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Publishing Financial E-letter since 2001 July 22, 2012
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Worst food crises from 2014 onward – Weekly newsletter from 23-27 July
Dear Members,
In our book we mentioned that overall weather pattern will remain friendly around the globe in the year 2012. We also mentioned that in the longer term (in the next three years) corn will be reaching $2000, wheat $2000 and soy $3000 purely due to the most uncertain weather pattern after 2012.
Currently South America (Argentina) and mid-west USA (grains growing areas), are experiencing weather conditions that are not that friendly for crops, and this has already started creating panic on the Chicago trading floor. Just imagine what will happen to grain prices, when the worst weather conditions arrive on our planet from 2014.
The world population is growing, and the younger generations are not interested in farming, they want to go to Wall-street, or do fancy jobs which require less manual labor so what will happen to farming, who will grow food for us? Just imagine what will happen if these is no rain for a year? We may have to sell our assets or even gold to buy food.
When I was young around 1984 (16 years old), I used to tell people that the time will come when people and governments will have wars over food. I used to say that, that time would be around 2014/15. Thirty years have passed and we are just one year away from 2014. We are very concerned about food prices and the weather patterns (drought, flood, unbearable heat and extreme cold).
Buying grains in future market is not enough, we must learn how to grow and farm. Teach your kids how to grow fruits, vegetables in your back yard. Start thinking of ways to preserve food for long periods of time. Two weeks ago I mentioned that I would start farming, and I have already started the process. I am currently traveling but as soon as I reach Santa Barbara, I will teach my daughter how to farm. By the end of the year I will show you pictures of the vegetable and fruit plants from my backyard.
Be serious about the grain crises. Grain prices have already moved up sharply. Here are last two months charts of Soy, meal, corn, wheat and oat.
Grains as a commodity outperformed every other commodities in the last six months.
Here is this week newsletter from 23-27 July 2012