The water crisis in the south west of the US is likely to worsen according to a new study carried out by the American space agency and University of California.
Research has found that the Colorado River Basin, the prime source of water in the region, is being sucked dry.
Only last week California announced daily fines of $500 (£300) for residents who water their lawns with nearly four fifths of the state being classified as being under “extreme” and “exceptional” drought conditions.
The Colorado River is the only major river in the southwestern US, with the basin supplying water to 40 million people in seven states and irrigating around four million acres of farmland.
In California, the basin is a key source of water for Los Angeles and San Diego.
The new study is the first to look at the role of groundwater in the parched region and has been carried out against a backdrop of a severe drought dating back to 2000.
A series of monthly measurements have shown that over nine years the Colorado River Basin lost nearly twice as much water as Lake Mead, Nevada – the country’s largest reservoir.
“We don’t know exactly how much groundwater we have left, so we don’t know when we’re going to run out,” said Stephanie Castle, a water resources specialist at the University of California, Irvine.
“This is a lot of water to lose. We thought that the picture could be pretty bad, but this was shocking.”
Jay Famiglietti, the senior water cycle scientist at the Jet Propulsion Laboratory in Pasadena, warned the findings have long term implications for the entire region.
“The Colorado River Basin is the water lifeline of the western United States,” he said.
“With Lake Mead at its lowest level ever, we wanted to explore whether the basin, like most other regions around the world, was relying on groundwater to make up for the limited surface-water supply.
“We found a surprisingly high and long-term reliance on groundwater to bridge the gap between supply and demand.
“Combined with declining snowpack and population growth, this will likely threaten the long-term ability of the basin to meet its water allocation commitments to the seven basin states and to Mexico.”
The Chinese keep expanding the use of mutual currency swaps to do an end run around the U.S. Dollar. Now Switzerland China currency swap is added to the growing list.
Here's the countries I have found, prior to the Swiss, that have entered into the currency swap arrangements with China since 2008:
United Arab Emirates (UAE)
This list may not have all the countries agreeing to go outside the dollar and do currency swaps with China. (I DID NOT DO A SEARCH ON EACH INDIVIDUAL COUNTRY AND THEIR CURRENCIES.) But the currency swaps are expanding to the Central Banks to include the ECB (European Central Bank) to now the Swiss Central Bank. The Swiss are a major player in world banking and finance.
And let's not forget, whether our national and international policies are right or wrong, this year we have alienated more countries, such as Russia and France (especially with the sanctions) to move away from the US Dollar.
Truthfully if this present trend continues and we have more international issues, without some real solutions to our monetary policy issues, you have to ask yourself: Will the US Dollar still be the world's reserve currency by the end of 2015?
Why does it matter whether the US Dollar is the world's reserve currency? Can't we just use the US Dollar at home?
Yes, you can use the US Dollar at home. We spend trillions in international trade and are highly dependent on it. In fact 20% of your food supply is IMPORTED. We have been exporting our manufacturing base since George Bush Sr. 41 was president. Since we have been exporting our manufacturing base we are dependent on IMPORTS for our economy and individual use.
Can you now see that we will experience our modern Weimar Republic (Germany post WWi), an onslaught of meteoric rise of inflation in major economic sectors of our economy, once other countries loose faith in the US Dollar as the trading instrument?
I encourage everyone to keep following the currency swaps on their own. The media seems to focus only on the BRICS countries, but they are just a fraction of what is going on. Follow the trend.
Be on your toes so your dollars, income and savings can go farther!
Swiss, Chinese Central Banks Enter Currency Swap Agreement
By Dow Jones Business News, July 21, 2014, 04:12:00 AM EDT
By Neil MacLucas and Richard Silk
ZURICH--The Swiss National Bank and the People's Bank of China reached a currency swap agreement on Monday, allowing the two central banks to buy and sell their currencies up to a limit of 150 billion renminbi, or 21 billion Swiss francs ($23.4 billion).
The deal will also allow the Swiss central bank to invest some of its huge accumulation of foreign exchange reserves in the Chinese bond market, the SNB said in a statement Monday.
The Zurich-based SNB said the agreement will further strengthen collaboration between it and its Chinese counterpart and is a "key requisite for the development of a renminbi market in Switzerland." It could also facilitate trade and investment between the two countries, the PBOC said.
Switzerland is the latest of a series of countries to set up swap lines with China, which is keen to promote the international use of the yuan.
Last year China signed swap agreements with the European Central Bank and a clutch of others, including the U.K., Brazil and Indonesia.
The agreement between China and Switzerland has a term of three years and can be renewed thereafter, the PBOC said.
