The minutes of the Fed’s September policy meeting, appeared to confirm that the US central bank would soon embark on a fresh round of quantitative easing (printing more money).
That’s right, we can expect more quantitative easing from the Federal Reserve which means that more money will be printed. When this happens the U.S. Dollar Index will decline and lose value. Since June 7th, 2010 the U.S. Dollar Index has declined by nearly 12.0 percent. This alone will make goods such as oil, gasoline,and food more expensive for an already strapped U.S. consumer.
Many in the mainstream media tell us not to worry about inflation. They tell us that inflation is low and are more worried about deflation. Inflation, excluding food and fuel costs, will rise 1.2 percent in 2011 and 1.5 percent in 2012 on average, according to a recent Bloomberg survey.
Improved retail sales have persuaded many pundits that the U.S. recession is over and that inflation threats have been neutralized. However, they ignore the fact that 58% of February’s year-over-year increase in retail sales was not from improving consumer confidence, but from surging food and gasoline prices.
Meanwhile the Federal Reserve’s own St Louis branch has indicated that it believes turning on the printing presses for another massive round of quantitative easing would not only be useless, but may very well do more damage to the economy over all.
Daniel Thornton of the St Louis Fed said in a report titled “Would QE2 Have a Significant Effect on Economic Growth, Employment, or Inflation?”
“Some analysts are already concerned about the potential inflation consequences of the Fed’s previous QE measures. To the extent that QE2 would exacerbate those concerns, it could raise inflation expectations.”
An Impending Food Crisis
The National Inflation Association (NIA) has been warning of a sharp upswing in U.S. food inflation for quite some time now.
Here are some startling year-over-year price increases in the U.S. markets:
- Fresh and dry vegetables up 56.1%
- Fresh fruits and melons up 28.8%
- Eggs for fresh use up 33.6%
- Beef and veal up 10.7%
- Dairy products up 9.7%
Rising prices, combined with widespread unemployment, have pushed record numbers of Americans onto the food stamp program. After the 14th consecutive monthly increase, 39.4 million Americans are now enrolled in the program. This figure is up 22.4% from one year ago, and the U.S. government is now paying out more to Americans in entitlement programs than it collects in taxes.
The United Nations has warned of a food shortage crisis and has drawn up plans for food rations which will hit even middle-class suburban populations as inflation and economic uncertainty causes the prices of staple food commodities to skyrocket.
As the U.S. grapples with a recession and, as many analysts have warned, a potential second great depression, those long scoffed at for hoarding vast quantities of storable food may unfortunately be able to say “I told you so” if the dollar continues to deteriorate and people begin to be priced out of the food market.
Protect Your Family with Real Money and Storable Food Supplies
Not only is it time to protect your wealth with precious metals such as gold and silver, but you should also be protecting your family with storable foods.
Financial advisers outside of older channels that have always recommended to have food reserves, are increasingly talking about the importance of having food reserves on hand. About two years ago, if you remember, the banks came within one hour or so from closing worldwide. The reality of the necessity of having some sort of food reserves is hitting home with many Americans. This is why eFoods Global is very appealing to so many.
eFoods Global is helping Americans become food and financially independent. People are accumulating food supplies and reserves for a variety of reasons. Having adequate supply of long-lasting nutritious food provides a safety net for you and your family for many years to come.