean crop (sarcasm)! Just look at the chart below.



Conclusion: According to the USDA, both of the following is true:

1) 79 of the Mississippi’s 82 counties have suffered at least 30 percent crop damage.
2) Mississippi soybean production is only going to fall 1.7% from last year's record breaking crop.

Amazing…