Europe looses 1000 small farms a day, China 1.7X pork prices this year almost double, US corn and soybean harvest far behind schedule as a new blizzard rips through the mid-west grow zones, Hard Red Winter wheat transitioning to sorghum planting, I feel its a grow zone shift in play.
Tapestry for Hyperinflationary Food Prices
This video was originally published 12/11/2019
ArmstrongEconomics claims that 400,000 small farms or small town acreage holdings per year are lost in the E.U. On top of that, an enormous amount of land acreage has not been replanted.
Declines in agricultural production through the E.U. made forecasters call for food price rises through 2025 because of a “probable inflationary wave”. It has been, however, my conjecture for the longest time that the timeline for incredibly huge food price rises will be from 2021 – 2024, so this is an interesting time overlap.
My projections for food price increases are based on the Grand Solar Minimum intensification and the recoupling of the Sun’s magnetic fields for a few years before they move into a cancelling phase again 2028.
Enormous amounts of information can be accumulated by understanding cycles, especially in the economic and agricultural spheres. The chart below, for instance, describes a winter type of decline, proving that economic cycles can also be measured by the seasons. The colder phase means winter, leading to a declining economic phases; and the Grand Solar Minimum will amplify effects for everyone.
It is important to ask, “Who is not going to exploit this inflationary wave, or push it, and create man-made inflation, to make more money in the market?” “Which sector do you think will not participate?” Will it be the governments, companies, house buyers or speculators? In my opinion, the house buyers will get swept out of the market. This will leave the other three exploiters to compete. Take note that who controls food, controls society. Free energy won’t matter if you are crawling off the floor due to lack of nourishment.
A perfect example is pork hyperinflation sending Chinese consumer prices soaring the most in seven years. Comparing surging prices that had caused a run-up in commodities from 2007 – 2009, if China is already at this level of inflation and global commodity prices are not yet as high as 2008, there will be a huge runaway effect in China in the very near future.
Pork hyperinflation increased 173% year-to-date on unadjusted pork prices; which is equivalent 1.7X higher than at the beginning of the year. What happens when you extrapolate that out through your paycheck?
What if 20 items rise 1.7X in price? What will you stop spending on first? Trace that back through the economy and a wholesale spot prices of corn, wheat, bread, beans, potatoes, etc.
Where, do you think, will your disposable income going to go?
Following with Martin Armstrong's analysis of European crop declines and the loss of farms, let’s look at how the USDA bankrupted farmers. After the first initial reports during Spring planting season, everybody across the industry, including farmers had been following acreage numbers declines.
Even news reporters were expecting a forecast drop in production in the United States for corn due to the largest floods ever recorded during the 2019 planting season. Yet the USDA reported corn production was going to increase 2%, which is why a lot of farmers were bankrupted. Farmers were misguided by the faulty forecasts in futures contracts. The same thing happened to smaller farms lost in Europe, so two continents are on the same page in terms of crop losses.
U.S ending stocks, as reported by the USDA, for corn yield and soy bean outlook only dropped a sliver, even with the largest floods and the latest planting ever and record prevent plant insurance claims. If each of these calamities are combined, the forecast of ‘no price increases’ is purely nothing but smoke and mirrors.
Traders were disappointed and questioning why the USDA left production numbers unchanged from the previous month's report plus a full month of first hand reports come out on how pitiful the yields are and how small the kernels have been all around, yet their estimates stayed the same.
This, for example, is what happened on Halloween 2019 with early blizzards for the third year in a row.
Then magically, to explain away why there might be some shortages of hard red winter wheat, this article appears: “US Winter-Wheat Acres Set to Drop the Lowest in 110 years.” As explained, this is due to higher prices for sorghum compared to historical prices for hard red winter wheat.
This has made some farmers switch over to corn, sorghum or something else that is going to fetch a higher price than hard red winter wheat.
To counter that argument, sorghum was a secondary crop globalists were going to switch to in grow zones, while agriculture migrates south. This, in earnest, is the first verification of switching to a substitution crop in a different more southerly grow zone.
Corporate media is making excuses why farmers are moving to sorghum, instead of explaining the dismal harvest in hard red winter wheat for the last three years. Graphic accompanying the article explains it all. Hard red winter wheat conditions during the last week of October declines in Texas.
Farmers did not just magically quit farming winter wheat in Texas on a whim, because this crop has been grown there for more than a century already. Do you farmers they just decided to quit, or is it that they cannot grow it anymore in that climate and are now deciding on substitutes that will thrive there?
Anyhow, I think we are starting to pin point which crops are being lost, in which places, and in which hardiness zones. Maybe European farmers are going to move away from wheat and corn and switch to sorghum, barley or something else that can be grown in the new emerging Grand Solar Minimum climate.
Winter Woes also reported lowest planting of hard red winter wheat since 1909.
So, what is with the American agriculture that is almost a century of production with a larger population, modern machinery, and with everything supposed to on GPS creating the highest yields ever, yet are we sliding back in time?
A look back at the 2019 Corn Harvest-Progress, anywhere in red was far behind normal because of the latest planting since 1928. They had to nudge the planting season into the second and the third week of summer, due to the wettest conditions ever recorded during spring.
This is where the USDA is starting to operate in the gray area versus reality and actual crop reports and had put out reports the 180 degree opposite which crashed markets with insider trading ahead of report release dates.
Soybeans are the same, look at all the red areas that have not been harvested because it’s not mature due to two-month late planting. Then incredibly early blizzards covered what was standing in the fields.
Moreover, another magical downgrade happened: “Tyson Beef Plant Fire Leaves a Huge Void in Processing Capacity.” The Kansas City plant processed about 6% of the national fed beef, which will be hard to replace. As a result, there will be a supply chain effect again.
There won’t be enough to push through the supply chain or something else will prevent the flow of the end product/ food from getting to the consumers.
During these events, storing food for a longer period of time such as canning, freeze drying, and vacuum packing are some of the preparation you might want to consider.
Thanks for reading, I hope you got something out of the article. If you like more content like this, I produce the tri-weekly Mini Ice Age Conversations podcast of a 30-minute in-depth analysis on the GSM you can take on the go through out your day.
PDF of this Article Tapestry for Hyperinflationary Food Prices
FULL VIDEO Tapestry for Hyperinflationary Food Prices
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*** Today’s Story Links ***
Europe is Losing 1,000 Farms Per Day & Climate Change Regulations May lead to Starvation
U.S. Winter-Wheat Acres Set to Drop to Lowest in 110 Years
https://finance.yahoo.com/news/u-wint…
USDA CORN YIELD ESTIMATE FALLS, PRICE CLOSES UP SLIGHTLY
https://www.agriculture.com/news/crops/usda-corn-yield-estimate-falls-price-goes-up
U.S. CORN HARVEST REACHES HALFWAY POINT, USDA SAYS
https://www.agriculture.com/news/crops/us-corn-harvest-reaches-halfway-point-usda-says
USDA to Conduct Exercise of Fictional ASF Outbreak
https://www.agriculture.com/news/livestock/usda-to-conduct-exercise-of-fictional-asf-outbreak
Tyson Beef Plant Fire Leaves Huge Void in Processing Capacity
Pork Hyperinflation Sends Chinese Consumer Prices Soaring Most In 7 Years
INFLATIONARY WAVE THEORY
http://inflationmatters.com/inflationary-wave-theory/
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