Write to Neil MacLucas at firstname.lastname@example.org and Richard Silk at email@example.com
Have you heard of the expression: "Damned if you do, damned if you don't.
That's what Californians are facing with the water crisis. The state is going to fine $500 for water use beyond emergency measures. The local communities are going to fine $500 for not watering your lawn because of fire hazard and aesthetics.
So what happens?
American Ingenuity! A new business of painting your lawn grass to look like it is healthy.
Although sad, this article is also a hoot! Americans don't have to be held done unless they choose to be. Think about it!
Enter your text here...
Painters color match parts of the lawn that are still green using dyes mixed with water, and sprayed onto the grass.
SoCal Homeowners Spray-Painting Lawns Green To Avoid Water Fees During Drought
by Gregg Rosenblum July 20, 2014 7:04 PM from www.sanfrancisco.cbslocal.com/
A man spray-paints a lawn in Southern California during a severe drought. (CBS)
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LOS ANGELES (CBS SF) — Homeowners in Los Angeles are facing tough choices in keeping their lawns green during a devastating drought, pushing some far enough to spray paint them.
Business for lawn painters like Kerry McCoy is booming now that the state is sanctioning homeowners for excessive water use.
“As soon as the water sanctions hit, and as soon as people find their water bills rising, they’re looking for ways to cut back on their expenses, and that’s when they start calling,” she said.
McCoy says the grass doesn’t die completely, and when winter rains come, the lawn will turn green again on their own.
Read more on the California Drought at http://sanfrancisco.cbslocal.com/2014/07/20/socal-homeowners-spray-painting-lawns-green-to-avoid-water-fees-during-drought-grass-spray-paint-sanctions-water-bills-excessive/
Do you think that the federal government statistics are accurate?
Dr.Paul Craig Roberts has written extensively on this. I refer you to his website, www.paulcraigroberts.org.
Basically in the Clinton administration they changed the way we calculated unemployment (which led to underreporting) and inflation the government had used for over 100 years. If you want to know the numbers based on the historical way inflation was calculated for over 100 years based upon today's data, see the website www.shadowstats.com of economist John Williams.
The truth is inflation is accelerating. Whether this country follows what happened to the German Republic after WWI remains to be seen.
What we also know wages are not increasing at a rate to offset the inflation. (Instead, when inflation rises it seems that some employers cut payroll.)
Look below at how food prices have been increasing and what others are reporting. Judge things by what you are experiencing. For example at the grocery store you are seeing price increases in three ways: (1) direct price increase; (2) decreasing quantity for the same or slightly higher price and (3) reformulation with cheaper ingredients and fillers.
Food prices are a faster rising sector due to many factors, i.e., the drought, 20% of our food being imported, the devaluation of the dollar, etc.
You can mitigate significantly the food inflation by locking in your prices with freeze dried and dehydrated foods. I encourage you to consider storing Thrive because it really has the best quality all around among the freeze dried food companies.
Inflation where it matters: Close to 50 percent of Americans indicate spending more on groceries and fuel this summer. Nearly one third indicate more spending on rent and mortgage payments
The stock market continues to move upwards ambivalent to economic indicators and the reality that inflation is permeating throughout our economy. The Fed continues to point at CPI as evidence that inflation remains subdued and this gives them the motivation to move forward with monetary policies that we have never embarked upon. We are already getting a taste of the bigger consequences including a growing low wage labor force. A recent Gallup survey found that Americans are spending more money on items that actually matter and items that consume a large portion of a household’s budget. This is key here in understanding the nature of inflation. Items like housing, healthcare, food, and energy make up a large portion of spending. Yet the Fed looks at other items that consume a small part of a household’s budget and balance out the overall picture. What you get is a massive understating of inflation and a stock market heavily juiced on easy money. Large pools of money are chasing real assets and crowding out regular Americans from the market.
Where inflation matters
It is interesting to see how people react to a constant feed of distorted information. The message is clear and it is one that is underplaying inflation. The tone set by the Fed is one in which monetary easing should continue to go on because inflation is simply not happening in the real economy. This could not be further from the truth.
Looking at the Gallup survey, you can find that Americans are spending more on the items that already consume a large part of their budgets:
Source: Gallup, GS
Read More at http://www.mybudget360.com/inflation-where-it-matters-inflation-2014-data-inflation-items/
I've been sharing various reports that food prices are increasing.
For example, from January 1, 2014 to the March report on zerohedge.com, food prices (reported by Bloomberg) went up 19%.
from Zerohedge.com March 26, 2014
Food prices are continuing their upward climb as the article by Michael Snyder below documents.
WIth all of the food pricing volatility, drought and current world events it is being a wise steward to store some food that you and your family routinely eat so you can cost average and lower your food bill.
