Food shortages begin to occur under the conditions we are beginning to experience. Already there are some shortages of a few items on grocery shelves. The cost of fuel to transport is causing many truckers to quit the business for example.
Monetary policy is very important to food supply and cost of food. As government more and more overspends and overextends itself economically and monetarily with poor policy, poor practices on Wall Street, Fed bailouts of the financial industry, inflating the currency, higher cost of living, higher oil prices etc.--all these work together to affect every aspect of our lives, including food.
Globally speaking, I just read about the100,000 percent inflation in Zimbabwe. I can only imagine what that does to food cost. And other parts of Africa tied to the Euro, if our dollar goes back up, the euro will go down and that will be bad for African people.
Liquidity does not exist in a vacuum. All economy and monetary policy are interrelated, are they not? Food supplies can suffer for many reasons it is true-such as drought , disease, etc. but food is a commodity and from what I understand, common sense only, commodities are a wise investment in anticipation of more bumpy roads in the economy, with our money, and on Wall Street.
So maybe our dollar should be backed by gold? I do not know. But fiat currencies that must be micro managed stifle true free markets and changes the whole dynamic of the stock market I should think, if the Fed is always going to be there to interfere should they see fit. I think a true free market economy and sound dollar backed by something solid, as gold, would be more stable. And when a business manages its affairs badly, then it should be allowed to fail or stand on its own. Frankly, I think it would promote more moral and responsible business policy. In the meantime, I am stocking up on a lot of commodities at home in anticipation of later shortages should things go sour. Perishables I will get when I need to if I can.
Just a few thoughts.
