Category Archives: Getting Prepared

Food Prices Expected to Rise Sharply

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Food inflation has been a reality for a while and the government along with a compliant media has been delaying telling you the real facts. It’s been a bad year for crops and the law of supply and demand is kicking in:

Corn is up 45 percent the last three months. We haven’t seen cotton prices this high since after the Civil War. Soybeans are up. Oil is up. Metals are up. So are coffee and cocoa.

In this era of massive liquidity, everything is up, except for food prices—specifically processed food (made from many of the same commodities and other ingredients whose prices have risen).

According to the USDA, that is going to change. In its most recent CPI report for food, the USDA reported that prices are expected to rise in 2011.

For all food, prices are expected to rise two to three percent, which is double the levels of 2010. Meat prices are expected to rise up to 3.5 percent, and dairy 5.5 percent.

“The forecast for 2011, that remains unchanged, but it’s moving to the higher part of that range,” said Ephraim Leibtag, who serves as a senior economist for the USDA and out together the report. He added, “The potential to go above that is more likely if current commodity price increases remain where they are or rise even more.”

CNBC does it’s best to put lipstick on this pig by reminding us that we’re “coming off historic lows” in commodities but all that really means is we were living in a time of plenty and now we’re not. It’s time to start putting away a supply of long lasting foods that can be stored without refrigeration. Think canned vegetables, pasta (properly stored) and canned sauces.

Emergency food supplies are also available at decent prices. A 2.25 lb can of powdered eggs can be purchased for about $25 on Amazon and that’s the equivalent of 90 eggs and will last for several years unopened and up to a year once opened. Gardeners may want to order bulk supplies of extra seeds now to start planting next spring because seed prices are going to skyrocket once the Americans feel the sticker shock of food inflation. Mylar food storage bags and a stash of food grade five gallon buckets are cheap and effective way to start storing staples that are cheap now (like pastas and rice) but are going to get more expensive as our economic collapse accelerates.

The warnings are all there. Don’t get caught with no food in the house when we start to see food prices increase beyond the reach of the average American.

A Quick Warm Up by Zuzana

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Zuzana is the Internet phenomenon who is the star of Body Rock TV. Her claim to fame is filming herself doing workouts 99% couldn’t hack on your best day, and thus shaming us all into getting a little more exercise.

A lot of supposed survivalists are in shockingly bad shape. If you believe the world is about to devolved into total anarchy or that a massive solar flare is going to send us back into the pre-industrial age getting in shape should be one of your primary concerns. To get in shape you have to start with the basics including a good warm up routine so here you go:

Finding Wealth at Yard Sales

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Backwoods Home has a great article on buying silver and gold jewelry at yard sales. Even with commodity prices at an all time high many people running yard sales are simply putting out silver bracelets and earrings at bargain prices.

Jewelry is portable wealth, and unlike the hoard f gold or silver bullion many have can be easily transported, traded and pawned so start looking for some piece now that will go in your bug out bag or on your person. I would hit more yard sales myself if wasn’t a late sleeper. Get to the yard sales early for the good stuff.

Cotton Reaches 140 Year High!

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Bad news from WSJ:

Cotton prices touched their highest level since Reconstruction on Friday, as a string of bad harvests and demand from China spark worries of a global shortfall.

The sudden surge in prices—cotton has risen as much as 56% in three months—has alarmed manufacturers and retailers, who worry they may be forced to pass on higher costs to recession-weary consumers.

The December cotton contract hit $1.1980 a pound minutes after the opening of trading on the IntercontinentalExchange on Friday. It is officially the highest price since records began back in 1870 with the creation of the New York Cotton Exchange.

[…]

“I’ve seen a lot of big moves, and this exceeds everything,” said Sharon Johnson, senior cotton analyst at First Capitol Group, a financial adviser. “It’s not something you’re going to see again in your lifetime.”

The cotton surge is part of a broad-based commodities rally since the beginning of the year, underpinned by fears over a weakening dollar, healthy demand from emerging markets and various weather-related supply disruptions. Along with cotton, prices of so-called soft commodities such as sugar, orange juice and coffee all have soared, adding to concerns that consumers might soon be paying higher prices for daily necessities.

For the apparel industry, rising prices have upended roughly two decades of cheap cotton. Consumers have become used to relatively low prices, making it hard for garment producers to pass on the rising costs, especially as the economy struggles to recover.

With colder winters on the way more expensive clothing is the last thing Americans need, especially Americans with children who need yearly wardrobe replacements. Hit those sales at the mall now.