Glorious Food, Wicked Prices: Imminent Hyperinflation
This absurd over-concentration of global agricultural production in the U.S. not only makes feeding the world highly dependent on the weather of one nation (the U.S.), but makes it equally vulnerable to its corrupt/insane agriculture policies.
The obvious example is ethanol, where the ridiculously excessive ethanol subsidies mean that the U.S. currently wastes roughly 40% of its annual corn crop producing the world's most-inefficient (and most heavily subsidized) bio fuel. Put another way, insane U.S. government ethanol policies by themselves waste more than 10% of total global corn production.
There's still one final dimension of insanity to the subsidy-distorted global food production model. In our modern world, dominated by Western agricultural corporations shipping their products (literally) halfway around the world; roughly ¼ of the global food supply spoils in transit.
Obviously without massive Western subsidization, much more of the global food supply would be grown locally. If that were to happen, the percentage of global food production wasted by spoilage in transit would be sure to plummet.Instead, we have the Western agriculture model. Countless millions of small farmers bankrupted, and doomed to poverty and/or "slavery." Insane/dangerous over-concentration of agricultural production in Western (corporate) agricultural production. An unbelievable percentage of total, global food production completely wasted -- as a direct result of Western agricultural imperialism. At the end of it all: The collapse of the global food supply; a massive, global food-supply crisis; and a resulting price-shock for food prices that will doom countless millions to starvation. And after all of that, the bankers' worthless Western currencies are still certain to plummet to zero via the ensuing hyperinflation. Follow Jeff Nielson @bullionbulls This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
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