Just finished listening to a Stansberry interview with Byron King. He states next year, he expects consumers to be paying possibly triple what they do now for natural gas. It is a fallacy to believe that the US can supply the European needs for natural gas. Good interview.
And again for whatever reason, Ive been sanctioned from listing links
Stansberry Research
Russia Secretly Hoarded Gold for This Moment; Sanctions to Backfire on U.S – YouTube
KidHorn
1 year ago
You know your government is full of it when they express concern for poor people in a far away land.
RonJ
1 year ago
Let’s discuss Treasury Secretary Janet Yellen’s “Call to Action”
When did this become part of the job description of the Treasury Secretary?
Reptilicus
1 year ago
The so-called “Global South” is mostly supportive of or at least acquiescing to Russia’s aggression against Ukraine. It will be that same global south that bears the brunt of food insecurity brought about by the war of the breadbasket states. Perhaps intervening in global food and fertilizer markets will soften the impact of the rather stupid choices those nations have made, which would of course mean they’d be less likely to examine their policies. Is this wise? Sure, the world is dangerously close to mass famine. But that’s mostly because many countries have likewise chosen to indulge overpopulation and food import dependence. If it doesn’t happen now, it will happen in 4 years, or 10, or 20 and the further into the future you go with that, the more people will be affected. Bad policies should be stopped as soon as they’re shown to be bad. They’re showing exactly that right now in so many ways.
The problem with “Bad policies should be stopped as soon as they’re shown to be bad.” is that stopping said policies may force you to get thrown off of the power seat and no one in power wants that. The only way your proposal would work is when we are ruled by AI/Robot overlords who will never have to give up power.
Please send aid immediately or there may not be enough people to save next year.
goldguy
1 year ago
I used to have a saying about the problems that plague America,”nothing a good famine couldn’t cure”… not that I wish for it, but the average American could afford to lose a few pounds, they would be much healthier for it.
Mish
1 year ago
Kiss two more idiots goodbye
Oileknuttall
1 year ago
There is very little Yellen can do. The world is entering a new paradigm. More conflict. Less cooperation. More “beggar thy neighbour”. Less compassion. More hoarding. Less sharing.
“The harsh reality that Yellen did not disclose is that giving away free food and fertilizer to prevent starvation in Africa will raise prices everywhere else.”
One key cause of civil libertarianism is upholding free speech.
Bhakta
1 year ago
Good morning Mish. Do you ever think that this is deliberately done? What’s the end game? Do they want to depopulate the planet using starvation blamed on Russia? Or are they just hankering to grab control of Russian assets? Or are they just in total delusion and don’t have a clue?
I don’t think Yellen is stupid, but there is an “old boys” club of entrenched interests in our government, and no one wants to rock the boat. But Yellen may also be somewhat economically ignorant. (or maybe I’m economically ignorant..LOL)
In the end either nothing will happen or will donate a few million $ worth – enough to make a story but an insignificant amount in the overall scheme of things.
MPO45
1 year ago
What good would it do to have tons of food if it can’t get to where it needs to be?
Another side effect of the population aging is very few people will be around to literally do the heavy lifting.
thimk
1 year ago
Yellens diatribe smacks of a lead in for more government spending . The feds will be reluctant to tighten .
Interesting factoid: USA is the world’s leader in ethanol production (55 %) almost twice is much as Brazil . 15.8 billion gallons 2019.
WTFUSA
1 year ago
“Neither the Fed nor the Treasury department grows food or makes fertilizer.”
Have to disagree with this as Yellen, in both her positions at the Fed and SecTreas has produced massive amounts of verbal fertilizer and continues to do so. Many others at the Fed and Treasury besides Yellen doing the same thing to the point where it appears likely that the ability is a prerequisite to getting the job. Unfortunately, that type of fertilizer is useless for growing anything but wealth disparity and debt.
ColoradoAccountant
1 year ago
I told my neighbor today that a day will come when we are ordered to rip out the grass and grow food.
Several years ago I quit dumping $100s of chemicals on my yard each year.
Won’t do it again unless I start a business selling sod to idiots.
Still, I can’t stand the Southwest. You got cactus. You got gravel.
quantumatoms
1 year ago
Nutrien Fertilizer company net income is up 586.93% year over year and people wonder why fertilizer prices are so high. They even came out and said they were holding back on production to sustain the high prices. Perhaps old fashioned greed and “because we can” actually explains a lot more than we like to admit.
Casual_Observer2020
1 year ago
I believe 30-40 % of food gets thrown out in America anyway. One way to solve that problem is to supply less food.
