Zero Hedge reports:
One of the benefits of America finally seeing what Zimbabwe went through as it entered hyperinflation, ignoring for a second that the Zimbabwe stock market was the best performing market, putting Bernanke’s liquidity pump to shame, is that very soon everyone will be naked, once companies finally realize they have no choice but to pass through surging input costs. And while some may be ecstatic by the S&P’s modest rise YTD, it is nothing compared to what virtually every single agricultural product has done in the first month of 2011. To wit: Corn spot up 7.76%, wheat up 5.63%, Rice up 10.08%, Hogs up 10.16%, Sugar up 5.64%, Orange Juice up 3.33%, and cotton…. up 17.08%. That’s in one month!
A monthly increase of 2.2% in prices equates to a 26% annual increase in prices.
Annual inflation >26% over a period of three years is considered hyper-inflation by the International Accounting Standards Board. This trend in accelerating inflation rates in commodities has been on going for the past several months now.
It shouldn’t be too much longer now.
The real unrest will start to unfold when food prices rise out of reach for the average consumer.
America is about to go on a much needed diet plan, courtesy of the Federal Reserve and our criminal government.
Oh, speaking of food:
400K increase in food stamp participation last month, putting the grand total at 43.6 million people out of 310 million receiving food stamps.
You should all be maxing out your credit cards right now to buy up bulk food, silver, gold, ammunition, and firearms.
Six month price differences:
Cotton: was 80, now 167
Commodity Food and Beverage Price Index Monthly Price: was 147, now 178
Commodity Industrial Inputs Price Index Monthly Price: was 145, now 175
Commodity Metals Price Index Monthly Price: was 164, now 194
That is a 40% annual inflation rate.
That is 14% above what the IAB considers hyper-inflation rates.
I am not a professional investor and the advice I offer is my opinion only. With any investment comes risk, as well as the possibility of reward. Accept or ignore my advice at your own peril.