Food shortages with the help of Kondratiev waves

I have written many times how by making markets NOT free, one can help any situation along.
This dedades long war against farming has now reached its climax and is followed by a natural cycle described by k-waves. Note this has nothing to do with Carbon Taxing and the fake Global Wamring crowd..

liberated from: http://www.jsmineset.com/2012/07/22/jims-mailbox-992/

Mother Nature Doesn’t Care
CIGA Eric

The dust bowl or dirty thirties ran from 1930 to 1940 (chart 1).

Chart 1: Spot Commodity Prices: CRB Spot Index (1947 – Present); 16-Raw Industrial Spot Price (1935-1947); Great Britain Wholesale Price of All Commodities (1885-1935) and Trend Z Scores

If a comparison 2008-2020 and 1930 to 1942, specifically 2012 and 1934, both agriculturally and economically, doesn’t raise the hairs of concern, nothing will (chart 2).

Chart 2: Drought’s Footprint:

Mother nature don’t care if humans are battling a sovereign debt crisis or not.  Natural cycles show no mercy for the unprepared and election-year illusions.  If commodity prices surge due to contraction in supply, be absolutely certain consumption-driven GDP will take a hit.

Headline: Widespread Drought Is Likely to Worsen

The latest outlook released by the National Weather Service on Thursday forecasts increasingly dry conditions over much of the nation’s breadbasket, a development that could lead to higher food prices and shipping costs as well as reduced revenues in areas that count on summer tourism. About the only relief in sight was tropical activity in the Gulf of Mexico and the Southeast that could bring rain to parts of the South.

The unsettling prospects come at a time of growing uncertainty for the country’s economy. With evidence mounting of a slowdown in the economic recovery, this new blow from the weather is particularly ill-timed.

Already some farmers are watching their cash crops burn to the point of no return. Others have been cutting their corn early to use for feed, a much less profitable venture.

“It really is a crisis. I don’t think we’ve ever seen anything like this in my lifetime,” Gov. Pat Quinn of Illinois said after touring ravaged farms in the southern part of the state.

The government has declared one-third of the nation’s counties — 1,297 of them across 29 states — federal disaster areas as a result of the drought, which will allow farmers to apply for low-interest loans to get them through the disappointing growing season.

Source: nytimes.com

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