Tuesday, February 08, 2011

Is a food price bubble coming?

Disquieting news on the Chinese drought.  Plus, unusual cold weather.  Because China has been self sufficient, they haven't made a big impression on global agriculture. As the article makes clear, if China has a food shortage, they have plenty of currency reserves to bid for the price of available wheat and corn.

1 comment:

JLM said...

And only a year ago we were worried silly about deflation! Now Wall Street is engineering one "inflation-protection" product after another.

Hard-won knowledge from the 20th century: Stocks are a great inflation hedge in the long run, but only because they go up after the inflation is over.