Have to disagree with you and WILL, even though I send them money.
Grain futures have already risen 20% on the Chicago Board of Trade, the largest jump since the 1970s. The American grocery suppliers do something interesting when wheat prices rise--they don't raise prices, they make the size of their packaging smaller. The typical consumer won't even notice at first--they didn't a couple of years back when they did it.
The Russian situation is more serious and more extensive than many analysists realize because of their history and traditions--bread = stability.
Keep in mind what set off the bursting of the housing bubble--a sudden rise in gasoline prices in America causing American consumers to start holding on to their cash, rather than spending it full tilt. Our current economic situation seems to magnify the ripples caused by commodity spikes into tidal waves.
no subject
Grain futures have already risen 20% on the Chicago Board of Trade, the largest jump since the 1970s. The American grocery suppliers do something interesting when wheat prices rise--they don't raise prices, they make the size of their packaging smaller. The typical consumer won't even notice at first--they didn't a couple of years back when they did it.
The Russian situation is more serious and more extensive than many analysists realize because of their history and traditions--bread = stability.
Here's STRATFOR's take on the wheat:
http://www.stratfor.com/weekly/20100809_drought_fire_and_grain_russia?utm_source=GWeekly&utm_medium=email&utm_campaign=100810&utm_content=readmore&elq=fec9923a26b84d97a893a1caefad4379
Keep in mind what set off the bursting of the housing bubble--a sudden rise in gasoline prices in America causing American consumers to start holding on to their cash, rather than spending it full tilt. Our current economic situation seems to magnify the ripples caused by commodity spikes into tidal waves.
Tom