Unfortunately the drought will probably be impacting food costs through 2015.
That's one of the great things about freeze dried and dehydrated foods. They last so much longer than the shelf life of grocery store foods. Plus our food comes in BPA free cans and we help you avoid GMOs, MSG, hidden MSG, aspartame, food processing chemicals, gluten, and more!
If the food inflation issue did not exist, we are a much healthier alternative to the traditional grocery store. And we are more convenient and help cut your meal prep times 50% or more since everything comes chopped, cut, prepped and clean!
So please do your wallet and your health a favor by trying Thrive! I will show you how to get the lowest price possible if you just email me at firstname.lastname@example.org.
If This Keeps Up, They Will Have To Start Putting Armed Guards On Food Trucks
By Michael T. Snyder, Guest Columnist, 7/17/2014 of TheEconomicCollapseBlog.com
The basic necessities in life just keep getting more expensive. On Tuesday, Hershey announced that the price of all of their chocolate bars is going to go up by about 8 percent. That is particularly distressing to me, because I am known to love chocolate. But if it was just chocolate that was becoming significantly more expensive perhaps that would be okay. Last month, it was coffee. J.M. Smucker, one of the largest coffee producers in the United States, announced that it planned to raise coffee prices by about 9 percent. And Starbucks has announced a bunch of price increases across the board on their coffee products. Of course we could all survive without chocolate and coffee, but as you will see below just about every food category is becoming more expensive. If this keeps up, could we eventually see armed guards in grocery stores and on food trucks?
On Wednesday, Robert Wenzel of the Economic Policy Journal shared some new data that has just been released by the federal government about food inflation over the past year. Without a doubt, these numbers are quite startling...
According to the latest data released today by the Bureau of Labor Statistics, year-over-year gains in some food products at the producer level have been truly spectacular.
Eggs for fresh use are up 33.9%.
Pork is up 28%.
Processed turkeys are up 20.4%.
Dairy products are up 10.7%.
Fresh and dry vegetables are up 8.4%.
Fresh fruits and melons are up 7.5%.
Unfortunately, paychecks for most American families are not going up at similar rates.
What that means is more pain when we make our trips to the grocery store. Things have gotten so bad that even the mainstream media is running stories about this. For example, this excerpt comes from a recent CNBC article...
"I try to do all my local errands in one day and go up to the mall," said Helon Rapfogel of New Jersey. "I used to go maybe twice or three times a week, and now I just go one day a week, if that much. And I try to consolidate things."
Rapfogel said that higher costs for food and gas are hitting her overall budget.
"You sacrifice things. Like not doing an ice cream run during the week with the kids. [That could] hurt the local retailers, and we don't want to do that ... but we may have to," she said.
At the grocery store, meat, dairy and fruit prices are all up substantially. People are even paying more for lattes at their local coffee shops. And it's not just food—gas prices have jumped sharply on geopolitical unrest, and at the moment there's no relief in sight.
So why is all of this happening?
Well, the truth is that a lot of factors have combined to produce something of a perfect storm.
First of all, we should talk about Federal Reserve money printing. Since the last financial crisis, the Fed has been on an unprecedented money printing spree. This has dramatically pushed up the prices of stocks, commodities and just about everything else. It was naive to think that we wouldn't eventually see substantial food inflation as well. Just look at what "quantitative easing" has done to M1 since the last recession...
When you have more dollars chasing roughly the same amount of goods and services of course prices are going to go up.
It is just basic economics.
But according to Federal Reserve Chair Janet Yellen, there is absolutely no reason to be concerned. The following is a video of her telling the press her view on inflation that I shared in a previous article...
But crazy Fed money printing is not the only reason why food prices are going up.
The endless drought in the western half of the country is severely hurting food production as well. The size of the U.S. cattle herd has shrunk for seven years in a row, and it is now the smallest that it has been since 1951. And the drought is hitting the state of California particularly hard, and considering the fact that it produces nearly half of all of our fresh produce that is more than a little bit alarming. Yes, we are more technologically advanced that we used to be, but we are not advanced enough to overcome an epic multi-year drought in half the nation.
In addition, we are also dealing with the worst pork virus to ever hit the United States right now. Porcine epidemic diarrhea has already wiped out about 10 percent of the pig population in the U.S., and approximately 100,000 more are dying each week. As you saw above, pork prices are already up 28 percent over the past 12 months, and if a solution is not found to this virus the price increases are going to get much worse.
Down in Florida, citrus growers are facing a horrific outbreak of citrus greening disease. The U.S. Department of Agriculture says that orange production in the U.S. will be down 18 percent compared to last year, and it is expected that this will be the worst crop in close to 30 years.
