Skip to comments.New world order will see farmers and miners in charge
Posted on 01/04/2011 2:53:42 PM PST by FromLori
All these people who got MBAs made a mistake, according to Jim Rogers, the commodities investor, at the Reuters Investment Outlook Summit last month.
The City of London and Wall Street are not going to be great places to be in the next two or three decades. Its going to be the people who produce real goods in charge the farmers and the miners.
With commodities up 42pc since the beginning of last year, according to a basket tracked by Reuters, his words certainly ring true for 2010. An array of metals from gold to copper have hit record highs, while palladium has doubled and silver is up 83pc.
Coal, potash and other mining companies have also been a key target of merger and acquisition activity.
We believe this isnt just a short-term rally, and would argue that commodities will have another bull run this year, driven by fundamental demand from emerging economies principally China.
(Excerpt) Read more at telegraph.co.uk ...
Shades of ‘Animal Farm???’
Better than the professoriat.
Just bought a 12 pack of beer for the 1st time in a month. Pacifico Clara and Negro Modelo were both up a $1 since last time.
Well, I must say, I don’t think that JP Morgan’s massive naked silver shorts can be working out for them very well recently.
Yeah. The beer at my supermarket has been going up a buck every time I turn around. I lay in a couple of cases, but there’s a limit to how long it will keep. Maybe a year or so in the cellar.
Cool. I start farming our side lot this year - twelve 10x4 raised beds, six fruit trees, and some table grapes.
As a farmer, I’m not complaining.
That doesn’t make sense. If commodities and real goods are where the money is ... that’s where Wall Street will invest. High commodities values may help miners and farmers, but it won’t hurt Wall Street (where much of the ownership of mining and farming operations reside).
I think you can add OIL to this.
I don't drink beer but I noticed that bacon is up more than a dollar a pound over the past couple months.
Who can live without bacon?
Couldn’t be any worse than landscape artist and chicken farmer. Jokes aside, the self anointed social architects in charge now are right down there with child molesters on the ethics scale.
"Have you heard the news? The dogs are dead..."
Get the book by conservative author Taylor Caldwell called “The Devils Advocate”. Libs hated her, they still do.
She was right 60 years ago.
retailers of the world unite!! When the revolution comes we’ll all have twenty paid weeks off a year, a russian bride, and the right to kill any customer who dares make a return
So all the small farms have been bought up by large corporations and get subsidies (cotton, rice, soybeans and wheat) from the government. Guess someone was pretty damned smart.
Yeah, but if you are not a farmer that goes along with the agenda, they will flatten you.
They should have said it helps Mining Companies, not miners. Hard-rock miners out here are getting bonus's cut, benefits cut, insurance cost rising, just like everyone else.
High commodities values make good miners more in-demand ... it’d help both the company and the miner.
It's not going to be Little House on the Prairie.
It's going to be Mao's Great Leap, with Goldman Sachs and George Soros playing the part of Mao and the Politburo.
They did add Oil...
“Oil will hit $100
All the signs suggest that oil will break out of the $70-90 trading range seen this year. There is little suggestion that OPEC, the worlds powerful cartel of producing countries, will act swiftly to increase production and dampen prices.”
Other things too if you read it in full and speaking of Oil they are already spending the money they plan on making.
Oman doubles spending as oil revenues surge
Bacon has been up for awhile. Due to feed grains and regular grains going up?
"Pork bellies! I have a hunch something exciting is going to happen in the pork belly market this morning."
Yeah, I know. I’m paying off debt as fast as I can. We already have a wheat contract and chile contract, will soon be getting a milo contract and are considering a cotton contract. So, God willing, we should be okay this year if the weather cooperates.
I did foresee inputs going through the roof and have already purchased 50% of our fertilizer.
LOL. That was pretty funny movie.
Damn. I hate it when you’re right and concise.
If all the Wall Street and London MBAs went the way of the Arkansas red-winged blackbirds, few people would notice—and fewer would care about them than cared about the blackbirds.
I just noticed that 1 lb. Oscar Meyer bacon was $3.99 at W-M, next day it was $4.99 and very soon after was $5.24 and I and my grand son loves our bacon.
