Stuart Varney on why food prices have skyrocketed in past year

Monty Pelerin has a great post on how government statistics are lying to people about inflation.  He makes an appeal to the real inflation in food prices.  While the excessive creation (electronically not via printing) of fiat money results in high food prices, the EPA has just decided to increase the ethanol content of gasoline to 15% from 10%.  This will not help food prices either, since it is more lucrative for farmers to receive a government subsidy to grow corn for ethanol than for food or for livestock feed.

The Bible treats agricultural growth as a direct gift from God himself.  For us to take our grains a piss them into cars because of worry that God can’t keep the planet from turning into a ball of fire is something that will ultimately lead to His judgment of our society.  It is immoral to burn food in cars.  We have abundant petroleum products are for that purpose.  Meanwhile, Americans (and yes, we in Canada) are feeling the pinch of inflation.  This is just going to get worse, much worse, as central banks around the world solve their sovereign debt and other insolvency issues through the creation of more fiat money.   Monty Pelerin has another excellent post (Why High Inflation Is Inevitable) explaining why the Bernanke must continue to ease–the US government is insolvent.  If the Bernanke doesn’t ease, the politicians will fire him and replace him with someone who will.  Food, energy and other costs of the real things people need will continue to pinch people’s budgets until it will cost one’s entire wages just to survive.  That what happened in Weimar.

Hat tip: Monty Pelerin

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