Another plague known as the TR4 fungus has hit banana production. According to CNBC, this horrible fungus may eventually completely wipe out the variety of bananas that we eat today…
Banana lovers take note: The world’s supply of the fruit is under attack from a fungus strain that could wipe out the popular variety that Americans eat.
“It’s a very serious situation,” said Randy Ploetz, a professor of plant pathology at the University of Florida who in 1989 originally discovered a strain of Panama disease, called TR4, that may be growing into a serious threat to U.S. supplies of the fruit and Latin American producers.
“There’s nothing at this point that really keeps the fungus from spreading,” he said in an interview with CNBC.
While there are nearly 1,000 varieties of bananas, the most popular is the Cavendish, which accounts for 45 percent of the fruit’s global crop—and the one Americans mostly find in their supermarkets.
For decades, Americans have been able to go to the grocery stores and fill up their carts with massive amounts of very inexpensive food.
But just because it has been that way for so many years does not mean that it will be that way in the future.
The only way to save money on the fast rising grocery tab is for you to store some food. Specifically you should store foods that your family regularly eat and are more subject to the higher price increases.
As my previously published research shows California has a strangehold on your grocery cart. Most of the produce, whether fruits, vegetables, nuts, etc. come from California.
Make a list of those crops your family loves and start storing today! If you want to purchase Thrive for some of those items, contact me at email@example.com. I will work with you to get you the lowest possible price.
20 Signs The Epic Drought In The Western United States Is Starting To Become Apocalyptic
By Michael T. Snyder, July 15, 2014, Guest Columnist, TheEconomicCollapseBlog.com.
When scientists start using phrases such as "the worst drought" and "as bad as you can imagine" to describe what is going on in the western half of the country, you know that things are bad. Thanks to an epic drought that never seems to end, we are witnessing the beginning of a water crisis that most people never even dreamed was possible in this day and age. The state of California is getting ready to ban people from watering their lawns and washing their cars, but if this drought persists we will eventually see far more extreme water conservation measures than that. And the fact that nearly half of all of the produce in America comes out of the state of California means that ultimately this drought is going to deeply affect all of us. Food prices have already been rising at an alarming rate, and the longer this drought goes on the higher they will go. Let us hope and pray that this drought is permanently broken at some point, because otherwise we could very well be entering an era of extreme water rationing, gigantic dust storms and crippling food prices. The following are 20 signs that the epic drought in the western half of the United States is starting to become apocalyptic...
#1 According to the Los Angeles Times, downtown Los Angeles is now the driest that it has been since records began being kept all the way back in 1877.
#2 The California State Water Resources Control Board says that nearly 50 communities are already on the verge of running out of water.
#3 In a desperate attempt to conserve water, the state of California is considering banning watering lawns and washing cars. Once implemented, violators will be slapped with a $500 fine for each offense.
#4 It has been reported that a new social media phenomenon known as "drought shaming" has begun in California. People are taking videos and photos of their neighbors wasting water and posting them to Facebook and Twitter.
#5 Climate scientist Tim Barnett says that the water situation in Las Vegas "is as bad as you can imagine", and he believes that unless the city "can find a way to get more water from somewhere" it will soon be "out of business".
#6 The water level in Lake Mead has now fallen to the lowest level since 1937, and it continues to drop at a frightening pace. You can see some incredible photos of what has happened to Lake Mead right here.
The drought is like a slow spreading cancer across the desert. It's not like a tornado or a tsunami, bang. The effects are playing out over decades. And as the water situation becomes more dire we are going to start having to talk about the removal of people (from Las Vegas).
#8 In some areas of southern Nevada, officials are actually paying people to remove their lawns in a desperate attempt to conserve water.
#9 According to Accuweather, "more than a decade of drought" along the Colorado River has set up an "impending Southwest water shortage" which could ultimately affect tens of millions of people.
#14 The lack of produce coming from the state of California will ultimately affect food prices in the entire nation. Just consider the following statistics from a recent Business Insider article...
California is one of the U.S.'s biggest food producers — responsible for almost half the country's produce and nuts and 25% of our milk and cream. Eighty percent of the world's almonds come from the state, and they take an extraordinary amount of water to produce — 1.1 gallons per almond.
#15 As underground aquifers are being relentlessly drained in California, some areas of the San Joaquin Valley are sinking by 11 inches a year.
#16 It is being projected that the Kansas wheat harvest will be the worst that we have seen since 1989.
#17 The extended drought has created ideal conditions for massive dust storms to form. You can see video of one female reporter bravely reporting from the middle of a massive dust storm in Phoenix right here.
