A Few Facts About the Economy and More Crop Losses

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Inflation has pushed up overall prices 11.3% in the last 5 years, which means items you paid $100 for in 2006 would cost

almost $112 today, according to the U.S. Bureau of Labor Statistics. What does this really means for you? If you currently

spend $500.00 a month on food, fuel, clothing, entertainment, etc. you are now paying an extra $62.00 or an extra $744.00

per year. Naturally if your budget is more like $1500.00 per month that is $2232.00 per year.


With more than 14 million U.S. workers out of work, and those who have jobs and have received raises over the past few

years just treading water times are grim. Average weekly wages, when adjusted for inflation, have increased just 1.4%

since June 2006 and have fallen 1.4% in the last year, the BLS reported this month. In other words all wage increases

since 2006 have been wiped out. Real weekly wages have increased just 2.1% since 1981. If you made $100.00 in 1981

you would now be making $102.10, however, to purchase an items that cost $100.00 in 1981 will now cost $199.99.

Now…last night I spoke with my son who is waiting for his brother in law to return from Argentina. He couldn't get home

because all flights were canceled due to a volcano in Chile which has be erupting for the past six weeks. Have you heard

about this? Why is the media ignoring this when it has real consequences for all of us?


"The ash cloud from a Chilean volcano is hovering over Buenos Aires again, grounding flights between the Argentine capital

and many nearby airports. But officials say flights from Argentina's main international airport southwest of the city have

returned to normal. Airlines flying in Argentina have suffered for most of the 53 days since Chile's Cordon Caulle volcano began erupting.”


These same ash clouds have grounded planes in Australia and New Zealand for weeks. For those not traveling the really

bad news is the toll this is taking on crops in Argentina and Chile.


"In Bariloche, the mountain resort city just 100 miles from the Chilean volcano, dense ash lying in thick layers made

soggy by rain caused power and telephone outages and forced authorities to suspend classes. TV reports showed a

city whose streets were deserted. The roofs of dozens of houses, mainly in low-income districts, collapsed under

the weight of the ash.


Farm officials were concerned about the prolonged eruption's continued effect on the 2 million head of sheep that graze

in southern Argentina. Farmers in Chubut and Rio Negro areas said they have suffered five years of drought and the

ash could destroy the little pastureland still serviceable. Rio Negro officials said 60,000 head of cattle also are "at risk."


Another reason for food prices to rise this fall.




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One Response to “A Few Facts About the Economy and More Crop Losses”

  1. Try not to pay attention to the indexes, most don't seem to track what really needs to be tracked. And, even if you do choose to believe in them, chances are you'll just give yourself an ulcer stressing about them going down too fast or up too slow!

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