Yes, this too will pass, but in the mean time I am trying to be mindful of where the risks and opportunities lie in wait. For instance.......
1 )More mainstream news sources are starting to catch the idea (that I suggested a while ago) that rising food prices may lead to civil unrest. See here. This possibility is in no way certain, but is something to bear mind.
2) More so, the price of grains and other grown agricultural commodities are starting to rise world-wide. Here is a story out of China citing the rise in fruits and vegetables due to poor weather patterns across the country.
An excerpt
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The wholesale prices of 18 types of vegetables in 36 cities rose for the fourth consecutive week, up 2.9 percent week-on-week and 15.4 percent cumulatively over the past four weeks, according to the MOC.
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3) While Bloomberg is reporting that rising authorities in China are reluctant to enact any monetary stimulus programs due to the specter of inflation. You would have to think the same conversations are also taking place in the central banks around the world.
4) More worrisome and less reported... The drought and subsequent water shortages are hitting the power supply here in the U.S. This story from the New Scientist and details how the lack of water supplies is hurting some power produces.
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Power plants are a hidden casualty of droughts, says Barbara Carney of the National Energy Technology Laboratory (NETL) in Morgantown, West Virginia, because they are completely dependent on water for cooling and make up about half the water usage in the US. That makes them vulnerable in a heat wave. If water levels in the rivers that cool them drop too low, the power plant – already overworked from the heat – won't be able to draw in enough water. In addition, if the cooling water discharged from a plant raises already-hot river temperatures above certain thresholds, environmental regulations require the plant to shut down.
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5) This article also glazes over the issue of water supply shortages and the process of fracking. Fracking involves injecting high volumes of water deep underground in order to extract the methane and oil from shale deposits. A lack of water will have the effect of reducing energy supplies.
6) I am also hearing word about drought conditions forcing farmers to bring their cattle, hogs, and other protein to slaughter sooner than they otherwise would, as lack of water and availability of grains to feed their herds makes sooner slaughter more of an economic necessity.
Since the beginning of July, cattle futures are up only marginally while hog futures are down. This compares to corn, wheat, and soybean prices that have increased significantly in the same period. Is the increased supply holding back the price of protein? And if so, will the lack of supply cause price increase months down the line?
1 )More mainstream news sources are starting to catch the idea (that I suggested a while ago) that rising food prices may lead to civil unrest. See here. This possibility is in no way certain, but is something to bear mind.
2) More so, the price of grains and other grown agricultural commodities are starting to rise world-wide. Here is a story out of China citing the rise in fruits and vegetables due to poor weather patterns across the country.
An excerpt
-------------------------------------------------------------------------------------------------------
The wholesale prices of 18 types of vegetables in 36 cities rose for the fourth consecutive week, up 2.9 percent week-on-week and 15.4 percent cumulatively over the past four weeks, according to the MOC.
---------------------------------------------------------------------------------------------------------
3) While Bloomberg is reporting that rising authorities in China are reluctant to enact any monetary stimulus programs due to the specter of inflation. You would have to think the same conversations are also taking place in the central banks around the world.
4) More worrisome and less reported... The drought and subsequent water shortages are hitting the power supply here in the U.S. This story from the New Scientist and details how the lack of water supplies is hurting some power produces.
---------------------------------------------------------------------------------------------------------
Power plants are a hidden casualty of droughts, says Barbara Carney of the National Energy Technology Laboratory (NETL) in Morgantown, West Virginia, because they are completely dependent on water for cooling and make up about half the water usage in the US. That makes them vulnerable in a heat wave. If water levels in the rivers that cool them drop too low, the power plant – already overworked from the heat – won't be able to draw in enough water. In addition, if the cooling water discharged from a plant raises already-hot river temperatures above certain thresholds, environmental regulations require the plant to shut down.
---------------------------------------------------------------------------------------------------------
5) This article also glazes over the issue of water supply shortages and the process of fracking. Fracking involves injecting high volumes of water deep underground in order to extract the methane and oil from shale deposits. A lack of water will have the effect of reducing energy supplies.
6) I am also hearing word about drought conditions forcing farmers to bring their cattle, hogs, and other protein to slaughter sooner than they otherwise would, as lack of water and availability of grains to feed their herds makes sooner slaughter more of an economic necessity.
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