#18 Things are so dry in California right now that people are actually starting to steal water. For example, one Mendocino County couple recently had 3,000 gallons of water stolen from them. It was the second time this year that they had been hit.
#19 At the moment, close to 80 percent of the state of California is experiencing either "extreme" or "exceptional" drought.
Most people just assume that this drought will be temporary, but experts tell us that there have been "megadroughts" throughout history in the western half of the United States that have lasted for more than 100 years.
If we have entered one of those eras, it is going to fundamentally change life in America.
And the frightening thing is that much of the rest of the world is dealing with water scarcity issues right now as well. In fact, North America is actually in better shape than much of Africa and Asia. For much more on this, please see my previous article entitled "25 Shocking Facts About The Earth’s Dwindling Water Resources".
Without plenty of fresh water, modern civilization is not possible.
And right now, the western United States and much of the rest of the world is starting to come to grips with the fact that we could be facing some very serious water shortages in the years ahead.
So what is the solution?
20 Signs The Epic Drought In The Western United States Is Starting To Become Apocalyptic
20 Signs The Epic Drought In The Western United States Is Starting To Become Apocalyptic
You should pay attention to the concentration of our food supply. It is bad for your health and your wallet.
When power gets concentrated:
Higher prices result because price fixing is easier, i.e., YOUR GROCERY BILL INCREASES!
You have less choice of products, i.e., cheaper ingredients, GMOs, MSG, hidden MSG, aspartame, etc.
Innovation gets decreased because competition becomes more difficult;
You have less influence over product ingredients.
Stay away from Walmart! It's sick that a third of the groceries are bought there! Walmart heavily relies upon imported food from China. Food grown in China has all kinds of safety issues. Please see my page, http://survive-thrive.us/food-country-of-origin/. Country of origin does matter for your health. Also a recent study this year found that 54% of the food sold in Walmart would not meet Whole Foods standards to be sold in their stores. Whole Foods has issues but nothing like Walmart, which I consider the bottom of the pit.
I visit a variety of grocery stores for market observations. It is very striking time after time observing the physiological differences between shoppers at Trader Joes and Whole Foods compared to Walmart. Many of the grocery shoppers at Walmart are grossly morbidly obese yet when you visit Trader Joes or Whole Foods you do not see that degree of obesity there. Just go and observe for yourself.
It makes you wonder could it be the foods these shoppers are selecting that is contributing to their physiological presence and health issues?
(You don't have to go to Walmart to save on your groceries.You can afford to stay out of Walmart by eating Thrive foods. Just contact me and I will show you how to save 20 to 40% or more by planning and not wasting food.)
Vote for your health and your pocketbook with your dollars! Avoid purchasing any of these brands if at all possible!
Pay attention to the diagram below. Vote for your health and your pocketbook with your dollars! Avoid purchasing any of these brands if at all possible!
Big Corporations Have An OVERWHELMING Amount Of Power Over Our Food Supply
By Michael T. Snyder, Guest Columnist, of TheEconomicCollapseBlog.com
From our fields to our forks, huge corporations have an overwhelming amount of power over our food supply every step of the way. Right now there are more than 313 million people living in the United States, and the job of feeding all of those people is almost entirely in the hands of just a few dozen monolithic companies. If you do not like how our food is produced or you don't believe that it is healthy enough, it isn't very hard to figure out who is to blame. These mammoth corporations are not in business to look out for the best interests of the American people. Rather, the purpose of these corporations is to maximize wealth for their shareholders. So the American people end up eating billions of pounds of extremely unhealthy food that is loaded with chemicals and additives each year, and we just keep getting sicker and sicker as a society. But these big corporations are raking in big profits, so they don't really care.
If we did actually have a capitalist system in this country, we would have a high level of competition in the food industry. But instead, the U.S. food industry has become increasingly concentrated with each passing year. Just consider the following numbers about the U.S. agricultural sector...
The U.S. agricultural sector suffers from abnormally high levels of concentration. Most economic sectors have concentration ratios around 40%, meaning that the top four firms in the industry control 40% of the market. If the concentration ratio is above 40%, experts believe competition can be threatened and market abuses are more likely to occur: the higher the number, the bigger the threat.
The concentration ratios in the agricultural sector are shocking.
-Four companies own 83.5% of the beef market. -The top four firms own 66% of the hog industry. -The top four firms control 58.5% of the broiler chicken industry. -In the seed industry, four companies control 50% of the proprietary seed market and 43% of the commercial seed market worldwide. -When it comes to genetically engineered (GE) crops, just one company, Monsanto, boasts control of over 85% of U.S. corn acreage and 91% of U.S. soybean acreage.
When so much power is concentrated in so few hands, it creates some tremendous dangers.
