Pecans: a sign of coming hyperinflation

The US and other western countries including Canada, have devalued and are intentionally devaluing their currencies in a vain attempt to remain competitive in the world market.

China is now buying up pecans, about a quarter the North American production, causing the price to shoot up by about 50%.  The Globe and Mail reports:

China bought about 100 million pounds (45 million kg) of pecans in 2009. That was about one quarter of the total pecan crop in the U.S. and Mexico, the world’s largest producers. And it compares with less than 5 million pounds roughly five years ago. The strong demand has sent prices for some pecan varieties soaring to $6.50 (U.S.) a pound, from $4.25 in January, according to Mr. Zedan.

Imagine when China raises the value of yuan against the dollar.  When that happens all commodities will shoot up in price as there will be suddenly a billion consumers with significantly increased buying power.  Meanwhile, forget about those pecan and chocolate cookies we used to eat as kids.  That will become a luxury item.  Food is skyrocketing in price and the Federal Reserve calls this “deflation”.

What if we made nuts the bellweather of inflation?  They are certainly a better indicator than the CPI.