ABOUT THAT UNDER CONTROL INFLATION

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Posted on 16th October 2012 by Administrator in Economy |Politics |Social Issues

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Today’s CPI misinformation report dutifully reports that inflation has been virtually non-existent over the last 12 months. The charts below beg to differ. But Bernanke doesn’t think food, energy and copper are that important to the average schmuck. With annual increases ranging from 4% to 35% for things we need everyday, how could the CPI only show annual inflation of 2.0%? We know from prior posts that 24% of the CPI is made up of owners equivalent rent. I keep reading that rents are skyrocketing by 10% and home prices are increasing. So, why isn’t this being heavily reflected in the CPI? The drones at the BLS say owners equivalent rent is only up 2.1% in the last year. The people running this country have no problem lying out of both sides of their mouth, saying housing is recovering strongly but their is no inflation in housing or rent.

I’ll tell you why the numbers don’t make sense. Because the Federal Government and the drones at the BLS are lying about the true inflation figures. They use their little regression models to manipulate the data and report tame inflation, when anyone with half a brain that fills up their tank, pays their utility bills, or goes grocery shopping knows that inflation is running north of 5%. The BLS is actually reporting that your food costs have only gone up by 0.8% in the last year.

Even the commodities below that show modest year over year changes should worry you.

  • Heating oil is up 9% YTD and natural gas has surged 21% since May, just as we enter what is expected to be a colder than normal winter. Those senior citizens who are getting a $15 increase in their SS checks per month will just have to bundle up.
  • Unleaded gas is up 19% YTD and 2012 has seen the HIGHEST average price in the history of the U.S.
  • The huge increases in wheat, soybeans and corn due to the drought have resulted in some of the lowest inventories in history. The true impact of these price increases will really hit in 2013. Farmers have had to slaughter their cattle and hogs earlier to save on feed costs and this has resulted in meat prices temporarily declining. Prices for meat will soar next year as their is less supply. The other side effect will be unrest around the world, as food costs account for 50% of the budgets for poor people around the world.

The weightings in the CPI calculation are a joke. They have the balls to tell you that motor fuel only makes up 5% of your costs and food at home less than 9% of your costs. Let’s examine those assumptions. The median household income is $50,000. A family of four with both parents working would drive on average 12,000 miles per year for each of their two cars. That is 24,000 miles per year at 20 mpg equaling 1,200 gallons of gas used per year. At $3.80 per gallon, that would be an annual cost of $4,560. That would be 9.1% of your costs for a normal family. That is 80% more than the BLS weighting for motor fuel.

A normal family of four, based on my grocery expenditures of $150 to $200 per week, would spend $7,800 to $10,400 per year for food at home. Even using the low figure, it comes to 15% for a median income family. That is 67% higher than the BLS weighting. I would urge you to put your own circumstances into these equations and figure out if the BLS is full of shit. Thinking is essential to defeating the powers that be.

OIL

HEATING OIL

UNLEADED GAS

NATURAL GAS

COPPER

CORN

SOYBEANS

WHEAT

THE DROUGHT AIN’T OVER

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Posted on 28th September 2012 by Administrator in Economy |Politics |Social Issues

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For the math challenged, the corn inventory was 12% below what was expected by “experts”. The implications of record low inventories of wheat and corn will be far reaching, violent and damaging to the world. Stock up.

U.S. corn, wheat futures jump on USDA report

By MarketWatch

CHICAGO–U.S. corn and wheat futures jumped Friday morning after the U.S. Department of Agriculture reported domestic inventories of the two grains at lower-than-expected levels, while soybean futures traded mixed due to a higher-than-expected inventories figure for the oilseed.

The USDA reported that corn stocks as of Sept. 1 were 988 million bushels, well below the average analyst forecast of 1.126 billion bushels in a Dow Jones Newswires poll this week.

The USDA reported stocks of wheat were 2.104 billion bushels, below the average analyst prediction of 2.281 billion bushels.

Soybean inventories as of Sept. 1 were 169 million bushels, above the average analyst prediction of 132 million bushels.

