23. The modern concept of
Strategic Food Reserves was
first proposed in the 30’s, then
further established by
Roosevelt. Then, in 2007 the
US government monetized its
entire food reserves with the
ending of the 2002 Farm bill.
24. From the LA Times:
“Cargill, the largest private company in
the world, began its business in 1865—
with a single grain silo. Today it is
believed that Cargill's global network
of silos store more grain than any
other private company…
25. But no one knows for sure because,
like the Chinese, Cargill executives
keep the amount of grain they buy,
sell and store a secret. In 2008, Cargill
parlayed its immense wheat holdings
into an 86% jump in profits on global
commodities exchanges…
26. Such windfalls during times of panic,
price hike and scarcity are not
surprising: Since the days of food
shortages in ancient Greece and
Rome, spikes in the price of bread
encourage grain bankers to hoard, not
bring more grain to market.”
-LA Times 2012
31. Our imports are getting
strained with the weak
dollar. It’s more profitable to
export! Food is an
international business. Our
own food isn’t set apart for
our citizens, it goes to the
highest bidder.
32. For example:
We sold $20 Million of Wheat to
brazil in 2012. Then, because of
political problems with
Argentina last year, Brazil
decided to buy more wheat
from the US instead of
Argentina. How much wheat do
you think we (“we” means
Cargill) sold them in 2013?
35. It’s the same reason we
export more wheat than
anyone else.
36. When another currency is
stronger than the dollar, that
country can bid higher on the
price of wheat. And those
with paychecks written in US
Dollars just have to pay more
for that food.
38. “Considering the U.S. economy as a whole,
inflation for consumer goods, including food,
was abnormally high almost across the board
starting in 1973. This coincides with a major
depreciation of the U.S. dollar that took place
in the early 1970s and raised the cost of
imported goods. At the same time, a sharp
rise in fuel and energy prices resulted from
global shortages in supply, which had ripple
effects throughout the economy and took
many years to abate.”
-USDA Article on Food Prices on April 07, 2014
39. What is China saying to us after we lost our
grain reserves?
Shift in
2008
43. Read an except from the
summary of a congressional
report:
The Depreciating Dollar: Economic
Effects and Policy Response
Craig K. Elwell
Specialist in Macroeconomic Policy
February 23, 2012
44. “A depreciating currency could affect
several aspects of U.S. economic
performance. Possible effects include
increased net exports, decreased
international purchasing power, rising
commodity prices, and upward pressure
on interest rates; if the trend is
sustained, the United states may also
experience a reduction of external debt,
possible undermining of the dollar’s
reserve currency status, and an
elevated risk of a dollar crisis.”
45. “To give Congress the economic context
in which to view the dollar’s recent and
prospective movement, this report
analyzes the evolution of the exchange
rate since its peak in 2002. It examines
several factors that are likely to
influence the dollar’s medium-term path,
what effects a depreciating dollar could
have on the economy, and how
alternative policy measures that could
be taken by the Federal Reserve, the
Treasury, and the 112th Congress might
influence the dollar’s path.”
46. Does that strike your core as
it does mine?
Is this not the exact scenario
that is unfolding before our
very eyes?
47. Are China and Cargill going
to be the only ones with the
foresight to cash in on
another multi-billion dollar
windfall decade?