Yes the US throws a lot of food away. But the rest of the world does not. I live in SE Asia for 38 years and we don’t throw food away.
But the price of urea has a huge impact on the rice farmers and the cost of growing rice. My father in law is not buying urea for the rice crop this year because the cost is too high.
Much of America has lost the practice of cooking up leftovers until they’re gone.
Esclaro
1 year ago
Has a lightbulb flicked on over any of the dim witted that the current systems of energy and food production are unsustainable and subject to whims of dictators? It’s way past time to stop industrial agriculture dumping tons of fertilizers on their fields. It’s way past time to stop using fossil fuels. The American way of life is headed for a huge crash in the near future.
That’s for sure. For billions of years people have lived here growing food without huge combines and tractors and farms being owned by huge corporations.
That is why everyone should strive to be an elite!
Bam_Man
1 year ago
“Call to Action” = Print Moar Fake “Money”.
Eighthman
1 year ago
We have a an international mob of delusional and childish fools pushing the world into ruin. I don’t see any one honest or sensible enough (except China, maybe) to say Europe needs a thorough security treaty, separating weapons systems and creating neutral zones between Russia and NATO. In an age of satellites and remote sensors and the internet, non aggression pacts are more practical than ever. They are stumbling along, building faster and more dangerous weapons, with defacto hair triggers towards eventual nuclear war – by design or accident. Russia has been hit by meteorites more than once – which can resemble a nuclear strike ( even X rays, if large enough). The west discarded Minsk II and now people will starve as a result.
The understanding in the Minsk Agreement was Russia would not threaten its neighbors in the future. Putin cancelled that understanding immediately after he came to power. Read his early speeches, he had to create enemies to retain and consolidate power. Buffer zone are a 19th century doctrine. Russia is large enough, and for that reason does not need to invade countries on its borders or try to set up puppet government in adjacent countries. Has Putin set in motion the final self- dissolution of Russia?
Usually only skip through his posts. I thought that he would appreciate the correction of his misconceptions.
Cocoa
1 year ago
Ethanol is more like trash feed corn, but what it does do is reduce mileage. So in the end we are spending more for gas. It’s like filler in dog food. You are getting the volume but not the energy. Whole neoliberal Democratic regime is going to get whacked come November unless they really cheat the election…big time
Given the drive to electric motors, not much of an issue going forward. Farmers raking in the $$ from ethanol are going to have to figure out another Washington handout.
Ethanol has good calorific value – it is not filler.
dbannist
1 year ago
If you really want to know about how we are overproducing food, even today, read up on the Ogallala aquifer in the USA and the depleting water wells of northern India.
Key quote: “
In 1975 the overdraft equaled the flow of the Colorado River. Today the Ogallala Aquifer is being depleted at an annual volume equivalent to 18 Colorado Rivers.”
If the withdrawal was limited to replacement, the USA would cease being a food exporter. Think through the guaranteed future implications of that, because that is exactly what is going to happen one day.
I’m switching to vegan, it’s healthier anyway. I cannot believe the neocons helped instigate this mess in Ukraine. So what if it weakens Russia. China is the elephant in the room. We have a bunch of old leaders fighting yesterday’s battles
But you need more lbs. Protein is much more nutrient dense.
Remember when Asian people’s, who lived on carbs and veggies primarily tended to be shorter and slighter? When they were able to obtain more protein, typically in the form of meats, they began to grow to their real potential, some even becoming basketball players.
Vegans typically have too much fat to be edible for humans.
They can be used for animal feed.
Jojo
1 year ago
Of course…
========
Food buying habits are evolving in the face of inflation
Emily Peck
Rising food prices are slowly changing our grocery store shopping habits, already kind of weird after the pandemic pushed more Americans to eat at home, industry analysts tell Axios.
Why it matters: High inflation is rippling out into all kinds of markets — from nickel to housing to stocks to supers (supermarkets that is) — and changing the way we live.
State of play: Some folks are swapping different types of meat, as those prices climb. The cost of beef is up 20% over last year and chicken is up 13%, according to the latest Consumer Price Index report.
In the EU they think they can compensate for the energy prices by giving money to poorer consumers, and supporting energy intensive industries. It has not dawned on them that if you compensate the vulnerable, there still won’t be enough and you are actually fueling the prices. All the leadership seems so completely economically illiterate and malign.
In the end, as always, it will be the economically weak that are priced out of the next bid.
And with any real luck, the population of the planet will be reduced by 5 billion or so, which will be much more sustainable over the coming century. Most people contribute nothing to their communities or history and are superfluous.
Problem is, the ones who spend time “contributing” are the ones who go first. While the ones focused on robbing the ones contributing, are the ones least exposed. After all, they can just steal some more.