Several minutes after the report’s release, December corn futures were up 21 cents or 2.9% at $7.37 1/4 a bushel.

CBOT December wheat was up 18 3/4 cents or 2.2% at $8.74 1/4 a bushel.

November soybeans were up 2 1/2 cents or 0.2% at $15.73 1/4 a bushel.

–Ian Berry contributed to this article.

 

Corn hits limit up after USDA supply report

SAN FRANCISCO (MarketWatch) — Corn futures on Friday rose to the maximum allowed by the exchange after a U.S. Department of Agriculture report showed estimates for corn supplies well below expectations. Corn for December delivery (CBC:CZ2) rose 40 cents, the limit set by the CME Group Inc. (NASDAQ:CME) , or 5.6% higher at $7.56 a bushel. The USDA report earlier Friday said inventories of corn were at 988 million bushels, compared to expectations of 1.13 million bushels in a Dow Jones Newwires analyst poll.

 

IS MONSANTO KILLING US?

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Posted on 20th September 2012 by Administrator in Economy |Politics |Social Issues

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Monsanto Roundup weedkiller and GM maize implicated in ‘shocking’ new cancer study

19 Sep 2012 | By Elinor Zuke

The world’s best-selling weedkiller, and a genetically modified maize resistant to it, can cause tumours, multiple organ damage and lead to premature death, new research published today reveals.

In the first ever study to examine the long-term effects of Monsanto’s Roundup weedkiller, or the NK603 Roundup-resistant GM maize also developed by Monsanto, scientists found that rats exposed to even the smallest amounts, developed mammary tumours and severe liver and kidney damage as early as four months in males, and seven months for females, compared with 23 and 14 months respectively for a control group.

“This research shows an extraordinary number of tumours developing earlier and more aggressively – particularly in female animals. I am shocked by the extreme negative health impacts,” said Dr Michael Antoniou, molecular biologist at King’s College London, and a member of CRIIGEN, the independent scientific council which supported the research.

GM crops have been approved for human consumption on the basis of 90-day animal feeding trials. But three months is the equivalent of late adolescence in rats, who can live for almost two years (700 days), and there have long been calls to study the effects over the course of a lifetime.

The peer-reviewed study, conducted by a team of researchers at the University of Caen, found that rats fed on a diet containing NK603 Roundup resistant GM maize, or given water containing Roundup at levels permitted in drinking water, over a two-year period, died significantly earlier than rats fed on a standard diet.

Up to half the male rats and 70% of females died prematurely, compared with only 30% and 20% in the control group. Across both sexes the researchers found that rats fed Roundup in their water or NK603 developed two to three times more large tumours than the control group. By the beginning of the 24th month, 50-80% of females in all treated groups had developed large tumours, with up to three per animal.

By contrast, only 30% of the control group were affected. Scientists reported the tumours “were deleterious to health due to [their] very large size,” making it difficult for the rats to breathe, [and] causing problems with their digestion which resulted in haemorrhaging.

The paper, published in the scientific journal Food and Chemical Toxicology today, concluded that NK603 and Roundup caused similar damage to the rats’ health, whether they were consumed together or on their own. The team also found that even the lowest doses of Roundup, which fall well within authorised limits in drinking tap water, were associated with severe health problems.

“The rat has long been used as a surrogate for human toxicity. All new pharmaceutical, agricultural and household substances are, prior to their approval, tested on rats. This is as good an indicator as we can expect that the consumption of GM maize and the herbicide Roundup, impacts seriously on human health,” Antoniou added.

Roundup is widely available in the UK, and is recommended on Gardeners Question Time. But this also represents a potential blow for the growth of GM Foods.

With the global population expected to increase to nine billion by 2050, the UN has said that global food production must increase by 50%. And a consultation led by DEFRA entitled Green Food Project recommended as recently as 10 July 2012 that GM must be reassessed as a possible solution.

Some 85% of maize grown in the US is GM, while 70% of processed foods contain GM ingredients without GM labelling. In the UK and Europe GM maize is not consumed directly by humans but is widely used in animal feed without the requirement for GM labelling.

