tag:blogger.com,1999:blog-502356674750161309.post8978420947406870796..comments2009-02-12T07:21:54.190-08:00Eric deCarbonnelhttp://www.blogger.com/profile/08023745289801416061noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-502356674750161309.post-84328937095750092592009-02-12T07:21:00.000-08:002009-02-12T07:21:00.000-08:00The mortgage problem is also raising food prices. Farmers can't pay for their coops!<BR/><BR/>http://online.wsj.com/article/SB123440092979675383.htmlAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-502356674750161309.post-90694268174935231952009-02-11T22:23:00.000-08:002009-02-11T22:23:00.000-08:00Looks like a lot of people are going to be foregoing bariatric surgery in the near future.<BR/><BR/>Eric, you seem caught up in this theory of higher staples prices based on drought and natural disasters when you should be focusing on market based supply destruction. Right now alot of farmers are having liquidity issues along with everyone else. Couple that with depressed commodities levels in such a short period of time and your drought thesis you have a pending disaster.<BR/><BR/>But it shouldn't be understated that supply destruction has begun in earnest world wide, and nothing says increased money velocity like spending on essentials, in fact I bet Zimbabwe has a helluva money velocity rate even though their per capita GDP is 200 bucks a year.<BR/><BR/>People won't spend on assets because credit will be tight (deflation), jobs will be scarce (deflation), government payments to prevent riots will increase (inflation), impaired production of staples due to liquidation, credit freezes, more people sitting home instead of producing the goods they need, while the government prints away will lead to the worst of all outcomes an inflationary depression, its a comming.<BR/><BR/>Look for DECREASED PURCHASING POWER for individuals as government fails to keep up with inflation on the way up and people losing money on the way down as deflation reveals who's been swimming naked.Anonymousnoreply@blogger.com