It was announced Feb. 14th, 2011 that due to the huge demand for corn, food prices will take a large increase. From the price of beef to soft drinks, margarine to breakfast cereals, this increase will have an impact on every consumer: In their pocket book.
The U.S. Department of Agriculture warned that corn supplies are at their tightest levels in over 15 years. Why would that be, you ask? The answer is two fold. First, the situation has been compounded by government incentives to boost corn-based ethanol production. And second, world corn prices have also been driven up because China, with its population of 1.3 billion people, is stockpiling food staples such as corn.
On Thursday, January 27, 2011, DuPont (Pioneer Hi-Bred) and Syngenta, the world’s No. 3 supplier of corn seed, announced that the two seed conglomerates developed two new varieties of seed for new drought-tolerant corn varieties and will be in limited release this spring. They are targeted for farmers on the western edge of the US Corn Belt. Wait just a minute here. The stock supply of corn is at a fifteen year limited volume and DuPont along with Syngenta are making these two new breeds available only in limited supplies and to a small western edge of the United States? And this is going to help to increase the shortage that now looms? Of coarse it won’t. But it will increase the fat and healthy profits for those two corporations by charging more money for their product and adding a healthy price increase to food staples. But not the farmer. Don’t forget the middle-man. All those Marketing Boards will get their fair share also. Again, not the farmer.
Guess where the corn growers have to buy the pesticides to ensure these new strains of seed grow to fruition? Right you are. DuPont and only DuPont. Otherwise the crop will most likely fail. Isn’t greed wonderful?
And while we are on the subject of greed, there is the Monsanto Company with Headquarters in Creve Coeur, Missouri, U.S. Monsanto is a U.S.-based multinational agricultural biotechnology corporation. providing the technology in 90% of the world's genetically engineered seeds. Monsanto's development and marketing of genetically engineered seed and bovine growth hormone, as well as its aggressive litigation, political lobbying practices, seed commercialization practices and "strong-arming" of the seed industry have made the company controversial around the world and a primary target of the alter-globalization movement and environmental activists. As a result of its business strategies and licensing agreements, Monsanto came under investigation by the U.S. Justice Department in 2009. Do you know how to say ”Monopoly”? Not the board game.
I’m going to cut to the chase here. How do we stop the price of our staples increasing from a shortage of corn supply? An extremely simple solution. Don’t sell China corn. Set a moratorium on it’s export until such time as our own stocks have reached a point of sustainability for our own country. Also, get rid of those dastardly Marketing Boards that make billions of dollars off the hard working farmer and do nothing for them but gouge and forcing bankruptcy upon them and their families. Limit your use of Ethanol for the same reason.
One other bone of contention with me. Have you ever gone to the bank, for example, and asked to purchase American dollars with your Canadian dollars (or whatever currency you deal with) when the Canadian dollar is quoted at the American exchange rate of .98 cents to the Canadian dollar? That to me means that I should get $1.02 American for every Canadian $1.00. The bank teller says to me “Not so Mr. Adie-Riley. You see, you will have to ‘buy’ that American dollar from for a premium and that rate is 5%. So for every dollar American you want to purchase, you will owe me $1.03 Canadian. You see, it’s a product or a commodity and not money at all. And when you want to exchange it back to Canadian dollars I’ll buy it back at a premium again and have to charge you a second time.” Is this greed by the financial institutions around the world (as they all do this)? No. It’s legalized fraud. Here’s another way of looking at it. Your mortgage is a commodity or product (money). So is your car insurance, your life insurance and your RRSP’s (401K’s U.S.)
The next time I buy groceries I will ask the cashier if she would mind if I paid for my items by means of a product instead. Should be an interesting quizzical look I get back. Try it yourself and see what happens.