{"id":56560,"date":"2021-01-30T08:21:38","date_gmt":"2021-01-30T13:21:38","guid":{"rendered":"https:\/\/olduvai.ca\/?p=56560"},"modified":"2021-01-30T08:21:38","modified_gmt":"2021-01-30T13:21:38","slug":"this-potentially-catastrophic-inflation-surge-slipped-under-the-radar-until-now","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=56560","title":{"rendered":"This Potentially Catastrophic Inflation Surge Slipped Under the Radar (Until Now)"},"content":{"rendered":"
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This Potentially Catastrophic Inflation Surge Slipped Under the Radar (Until Now)<\/a><\/h3>\n<\/div>\n<\/div>\n<\/section>\n
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\"Why<\/div>\n
\"FAO<\/p>\n

The FAO Food Price Index (FFPI) averaged 107.5 points in December 2020, up 2.3 points (2.2 percent) from November, marking the seventh month of consecutive increase.<\/p>\n<\/div>\n

You\u2019ve read about\u00a0housing market bubbles<\/a>,\u00a0stock bubbles<\/a>, and even\u00a0credit bubbles<\/a>. But the next bubble you\u2019re about to discover could be even more dangerous, and may have even more far-reaching consequences.<\/p>\n

It\u2019s called a\u00a0food price<\/strong>\u00a0bubble, and it\u2019s been inflating under our noses since March 2020. You can also see the dangerous trajectory it\u2019s on compared to three previous years in the\u00a0FAO<\/a>\u00a0chart.<\/p>\n

The official January 7, 2021\u00a0release<\/a>\u00a0from the Food and Agriculture Organization explains the chart above in more detail.<\/p>\n

And according to a Business Insider\u00a0piece<\/a>, grain has risen in price\u00a050%<\/strong>\u00a0over the last six months while other commodities like industrial metals are starting to\u00a0drop<\/em>\u00a0in price.<\/p>\n

In fact, according to an official\u00a0source<\/a>, food price inflation has risen each month by\u00a0at least 3.5%<\/strong>\u00a0(year over year) since April 2020 both at home\u00a0and<\/em>\u00a0away from home.<\/p>\n

And December didn\u2019t show any signs of that trend letting up, with a price increase of\u00a03.9%\u00a0<\/strong>over December 2019. Keep in mind, we\u2019re talking about\u00a0food<\/em>\u00a0here. Technically this price surge isn\u2019t a bubble \u2011 it\u2019s inflation.<\/p>\n

This is exactly what we expect to see when the Fed\u2019s loose-money policies support bubbles in the housing, stock and credit markets. An excess of currency chasing a fixed supply of paper assets inflates prices, which isn\u2019t a big problem as long as the feeding frenzy stays contained in the paper asset markets. So long as amateur day-traders stick to playing stock-market roulette with the likes of Tesla and GameStop, the day-to-day world can go about business as usual.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

This Potentially Catastrophic Inflation Surge Slipped Under the Radar (Until Now) The FAO Food Price Index (FFPI) averaged 107.5 points in December 2020, up 2.3 points (2.2 percent) from November, marking the seventh month of consecutive increase. You\u2019ve read about\u00a0housing market bubbles,\u00a0stock bubbles, and even\u00a0credit bubbles. But the next bubble you\u2019re about to discover could […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[18769,124,303,322,426,3650],"class_list":["post-56560","post","type-post","status-publish","format-standard","hentry","category-economics","tag-birch-gold-group","tag-central-banks","tag-fed","tag-food-prices","tag-inflation","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/56560","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=56560"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/56560\/revisions"}],"predecessor-version":[{"id":56561,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/56560\/revisions\/56561"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=56560"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=56560"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=56560"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}