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…