Possibly we could quit burning corn for fuel and feed it to the hogs and the price of both might come down.
I have been seriously considering learning how to brew my own beer. Just in case!
Only in America would we burn food, corn, for fuel.
It is like selling your roof for a dollar then bitching because it was raining.
Have you read the summary of S.510/HR.2749?
This monstrosity passed the House 1-1/2 years ago. It was the FDA takeover over of all U.S. food production. The Senate toned it down a “little” but it is still a prescription for serious hunger in the nation. It was first passed by the Senate in a voice vote (in the Lame Duck Session), but later revoted when they realized it had to originate in the HR. All this was sold by the scare of poisoning of the food supply by terrorists.
The solution is more local food production, but the governments solution is push all of the little producers out and turn it over to Global Ag. If you are hungry in 2011, don’t blame a farmer, blame the lying POLs. If your food costs go up by 50% in 2011, don’t blame a farmer, blame the lying POLs.
You are warned about the consequence. But not by the MSM. They are totally silent. The POLs are also totally silent.
Just ask how well this worked out in China or the Soviet Union.
I did read that he signed it into law just today you know.
President Obama signs into law sweeping food safety bill expanding FDAs powers
We have enough land to grow enough for our self and kids/grandkids and some to share if worse comes to worse thankfully.
So do we. And the farm equipment.
And we have a private meat processing operation on our farm. We make beef sausage (for our own us). And we have the cattle. Tons of wild hogs plague this area.
They are still refusing to listen to us, after the Nov. Elections. How large a board do we need to get the point across?
The entire American hog indusry nearly went bankrupt just last April, 2010, due in large part to an enormous oversupply of pork. Several of the largest hog producers in the southeast did not make it and are out of business, barns are empty.
The best producers are now clearing $50 per 250 pound market hog. There's still too much pork around.
America has enormous feedstuff surpluses, huge meat surpluses.
Just a month ago Successful Farmer had a special issue with an article entitled "Boatloads of Meat" detailing how important exports of our surplus meat is the continued viability of the AMerican food industry.
Most Freepers have no idea at all of how much extra food and feedstuffs we have.
See my tagline.............it's been true for more than 50 years.
The PA Farm show is next week in Harrisburg and you will hear it all over the building.
Not questioning or doubting any of your statements but why is it as you say, there is an excess of hogs, that the price at the market is rising. That’s opposite of the law of supply and demand.
I know according to your post that farmers aren’t getting the extra money. Where is it going? The price of fuel to transport all that meat? The retailers making more money?
There is an excess of pork in the sense that the profit margins for the producers are too small. It’s slowly being ‘corrected’, but with each producer making his own decision it may take some time. Everybody has a lot of fixed overhead, and so producing an extra 5% costs only the cost of production, and everyone in farming is an optomist about future prices. Knowing that, I don’t see production falling, except as those who are driven out of business don’t send hogs to market.
Then, those production facilities will be picked up by new optomistic owners, and we’ll see the cycle continue.
I buy pork chops now, I used to be a producer, and they are dirt cheap at the meat counter.
Transportation (fuel)costs are going to be a signifcant factor. It cost more to harvest the corn, more to haul it to the grain handling, more to truck hogs to market, ets, etc.
Not sure if the retailers are taking a bigger profit, but my sense is that they’re not.
That’s not a very concise answer, but I hope it helps.
An FYI: Food prices, as a percent of the average persons income, have fallen 40% in the last 40 years.
Pork-belly contracts have been traded on the Chicago Mercantile Exchange since 1961. But The Wall Street Journal reports the pork-belly market is in danger of becoming extinct. Last month, the exchange traded just six pork-belly contracts.
In case you're wondering, a pork-belly is the frozen slab of meat that bacon comes from. Farmers sell their pork bellies far in advance to lock in prices. So why is the pork-belly contract dying out? Well, it's not that we're giving up bacon. But now we eat it year-round so there is less need for futures contract.
Just read this and it may have something to do with the high price of bacon.
“Pork-Belly Market May Go Belly-Up”
you nailed it !
I need to correct my math mistake on the earlier post to you.
In 1970 food costs comprised about 14% of the typical families income, today it’s 10%.
That’s a 30% reduction in the last 40 years, not 40%.