Because farmers rely on both buyers and sellers for their business, concentrated markets squeeze them at both ends. Sellers with high market power can inflate the prices of machinery, seeds, fertilizers and other goods that farmers need for their farms, while powerful buyers, such as processors, suppress the prices farmers are paid. The razor-thin profit margins on which farmers are forced to operate often push them to "get big or get out"—expanding into mega-operations or exiting the business altogether.
Of course the control that big corporations have over our food supply does not end at the farms.
The distribution of our food is also very highly concentrated. The graphic shared below was created by Oxfam International, and it shows how just 10 gigantic corporations control almost everything that we buy at the grocery store...
And these food distributors are often not very good citizens either.
Among the windmills and creosote bushes of San Gorgonio Pass, a nondescript beige building stands flanked by water tanks. A sign at the entrance displays the logo of Arrowhead 100% Mountain Spring Water, with water flowing from a snowy mountain. Semi-trucks rumble in and out through the gates, carrying load after load of bottled water.
The plant, located on the Morongo Band of Mission Indians’ reservation, has been drawing water from wells alongside a spring in Millard Canyon for more than a decade. But as California’s drought deepens, some people in the area question how much water the plant is bottling and whether it’s right to sell water for profit in a desert region where springs are rare and underground aquifers have been declining.
Nestle doesn't stop to ask whether it is right or wrong to bottle water in the middle of the worst drought in the recorded history of the state of California.
They have the legal right to do it and they are making large profits doing it, and so they are just going to keep on doing it.
Perhaps you are thinking that you can avoid all of these corporations by eating organic and by shopping at natural food stores.
Over the past 20 years, Whole Foods Market has acquired its competition, including Wellspring Grocery, Bread of Life, Bread & Circus, Food for Thought, Fresh Fields, Wild Oats Markets and others. Today the chain dominates the market because it has no national competitor. Over the past five years its gross sales have increased by half (47 percent) to $11.7 billion, and its net profit quadrupled to $465.6 million. One of the ways it has achieved this profitability is by selling conventional foods under the false illusion that they are better than products sold at a regular grocery store. Consumers falsely conclude that these products have been screened and are better, and they are willing to pay a higher price.
The distribution of organic foods is also extremely concentrated. A little-known company, United Natural Foods, Inc. (UNFI) now controls the distribution of organic and natural products. Publically traded, the company has a contract with Whole Foods and it is the major source of these products for the remaining independent natural food stores. This relationship has resulted in increasingly high prices for these foods. Small manufacturers are dependent on contracts with UNFI to get their products to market and conversely, small retailers often have to pay a premium price for products because of their dependence on this major distributor. Over the past five years, UNFI's net sales increased by more than half (55.6 percent) $5.2. billion. Its net profit margin increased by 88 percent to $91 million.
Everywhere you look, the corporations are in control.
And this is especially true when you look at big food retailers such as Wal-Mart.
Right now, grocery sales account for about half of all business at Wal-Mart, and approximately one out of every three dollars spent on groceries in the United States is spent at Wal-Mart.
That is absolutely astounding, and it obviously gives Wal-Mart an immense amount of power.
In fact, if you can believe it, Wal-Mart actually purchases a billion pounds of beef every single year.
So the next time someone asks you where the beef is, you can tell them that it is at Wal-Mart.
On the restaurant side, the ten largest fast food corporations account for 47 percent of all fast food sales, and the love affair that Americans have with fast food does not appear to be in danger of ending any time soon.
Personally, if you do not like how these corporate giants are behaving, you can always complain.
But you are just one person among 313 million, and most of these big corporations are not going to consider the ramblings of one person to be of any significance whatsoever.
Collectively, however, we have great power. And the way that we are going to get these big corporations to change is by voting with our wallets.
Unfortunately, the vast majority of Americans seem quite satisfied with the status quo. So the population as a whole is likely going to continue to get sicker, fatter and less healthy with each passing year, and the big food corporations are going to keep becoming even more powerful.
Have you noticed that prices seem to be rising faster than the official inflation numbers?
Independent of increasing prices, with food price increases are hidden two additional ways: (1) reducing quantity or weight yet offering it with a similar price; and (2) reformulating the ingredients of a processed food with cheaper, and often unhealthier ingredients.
Please read and pay attention to this article by Dr Paul Craig Roberts, Guest Columnist, with Dave Kranzler and John Williams of www. shadowstats.com.