Antoniou said there could be no doubting the credibility of this peer-reviewed study. “This is the most thorough research ever published into the health effects of GM food crops and the herbicide Roundup on rats.”

Led by Professor Gilles-Eric Seralini, the researchers studied 10 groups, each containing 10 male and 10 female rats, over their normal lifetime. Three groups were given Roundup – developed by Monstanto – in their drinking water at three different levels consistent with exposure through the food chain from crops sprayed with the herbicide.

Three groups were fed diets containing different proportions of Roundup resistant maize at 11%, 22% and 33%. Three groups were given both Roundup and the GM maize at the same three dosages. The control group was fed an equivalent diet with no Roundup or NK603 containing 33% of non-GM maize.

A spokesman for Monsanto said: “We will review it thoroughly, as we do all studies that relate to our products and technologies.”

Watch the video: experts discuss the significance of the findings

EPA THROWS ETHANOL ON THE FIRE OF SOARING FOOD PRICES

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Posted on 18th September 2012 by Administrator in Economy |Politics |Social Issues

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Food prices in 2013 were already poised to soar because of the drought and lowest supply of corn in decades. Revolutions and turmoil are breaking out all over the world. And what does Obama’s EPA do? They mandate a 20% increase in the usage of bio-fuels next year. They are mandating that more of our limited supply of corn be converted to a fuel that reduces gas mileage and requires more energy to produce than it provides. This mandate will drive prices higher, reduce supply, and result in people in other countries dying from starvation. This decision is so idiotic and foolish, it’s almost as if Obama is trying to create a worldwide shitstorm.

EPA Raises 2013 Biofuels Target

WASHINGTON, D.C. — The U.S. Environmental Protection Agency (EPA) on Friday increased 2013 biofuel targets.

The EPA is requiring refiners to blend 1.28 billion gallons of biodiesel into traditional transportation fuel next year, vs. a 1-billion gallon requirement for 2012.

According to EPA Administrator Lisa Jackson, the new biofuel blending requirement meets goals set forth by Congress and is “another step that strengthens America’s energy security by reducing dependence of foreign oil.”

According to Agriculture Secretary Tom Vilsack, the new blending requirements will also create more rural jobs. “Over the past three years, we have doubled generation from renewable energy and today’s announcement by the EPA will ensure that we are continuing to utilize biodiesel to help meet our energy needs, create jobs and strengthen the rural economy,” he said, as reported by The Hill.

Although the EPA believes the increased blending requirement, part of the renewable fuel standard (RFS), is crucial to the growth of alternatives fuels, not everyone is convinced. Republicans have criticized the move as a way to prop up the biofuels industry, the website reported.

In addition, the American Petroleum Institute (API) has sued the EPA in regards to the RFS. “EPA’s mandate will unnecessarily raise the cost of making diesel fuel,” Bob Greco, API’s downstream group director, said in a statement. “By picking energy winners and losers, the EPA takes away consumer choice and further threatens public acceptance of biofuels.

DROUGHT SILVER LINING

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Posted on 12th August 2012 by Administrator in Economy |Politics |Social Issues

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Leave it to the mainstream media to try and spin the positives from the worst drought since the 1930s. Food prices for produce and meat are headed much higher. Ethanol prices are soaring and will result in higher fuel prices at the pump. Poor people around the world will starve as they cannot afford to pay the higher prices. This will lead to revolutions and riots.

But at least there aren’t any tornadoes and with no rain there is less toxic runoff into the Gulf of Mexico. We got that going for us. See. It ain’t so bad.

Woe and opportunity: Tales from historic drought

(AP)  The United States is in the midst of the worst drought in decades, and the dry  weather and soaring temperatures are taking a toll on people living  and working in Ohio west to California and Texas north to the Dakotas. Farmers  have watched their corn wither and their cattle go hungry. Homeowners have seen  their lawns turn brown and gardens wilt. Communities  in the Midwest that rarely experience water shortages have enacted restrictions,  and businesses are looking for ways to stay afloat as sales fall off. Here are a  few of their stories:

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WATER  FOR QUARTERS

The  creeks and ponds that Cimeron Frost’s 300 cows and calves drink from in central  Illinois are almost dry.

