As if that news isn't enough to get you moving consider this… Food commodity prices are soaring. Please remember that food prices and the price of items we must have, such as clothing are based on a world economy, not a national one. I'm sure many of you are aware of the floods in Australia. Did you understand that the area flooded is as big as Texas and New Mexico combined, or in other terms, as big as France and Germany combined? There are 11,000 homes underwater. What does that have to do with anything in the U.S., Canada, or Europe? First, we import beef from Australia. Since herds of cattle have been lost the price will go up. Add to that the fact that the price of corn is skyrocketing and the cattle we produce in the United States eat that corn, thus the price of domestic beef will go up. Then, add to that the cost of fuel to transport that beef to slaughter houses and then to stores. Yes, beef prices are going to go up!
Oh, but Australia also exports large amounts of the world's wool. Well, those animals have been lost too so we know the price of wool will go up but that's not all. Since wool prices will rise the wool will need to be replaced by another fiber so today, cotton trades at the highest price ever…ever! That translates into everything from clothing to upholstery and cotton balls. Did you store those when I asked you to last year? How about TP, that's cotton too!
That may still have you feeling like you won't really be affected too much. Okay…What if I told you there are shortages of corn, sugar, rice, coffee and wheat? It's true and the United States Department of Agriculture has announced that harvest will be short for the next two seasons.
Let's revisit oil prices. Oil is used in everything. According to the U.S. Department of transportation nearly 35 gallons of every 42-gallon barrel of crude oil is used for transportation fuel. The rest goes into the consumer products we use on a daily basis. What, you ask? Guitar strings, Pantyhose, Golf bags, Backpacks, Dentures, Candles, Hair coloring, Aspirin, Footballs, Basketballs and Soccer balls, Food preservatives, Shampoo, Makeup, Bedding, Paint, Bandages, Dishes, Flooring, even Heart valves.
Oil prices are at $92.00 a barrel today. The all time high was $147.00 a barrel. Experts tell us if prices rise to that level again, and they are going up each day, we can expect consumer goods to go up by 60%.
There are already places where rioting is taking place due to lack of food and escalating food prices. Could that happen here? What do you think? Do you remember the rioting after jury decisions elements of the public disagreed with? If they would riot over that what do you think they would do if their children were hungry? We in the United States, Canada and many other nations are spoiled. As a nation we have not been hungry, really hungry. We have not been homeless. Really homeless.
I will end as I began. I am hopeful. I hope these forecasts are wrong. I hope oil prices go down. I hope the weather in the U.S. improves and we have huge harvests, but…I am preparing as though the worst may happen. I hope you are doing the same.
Please follow the Monday posts for Food Storage 101, please stock your General Store shelves each week, please listen to READY OR NOT each Tuesday night and Please, Please ask questions so you can get the help you need to succeed.
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