3/15/2008

Ruinous Inflation...it's HERE

Pigs and cows eat corn. Corn is grown. When most of the corn goes to a manufactured phony need such as ethanol instead of animal food what do you think happens? Well demand goes up. The price of corn goes up. Pretty soon the people who have to pay for the corn to feed the animals eventually cannot afford it. Each head of cattle consumes 25 pounds of corn per day and (all cattle together consume 6 billion bushels per year). When feed costs get too high what happens? They kill off all the herds early. The supply starts to shrink to near starvation levels and the price of meat goes God only knows where. When we get to soybeans we find that all livestock in the U.S. combined consume 98 million bushels. Suck any supply off and soy meal becomes too expensive (currently at all time highs). Neither Republicans or Democrats are willing to hear the truth and ACT upon it. Look for hamburger to go to $8 a pound by the middle of next summer.

Right now the U.S. herds are shrinking, the weights of both cattle and hogs up for slaughter are dropping as everyone basically throws in the towel on feed costs. Unless this phony ethanol craze is ended the price of corn will result in little or no meat. It takes seven years to rebuild a cattle herd. I think we are fucked.

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