Friday, November 5, 2010


I received this e-mail today and I thought I'd pass it along:

"NIA Projects Future U.S. Food Price Increases

The National Inflation Association today announced the release of its report about NIA's projections of future U.S. food price increases due to the massive monetary inflation being created by the Federal Reserve's $600 billion quantitative easing. This report was written by NIA's President Gerard Adams, who believes food inflation will take over in 2011 as America's greatest crisis. According to Mr. Adams, making mortgage payments will soon be the last thing on the minds of all Americans. We currently have a currency crisis that could soon turn into hyperinflation and a complete societal collapse.

"For every economic problem the U.S. government tries to solve, it always creates two or three much larger catastrophes in the process," said Adams. "Just like we predicted this past December, the U.S. dollar index bounced in early 2010 and has been in free-fall ever since. Bernanke's QE2 will likely accelerate this free-fall into a complete U.S. dollar rout," warned Adams.

NIA projects that at the average U.S. grocery store it will soon cost $11.43 for one ear of corn, $23.05 for a 24 oz loaf of wheat bread, $62.21 for a 32 oz package of Domino Granulated Sugar, $24.31 for a 32 fl oz container of soy milk, $77.71 for a 11.30 oz container of Folgers Classic Roast Coffee, $45.71 for a 64 fl oz container of Minute Maid Orange Juice, and $15.50 for a Hershey's Milk Chocolate 1.55 oz candy bar. NIA also projects that by the end of this decade, a plain white men's cotton t-shirt at Wal-Mart will cost $55.57.

NIA's special U.S. food price projection report is now available to download for free at:

The report highlights how despite cotton rising by 54%, corn rising by 29%, soybeans rising by 22%, orange juice rising by 17%, and sugar rising by 51% during the months of September and October alone, these huge commodity price increases have yet to make their way into America's grocery stores because corporations have been reluctant to pass these price increases along to the consumer. In today's dismal economy, no retailer wants to be the first to dramatically raise food prices. However, NIA expects all retailers to soon substantially raise food prices at the same time, which will ensure that this Holiday shopping season will be the worst in recorded American history.

If you are an NIA member and have a question about the U.S. economy or inflation, please browse through our ‘NIAnswers’ database and if your question hasn’t already been answered there, you can either submit it on ‘NIAnswers’ or email it to us at:

If you are a member of the media and would like to schedule an interview with NIA’s President Gerard Adams about inflation, please send an email to or if it is urgent you can call us directly at 1-888-99-NIA US (1-888-996-4287)."

(Make sure to follow the link contained in the letter; it's worth the read.)

Take this for what it's worth. I think that, while the specific numbers may be off, the general information relating to the coming hyperinflation of food and other commodities is on the money.

Look, you don't have to be an economist to understand this. As a matter of fact, it may be better if you aren't.

We continue to flood the market with dollars. More of anything means that it has less worth. As the dollar continues to decline in value speculators (investors) will look for someplace to put their money to keep it safe or grow it (that used to be U.S. Treasuries; not so much anymore.
The Fed is poised to become the largest purchaser and owner of U.S. debt. No one else wants it.). That something will have to have intrinsic value so commodities such as food, fuel and precious metals make the most sense. As demand for commodities continues to rise the price will go up. And food is the one that will go up the fastest.

Not only is there demand from investors but we are facing a food shortage globally. There have been crop failures around the world and the third world, the people that have been living on rice for millenia, are now, because of their growing economies and wealth, demanding more meat and other foods we consider staples. This is placing upward pressures on pricing as well.

So get ready for the real possibility that food WILL consume nearly all of your disposable income.

And the really cool part is that as commodities rise in price asset deflation will occur big time. When a loaf of bread costs more than your house how much is your house worth?

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