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Off The Grid News
Home Financial

The Food Crisis of 2010

by Esther
in Financial
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food crisis
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food crisisNews is spreading about the likelihood of a catastrophic global food crisis. Even mainstream publications are now beginning to question the official story from governments around the world.

For example, the US Department of Agriculture has predicted record harvests even though half the counties in the Midwest are currently disaster areas, which means they have lost at least 30% of the value of one crop.  Hundreds more counties around the country have suffered losses of 10 to 20% of their crops. In some states, virtually every county is a declared disaster area (such as Oklahoma, Louisiana, Arkansas and Alabama), with 30% production losses, and yet the USDA is predicting record soybean harvests.

Some observers believe the USDA is manipulating the data to show a sufficient supply of food because a shortage would lead to rising food prices which would destroy the economy and could seriously jeopardize the re-election of Barack Obama.So far food prices have remained very low, something which has differentiated this economic crisis from those of previous generations where consumers were forced to spend most of their income on food.

The soybean problem in America could become huge because the US is both the largest producer of soybeans and also the largest exporter. Other major agricultural economies are suffering catastrophic losses. For example, Argentina, which once boasted one of the world’s richest farm lands, has seen its soil devastated by a drought of historic proportions.Australia, China and the Middle East are also in the midst of years-long droughts which are devastating production. India, with one of the world largest populations, saw its wheat harvest destroyed in 2009 by wind, rain and hail.

The financial crisis also compounded problems, because there was less credit available to farmers with which to buy seeds and fertilizer.Farmers across the country are going bankrupt due to one of the worst harvests every seen, and yet the USDA is predicting the biggest crop ever.

Something is very wrong and the results could be catastrophic. Most Americans can handle the loss of a job, repossession, even a foreclosure. But few among us have any experience dealing with a lack of food. For all our lives most of us have had ready access to plentiful, healthy food sources, usually convenient to our workplace or home.

As the food crisis becomes public, hoarding and rationing will aggravate the situation. Few nations will have any interest in exporting food if there are shortages at home, which will mean that many nations who are dependent on food imports will go into full crisis mode.Additionally, foreign nations who are currently US creditors will undoubtedly stop financing US government spending when they are in effect subsidizing US food consumption. The result could be a collapse of the US currency. Even 10 or 20 percent devaluation would cause the true effective value of food to skyrocket. As experts have predicted, this could result in riots, looting, even a breakdown of civil order.

If these predictions are wrong, then we have nothing to worry about. However, if even a portion of this comes true, then our lives could be dramatically affected. Review your emergency plans and ask yourself whether your off-grid preparations include access to a healthy, long-term food supply.

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