So  each day, he takes rolls of quarters to what amounts to water vending machines  in nearby towns. He drops in the coins, collects the water in metal and plastic  tanks and tows it on trailers to his pastures around the town of Tallula. He  hauls 4,000 gallons a day in four separate trips, dumping or piping the water  into big, galvanized-steel troughs for his herd to drink.

Even  at 40 to 50 gallons per quarter, it adds up.

“It  takes a little over two rolls of quarters a day, plus probably $40 in gasoline a  day, to water all our cows in all our locations,” Frost, 65, said. At $10 a  roll, that’s about 60 bucks a day, or $420 a week, and he’s been hauling every  day since mid-June.

He  estimates he has spent about $2,700 so far. But he worries more about what could  lie ahead.

“If  we don’t have a wet fall and a wet spring, we could be in trouble for another  year,” Frost said.

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BUY  NOW, PLANT LATER

Jeff  Gatewood has never seen a summer this bad in 36 years at Allisonville Nursery in  the Indianapolis suburb of Fishers.

Indianapolis  had its hottest July on record, with temperatures topping 90 degrees on 28 days,  and less than an inch of rain fell in June and July.

“We’ve  now gone where nobody’s gone before. Hot, dry, hot, dry, record-setting all the  time,” Gatewood said.

With  business down 20 percent to 30 percent because of the weather, he quit ordering  new plants in June and cut hours and staff. Then he decided to get creative.

The  nursery held a “heat stroke” sale in late July, offering customers a chance to  buy plants and pick them up later, once cooler temperatures arrive and local  watering bans are lifted. That brought people in and helped business some, he  said.

“We’re  seeing a pent-up demand like a dam wanting to break. I think once we see cooler  temperatures in the lower 80s, get a little rain shower  that’s going to help,”  he said.

The  nursery has clustered plants in shaded areas to protect them. Gatewood said  hydrangeas are especially vulnerable.

“Even  in the shade, when it’s 95 or 100, they hate it,” he said.

–Jeni  O’Malley in Indianapolis

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CREATIVE  FORECASTING

Facing  three minutes to fill on the nightly newscast, a TV station blog to update and a  forecast reading something like “sunny and 102″ for the umpteenth day in a row,  meteorologist Todd Yakoubian doesn’t sweat. He pulls out a meat thermometer.

“I  try to keep it as interesting as possible,” said Yakoubian, a meteorologist with  KATV in Little Rock, Ark. “You can’t do the same thing day in and day out.”

To  illustrate just how hot it has been in Arkansas, and for how long, Yakoubian  recently filled a sink in his home with water from the “cold” tap and measured  it at a not-very-refreshing 84 degrees. He also has fried eggs on a sidewalk and  baked cookies in a car, but admits everybody does that. He’s on a quest to find  other ways to show just how doggone hot the dog days are.

“I  put a wireless thermometer in the attic and hooked up a webcam and streamed it  for “How Hot Is It In Todd’s Attic?”

The  answer: 138.6 degrees.

He  also took temperature readings in his wife’s car to show viewers how dangerous  it was to leave children or animals in vehicles that can reach 130 degrees.

“I  used a meat thermometer because it was the only one I had that would go that  high,” Yakoubian said.

–Kelly  Kissel in Little Rock, Ark.

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A  SILVER LINING

There  may be a silver lining to the drought: The so-called “dead zone” in the Gulf of  Mexico is shrinking and the summer has seen fewer tornadoes.

The  dead zone is an area of low oxygen in the waters that is a long-standing environmental problem, which experts say is  caused by farm pollution running into the Mississippi River and then the Gulf of  Mexico. But with less rain, there is less runoff.

Nancy  Rabalais, a dead zone expert with the Louisiana Universities Marine Consortium,  found the dead zone was the fourth smallest in 80 years of records. It measured  only 2,889 square miles in July, compared to a five-year average of 5,695 square  miles.