Yes an inconvenient truth . seems that population control dialogue has been cancelled . Remember Paul Ehrlich author of the population bomb.??
Nuddernoitall
1 year ago
Any prior assessment of former FED President Yellen being neutral and above the political fray (which is debatable) has been replaced by an ideologue (not debatable).
Doug78
1 year ago
When a major food exporter invades another major food exporter one can reasonably expect that the price of food will rise so Yellen is saying the obvious. I understand that Mish as a hard-core Libertarian is against all sanctions anywhere and at anytime principally because Libertarians believe they never work which is a fallacy. There are many examples throughout history where interfering in a country’s ability to conduct war through limiting their means to do so by economic sanctions. I repeat that their aim is not to change Russia’s behavior but to limit it’s possibilities to carry out it’s wishes by taking away the means.
Let me just ask you who won those wars and if restrictions on those countries’ commerce contributed greatly to their ability to wage the wars they started? Stalin gave everything Nazi Germany wanted in food and raw materials up till the day Germany invaded them. Stalin I guess didn’t believe in sanctions. Did it do him any good? Not at all.
You don’t know history. The Japanese invasion of Manchuria predates American sanctions by three years. Japan invaded in 1937 and the US put on the sanctions in 1941. Equally Germany invaded Rumania and Russia well after the war started with the UK. Please ask nicely your supervisor to furnish you with talking points backed by historical facts.
Just as with the Russians (who were preparing for these sanctions for almost a decade), the containment of Japan had been policy for much longer. The containment of China at present is also an obvious policy, without any actual formal siege being enacted.
“There are many examples throughout history where interfering in a country’s ability to conduct war through limiting their means to do so by economic sanctions.”
But none where the sanctioned country was big enough to be largely self sufficient in war making.
There’s also a huge difference between a full on naval blockade of a small, import-dependent-for-fundamentals country on one hand; and wishy-washy “sanctions” consisting of pilfering a yacht here and there from some high profile Russians, Americans and Chinese on the other. No amount of “sanctions”, consisting of stealing Paul Allens boats, would stop America from invading Mexico, if the Mexicans insisted on inviting Russia to install their latest nuke-tipped hypersonic missiles down there, pointing north. The US can outlast any such “sanctions.” Especially so, as long as China isn’t on board with them, which they have no need to be. The same is true for Russia.
If Yellen and similars screech loudly enough for long enough, some people may “blame” Russia for the shortages they are facing for awhile. But it won’t be exactly difficult for Russian PR people, to point out that what is hurting 3rd parties the most, is silly “sanctions,” not the immediate productive decrease resulting fro the war itself. Since while the latter is not a non-issue, what hurts people in the rest of the world the most, is rather that some self righteous yahoos, are running around with guns and barring them from buying what they need from a willing seller, Russia.
“But none where the sanctioned country was big enough to be largely self sufficient in war making.”
We will see won’t we but if this is the best you can do even before sanctions had been put on then it doesn’t bode well for Russian technology, industrial capacity nor level of training for its armed forces. Putin’s playbook is simpler now that a fast or slow takeover is no longer possible. He will have to go nuclear and everybody knows it.
A nuclear strike on day 1 would have ended the war immediately and the world would have been better off. The dead people would not have been, but everyone else would have been because there would be no long lingering war or sanctions etc. Just some outrage at what happened.
Incidentally it’s easy to press for continued sanctions when you aren’t personally going to suffer (I don’t mean you personally but rather most of the western countries). Some in the West will suffer greatly obviously (the really poor) but it’s the 3rd world who will eventually bear the brunt of the food issue because they don’t have the money to compete for the limited amount of food resources and fertilizers etc.
What’s happening right now is the equivalent of having your foot caught in a bear trap. Instead of just cutting off your foot (Ukraine) and living, the world is trying to survive the caught foot and wait out help or figure out a way to break the trap. Wait too long and it will be more than just the foot that has to be cut off, it may be the leg or worse.
You are talking about the US-Russia war , with Ukrainians, whether civilians or military, merely being collateral damage canon fodder …..A war undeniably provoked by the US, because Russia is too big a thorn in US’ hegemonic power hungry eye ….21 st century…. your sophisticated nation… incredible, ….actually I d be ashamed to be hard core yank like you !
Ok we get it . Give us a glimpse of what’s happening in Belgium , in regard to energy policy, political dynamics, inflation > thanks. PS USA will send you a C.A.R.E. package
You got it ? I don t think you ever get anything….. Why would I answer stupid questions btw ?