The Deteriorating Economic Outlook
By Paul Craig Roberts, Guest Columnist (former Assistant Secretary of the U.S. Treasury), Dave Kranzler (www.investmentresearchdynamics.com) and John Williams (www.shadowstats.com)
July 8, 2014
The third and final estimate (until the annual GDP revisions) of first quarter 2014 real GDP growth released June 25 by the US Bureau of Economic Analysis was a 2.9% contraction in GDP growth, a 5.5 percentage point difference from the January forecast of 2.6% growth. Apparently, the first quarter contraction was dismissed by those speculating in equities as weather related, as stock averages rose with the bad news.
Stock market participants might be in for a second quarter surprise. The result of many years of changes made to the official inflation measures is a substantially understated inflation rate. John Williams (www.shadowstats.com) provides inflation estimates based on previous official methodology when the Consumer Price Index still represented the cost of a constant standard of living. The 1.26% inflation measure used to deflate first quarter nominal GDP is unrealistic, as Americans who make purchases are aware.
A reasonable correction to the understated deflator gives a much higher first quarter contraction. The two main causes of inflation’s understatement are the substitution principle introduced during the Clinton regime and the hedonic adjustments ongoing since the 1980s that redefine price rises as quality improvements. Correcting for excessive hedonic adjustments gives a first quarter real GDP contraction of 5%. Correcting for hedonic and substitution adjustments gives a first quarter real GDP contraction of 8.5%.
Realistic economic analysis is a rarity. The financial press echoes Wall Street, and Wall Street economists are paid to help sell financial instruments. Gloomy analysis is frowned upon. Even negative quarters are given a positive spin.
Years of understatement of inflation has resulted in years of overstatement of GDP growth. Thinking about the many years of misstatement, we realized that the typical computation in nominal terms of the ratio of debt to GDP is seriously misleading.
Consider that debt is issued in nominal terms and repaid in nominal terms (except for a few Treasury bonds with inflation adjustments). However, nominal wealth or nominal GDP overstates real economic strength. The debt is growing, but both the nominal and real values of the output of goods and services are not keeping up with the rise in debt.
To understand how risky the rise of debt is, nominal debt must be compared to real GDP. Spin masters might dismiss this computation as comparing apples to oranges, but such a charge constitutes denial that the ratio of nominal debt to nominal GDP understates the wealth dilution caused by the government’s ability to issue and repay debt in nominal dollars. We know that inflation favors debtors, because debts can be repaid in inflated dollars.
What Will the New Silver Price Electronic Exchange Mean to the Precious Metals Market?
For a long time organizations such as GATA.org, those involved in the precious metals industry as dealers and resellers have claimed that there is price fixing in the precious metals markets. Some have claimed that the big banks and the Federal Reserve have done a tremendous amount of “naked shorting” to suppress their true worth.
As with any claim or concerns about price-fixing, lawsuits are occurring. Apparently the current system has lost some credibility and has become a liability.
The London Metals Exchange now announces a new set-up, a silver price electronic exchange, starting in August for the selling of silver. Apparently it is trying to address these concerns. (see article below)
So the question becomes what will that do to the price of silver? If there is a new market for trading will that cause silver prices to increase? Will prices become more volatile or like a roller coaster ride? What impact will this have on other precious metals? These are just a few of the questions I have.
I do not have a degree in finance, business, or economics although I do teach business law to MBA students. So I am a layman, just like you, who reads, observes and looks for patterns.
What I am trying to determine is when the price of precious metal rise, is there an inverse relationship to the health of the dollar? If there is, then obviously when the price of precious metals elevate one should be concerned about the viability of the U.S. Dollar and other currencies. Another question I am mulling is whether a rise in precious metals is more of an accurate indicator of the true rate of inflation instead of our government statistics? Since the Clinton Administration changed the formula for inflation accounting many say that the real rate of inflation is underreported. See John Williams’s website www.shadowstats.com for more information.
For those interested in this topic see the announcement below:
* LBMA settles on silver fix replacement after 2-month hunt
* New mechanism heralds change in precious metals benchmarks
By Clara Denina and Jan Harvey
LONDON, July 11 (Reuters) – CME Group and Thomson Reuters will operate an electronic silver benchmark when the 117-year-old “fix” is disbanded in August, in a move widely seen preceding sweeping reforms of precious metals price-setting.
The London Bullion Market Association (LBMA) said in a statement on Friday that CME Group will provide a price platform and methodology for the daily process, while Thomson Reuters is responsible for administration and governance.
CME/Thomson Reuters will start testing the new process in early August after the closely contested competition to produce a solution.
The silver fix – used by producers, consumers and investors – is set every day at noon by three banks via a conference call, working out a price at which their customers are willing to buy and sell the metal.
But with increased attention from regulators in the wake of benchmark manipulation in other markets, the current operator – London Silver Market Fixing Ltd – said in May it would stop running the daily call.
