Is it possible for a nation such as America to face a food shortage in the future?
The answer to this is yes.
The NY Sun recently ran a story about the surfacing of some food shortages in some areas of the US. It appears that this may be a precursor of what is to come. How can this happen? The answer is in the fact that there are several things that contribute to shortages in whole.
For the most part there has always been enough food for everyone on the planet; this is beginning to change however. The world as a whole is finding itself coming close to maximum capacity and our commodities are becoming more difficult to obtain. Oil is one of the largest commodities we are having difficulty coming by easily. It isn’t that we are out of oil, but that the world has tapped out most of the easily accessible oil fields. We have much more oil it is just more expensive than its worth to extract it which puts it out of reach to us. Gas prices will likely reach $6.00 per gallon in 2009.
The same situation applies to ore mines. There is only so much ore that we are able to mine even if there is more ore available; if it is not economically feasible to mine it we cannot obtain it. Basically this means that there is just so much supply available at affordable prices. The higher the price the fewer people that can afford it and the more supply there will be available just beyond reach.
Food is included in this variable. Despite the land available around the world there is only so much food available. Previously the US had a very strong currency; however, this is changing today. The value of the US dollar has been spiraling downward over the last few years. Other countries are now able to out bid the United States for the commodities we need. China is leading the world in outbidding for precious commodities.
The decline of the US dollar will continue as the US continues to print money which results in the value plummeting. With the value of currency declining, the US may find itself with a lessened ability to be the top bidder and may be unable to obtain its resources.
The above scenario regarding area food shortage is the predecessor of a number of very shocking changes America is heading for. As a country we have overspent and under managed our budget for decades and we are going to be faced with a grim reality.
Prepare yourself; Bush’s depression is going to be difficult.
Tags: Financial Money Matters