Mish
1 year ago
The ‘Great Leap Forward’-famine in China from 1959-61 was the single largest famine in history in terms of absolute numbers of deaths.
The last major famine occurred between 2011 and 2012 in the Horn of Africa and primarily affected the countries of Somalia, Ethiopia and Kenya. At its peak, more than 13 million people were in need of emergency assistance.
Not to mention the Holodomor where Stalin arranged the death on purpose of at least five million Ukrainians by famine between 1932 and 1933. No wonder that the Ukrainians don’t want the Russians back.
Depends which part of Ukraine you are talking about, and even then…. z Elensky got rid of the opposition parties and has now become an outright fn dictator …a US supported one of course , so that s fn ok !
I tried looking it up with google translate but there’s a pay wall so forget that. I’m not convinced it won’t be the greatest famine in recorded history, but I’d like to see the perspective of the person who said it.
I think people are skeptical because it’s never happened like this in our lifetimes, which is a really bad argument against it.
In reality, everything does, in fact, seem to be pointing to severe trouble for the food supply, including the things I previously listed. Whether or not that results in severe famine in parts of the world is debatable, but it’s not really debatable that there are really really dark clouds ahead for food.
Africa is in and out of famine all the time. Hardly solely due to nature, but everything to do with “family planning”.
dbannist
1 year ago
I’m going to take a look at the source of the quote “the biggest famine in history.”
That’s quite a staggering statement if true. I expect famine to occur in sub-Saharan Africa but not the industrialized world, at least not this year. If fertilizer inputs continue to rise in price and production continues to decrease it will be very very bad.
This is happening in concert with a massive water shortage in the Horn of Africa (they are already in severe famine), a massive water shortage in the American West with Powell and Mead nearly empty, and, far worse, continued mining of water aquifers around the world.
The war in Russia is the immediate threat to food. The fertilizer shortage is the bigger story from the war. However, it’s the falling water tables that are the slow moving catastrophe that will result in ultimate famine. It will happen slowly, and then all at once.
printing money as if there s no tomorrow has its consequences….sooner or later… there’ s no way out of it. Pity that our clever, overpaid ‘experts’ in charge, had no fn clue !
I’m not a farm policy expert but aren’t there government programs which pay farmers to idle farm land? Both for environmental reasons and to limit supply and raise prices. Maybe they could end those programs at least until Russian and Ukrainian supplies come back.
I keep saying they should ban SPECULATIVE trades on all commodity derivatives by those that take no delivery of the actual product. This would be a real first step towards bringing prices of all commodities down. Let’s find out how much price inflation is because of the speculators.
How much or the fertilizer market does the fertilizer derivative market actually control? Probably much less than their marketing document claims. Probably much less.
Who knows. But let’s ban speculative derivative trades on all commodities to try and control inflation in a different way. I’m not talking about the actual companies that take delivery. I’m talking about hedge funds and other traders that aren’t in the business of buying the actual underlying commodity in question.
Probably no need to ban them if you can control them. The big players in the trade are probably the big producers and the big users with a some banks and traders sprinkled in. In that it is like the gold, copper and other commodity markets.
Dutoit
1 year ago
Probably this could progress like this : Russia stops every exports to “unfriendly” countries (even gas to Europe). And supplies foods and fertilizers to Africa and some other poor countries at good price (the price before the crisis, of course not in € or $).
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Sure, the world is dangerously close to mass famine. But that’s mostly because many countries have likewise chosen to indulge overpopulation and food import dependence. If it doesn’t happen now, it will happen in 4 years, or 10, or 20 and the further into the future you go with that, the more people will be affected. Bad policies should be stopped as soon as they’re shown to be bad. They’re showing exactly that right now in so many ways.
link to scientificamerican.com
I think people are skeptical because it’s never happened like this in our lifetimes, which is a really bad argument against it.
In reality, everything does, in fact, seem to be pointing to severe trouble for the food supply, including the things I previously listed. Whether or not that results in severe famine in parts of the world is debatable, but it’s not really debatable that there are really really dark clouds ahead for food.
That’s quite a staggering statement if true. I expect famine to occur in sub-Saharan Africa but not the industrialized world, at least not this year. If fertilizer inputs continue to rise in price and production continues to decrease it will be very very bad.
This is happening in concert with a massive water shortage in the Horn of Africa (they are already in severe famine), a massive water shortage in the American West with Powell and Mead nearly empty, and, far worse, continued mining of water aquifers around the world.
The war in Russia is the immediate threat to food. The fertilizer shortage is the bigger story from the war. However, it’s the falling water tables that are the slow moving catastrophe that will result in ultimate famine. It will happen slowly, and then all at once.