Tornado  Alley also has been quiet this summer. In mid-April, the U.S. looked like it was  on pace to set a record with the number of tornadoes this year. Then the storms  stopped coming.

In  June, there were about 100 tornadoes, the second fewest in more than 60 years of  recordkeeping. Then in July it got even slower, with a preliminary count of 24.  Before this year, the fewest tornadoes the U.S. had in July was 73.

The  heat wave and drought are the primary reason for fewer twisters, said Harold  Brooks, a research meteorologist at the National Severe Storm Laboratory in  Norman, Okla.

In  a drought, there are fewer thunderstorms from which tornadoes can form. But  there’s also less wind shear, which storms need to get rotation for tornadoes,  said Jeff Masters, meteorology director at Weather Underground.

But  exchanging tornadoes for drought and extreme heat is not a good trade. Tornadoes  typically kill one or two people each July, but the heat waves are killing  dozens.

“I  think heat waves are the most dangerous weather phenomena out there,” Masters  said.

–Seth  Borenstein in Washington, D.C.

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WEEPING  WILLOWS

The  limbs of the weeping willows gracing banks of a lake at the Chicago Botanic  Gardens drooped more than usual, and the leaves  normally plush and green   wilted and began to fall after several weeks of unusual heat.

Weeping  willows are water-loving trees, said Tim Johnson, horticulture director for the  botanic gardens: “When things dried down, they responded. The leaves yellowed up  and some dropped.”

Many  of the gardens’ 2.5 million plants have required extra watering during the  summer’s triple-digit heat, but the willows were a special case.  Groundskeepers  have been excessively watering the willows about once a week for about a month,  drawing water from several lakes on the property to deluge the roots for about  30 minutes.

One  tree that was in particularly bad shape required 850 gallons of water, an amount  that usually hydrates several miles on the 385-acre reserve, during one watering  alone.

Still,  the foliage wilts.

“The  damage has been done,” Johnson said.

–Michelle  Nealy in Chicago

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RESOURCE  RATIONING

Randy  Pettinghill buys water from the city of Morrilton for his farm in the Arkansas  River Valley, but this year, the city put a cap on what he could have. It turns  on the spigot every third night from 7 p.m. to 7 a.m., and Pettinghill collects  as much as he can in lagoons on his property in Arkansas’ Conway County.

He  tries to ration the water, but with the temperature regularly over 100 degrees,  he’s losing a lot to evaporation.

He  has wells on his property too. He spent $25,000 to have the second one drilled  in July because the first was producing half its normal amount of water. He  connected the two, and they still aren’t producing enough to keep his corn and  soybeans irrigated. He left about two-fifths of his 1,700 acres unplanted this  year, and he’s been pumping water onto the rest, spending $22,000 a month for  fuel.

“If  I run out of water, they’ll be dead in two weeks,” he said.

–Charles  Bartels in Little Rock, Ark.

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CASHING  IN

For  some, the drought will likely be a money-maker  especially those who fall  outside the dry-weather zone.

One  of those farmers is Harlan Anderson.  The rainfall on his 800-acre farm near  Cokato in southern Minnesota has been normal, maybe a bit more. That means he’ll  have alfalfa, corn and soybeans to sell when others don’t, and he’ll benefit from rising prices.

But  demonstrating what he described as his Scandinavian sense of reserve, Anderson  said he feels a little guilty when talking about how he expects to profit from  the misfortune of other farmers in the Upper Midwest.

“My  projection is that our gross profits for the year will double,” Anderson said.  “The drought has certainly been good to me. Don’t say that too loud.”

He’s  started getting frequent calls in recent weeks from livestock farmers around the  country. Some usually grow their own feed, while others buy it from farmers like  Anderson. All are starting to worry about their supply.

“Looking  ahead, they’re trying to decide if there’s a sufficient supply of feed, can they  afford it and are they going to keep feeding their dairy cow or their horse  or  are they going to shoot them?” Anderson said.

–Patrick  Condon in Minneapolis

Read More http://timesleader.com/stories/Woe-and-opportunity-Tales-from-historic-drought,189867#ixzz23LR5qCsO