The LBMA consulted market participants with the aim of producing a transparent electronic alternative that complies with toughened regulatory benchmarking standards.
Food Inflation, Now Wood Food Fillers: It’s not just Your Health. When Does it Become Misrepresentation/Food Fraud?
As you know I get very “worked up” about knowing what is in my food: Is it GMO? Does it contain MSG? Hidden Msg? Aspartame? What is the food formula or food ingredients? Is it what I call “Chemical Food”?
I wrote about Food Fraud last year that many seafood are not what they are represented to be.
But what if they reformulate, do not tell you, but have a small ingredients label on the product and don’t translate the “foodese” (or food chemical language, akin to my profession having legalese)?
Do you think that this is misrepresentation or just caveat emptor (“buyer beware”)?
Is it ethical conduct by the food industry? (Note: Sometimes things can be “legal” but that does NOT mean that it is “ethical”.)
Isn’t it a sad state of affairs that when you go grocery store shopping, week after week, that the situation is getting so out of hand (increasing probably more than we realize) that you just can’t trust that the product is still the same but have to read each item and each label every visit? If you think grocery stores are the only ones that do this, think again. Restaurant chains, including the fast food industry, has wood fillers in their products.
Why are we supporting this kind system with our dollars?
This is one of the reasons that I buy extremely little from the traditional grocery stores and use Thrive. But if you don’t use Thrive, why don’t you find a food co-op or a local farmer and buy as much of your food from them?
The point is GET OUT OF THE FOOD PROCESSING DISTRIBUTION CHAIN!!!! It’s become more of a big business food purchase and supply chain than it is a consumer market or service.
How much do they really care about you? The Grocery Manufacturer’s Association fights tooth and nail to keep you from knowing what their members have put in your food. If they had healthy products, they would not care if you knew. In fact, they would spend money conducting public information campaigns to tell you what is in your food.
Instead, they press ahead using dirty tactics, i.e., Washington State and California food labeling referendum, trying to discourage you from knowing what is in your food.
It’s sick. And we consumers must vote with our dollars and get out of this system ASAP!
How Fast Food Providers Beat Inflation – Add Wood Pulp To Burgers
By Tyler Durden of ZeroHedge.com
Who knew wood could taste this good. QZ.com/Photo Reuters/Molly Riley
On Monday, Quartz published an article by Devin Cohen titled, There is a Secret Ingredient in Your Burgers: Wood Pulp. Given the headline and people’s already present suspicion regarding all of the shady and potentially dangerous ingredients hidden in food items, the article gained a lot of traction. In subsequent days, most journalists and bloggers have focused on the dangers of this additive (unclear) and whether or not it is pervasive throughout the food chain as opposed to just fast food (it appears to be).
The one angle that has not been explored as much is the overall trend. Let’s go ahead and assume that wood pulp is a safe thing to consume, it certainly seems to have no nutritional value whatsoever. So why are companies inserting it into food items? To mask inflation and earn more profits most likely. This was a major theme I focused on last year in a series of pieces on stealth inflation and food fraud, a couple of which can be read below:
There may be more fiber in your food than you realized. Burger King, McDonald’s and other fast food companies list in the ingredients of several of their foods, microcrystalline cellulose (MCC) or “powdered cellulose” as components of their menu items. Or, in plain English, wood pulp.
The emulsion-stabilizing, cling-improving, anti-caking substance operates under multiple aliases, ranging from powdered cellulose to cellulose powder to methylcellulose to cellulose gum. The entrance of this non-absorbable fiber into fast food ingredients has been stealthy, yet widespread: The compound can now be found in buns, cheeses, sauces, cakes, shakes, rolls, fries, onion rings, smoothies, meats—basically everything.
The cost effectiveness of this filler has pushed many chains to use progressively less chicken in their “chicken” and cream in their “ice cream.”
This is the part that really interests me. When did these companies first introduce this substance into their products and what is the growth trend? My guess is that as food costs have risen, the proportion of non-nutritonal fillers has increased substantially. That said, I’d like to see some data and I haven’t yet.
My big takeaway here is the same as last year’s when I first started writing about the trend. As the cost of food continues to rise, the cost of not paying attention to what you are eating rises exponentially. Companies will continue to try to mask inflation by shrinking package sizes, and when that is no longer possible, increasingly inserting empty fillers (or worse) into their products.
Give me a call at (336) 823 0008. I'll give you candid answers to your questions.
Look forward to hearing from you! Debi
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Let us not lose heart in doing good, for in due time, we will reap if we do not grow weary. So then, while we have the opportunity, let us do good to all people, and especially to those who are of the household of the faith.
Galatians 6:9-10 (NASB)
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