Empty Stores Shelves Coming to America

And when he had opened the third seal, I heard the third beast say, 'Come and see.' And I beheld, and lo a black horse; and he that sat on him had a pair of balances in his hand. And I heard a voice in the midst of the four beasts say,' A measure of wheat for a penny, and three measures of barley for a penny; and see thou hurt not the oil and the wine.' - Revelation 6:5-6

When a laborer went into the field during the time of Jesus’ walk on the earth, the standard wage for a day’s labor was a penny a day. Of course this is not a “penny” of our day, but a coin of that day. The value of it must be measured in what it represented — payment for a day’s labor. A “measure” was approximately what a man with large hands could hold in his two hands cupped together. A measure would make a small loaf of bread — the rich ate wheat bread, the poor ate barley bread. So the picture presented here is one of great inflation — a man working all day and only being able to make enough to provide his family with one small loaf of white bread or three small loaves of barley bread. The expression “hurt not the oil and the wine” means to be very sparing in your use of them, because their price will be very expensive. - Pastor Tom McElmurry, A Measure of Wheat for a Day’s Wages!, tribulationperiod.com, February 27, 2008

The U.S. Has No Way of Avoiding a Financial Armageddon

January 1, 2010

DirectorBlue - The U.S. has no way of avoiding a financial Armageddon. Bankrupt sovereign states most commonly use the currency printing press as a solution to not having enough money to cover obligations. The alternative would be for the U.S. to renege on its existing debt and obligations, a solution for modern sovereign states rarely seen outside of governments overthrown in revolution, and a solution with no happier ending than simply printing the needed money. With the creation of massive amounts of new fiat dollars (not backed by gold or silver) will come the eventual destruction of the value of the U.S. dollar and related dollar-denominated paper assets.

What lies ahead will be extremely difficult, painful and unhappy times for many in the United States. The functioning and adaptation of the U.S. economy and financial markets to a hyperinflation likely would be particularly disruptive. Trouble could range from turmoil in the food distribution chain to electronic cash and credit systems unable to handle rapidly changing circumstances. The situation quickly would devolve from a deepening depression, to an intensifying hyperinflationary great depression ...

Hyperinflation in Zimbabwe, the former Rhodesia, was a quadrillion times worse than it was in Weimar Germany. Zimbabwe went through a number of years of high inflation, with an accelerating hyperinflation from 2006 to 2009, when the currency was abandoned. Through three devaluations, excess zeros repeatedly were lopped off notes as high as 100 trillion Zimbabwe dollars.

The cumulative devaluation of the Zimbabwe dollar was such that a stack of 100,000,000,000,000,000,000,000,000 (26 zeros) two dollar bills (if they were printed) in the peak hyperinflation would have be needed to equal in value what a single original Zimbabwe two-dollar bill of 1978 had been worth. Such a pile of bills literally would be light years high, stretching from the Earth to the Andromeda Galaxy.

In early-2009, the governor of the Zimbabwe Reserve Bank indicated he felt his actions in printing money were vindicated by the recent actions of the U.S. Federal Reserve. If the U.S. went through a hyperinflation like that of Zimbabwe’s, total U.S. federal debt and obligations (roughly $75 trillion with unfunded liabilities) could be paid off for much less than a current penny.

What helped to enable the evolution of the Zimbabwe monetary excesses over the years, while still having something of a functioning economy, was the back-up of a well functioning black market in U.S. dollars. The United States has no such backup system, however, with implications for a more rapid and disruptive hyperinflation than seen in Zimbabwe, when it hits.

U.S. Government Wheat Stocks Collapse

July 22, 2008

Barter News - Quietly, the last of the U.S. government’s wheat reserves, held in the Bill Emerson Humanitarian Trust, were sold in late May onto the domestic market for cash. The cash was put in a trust for food aid. With no other government wheat holdings, U.S. government wheat stocks are now totally exhausted [see CCC inventory].

The following recent statements by Rebecca Bratter, director of policy for U.S. Wheat Associates, provides insights:

“While the U.S. wheat industry strongly supports the administration’s goal of maintaining current food aid programs to prevent rampant hunger worldwide, there is concern regarding the impact of selling reserve wheat on the domestic market and over the lack of commitment from the administration to replenish the Bill Emerson Humanitarian Trust.

“U.S. Wheat Associates has shared these concerns with high officials at USDA and on the President’s staff and has asked about the Administration’s intent regarding replenishment of the Bill Emerson Humanitarian Trust. Staff from the office of the President’s Special Agricultural Assistant noted that while there is no commitment at this time, the administration intends to replenish the Trust once the supply and price scenario stabilizes.”

(Note: U.S. Wheat Associates works in 90 countries promoting U.S. wheat exports.)

The Bill Emerson Humanitarian Trust was established in 1980 by an act of Congress and is authorized to hold up to 4 million metric tons of wheat, corn, sorghum and rice, as a reserve for global food crises. The wheat is purchased and managed by the Commodity Credit Corporation and included in the total amount of wheat owned and held by the U.S. government. Holdings by the BEH Trust for corn, sorghum and rice are also zero.

For the decade of the ‘80s, government wheat holdings (including those in the BEH Trust) averaged 358 million bushels. For the decade of the ‘90s, government wheat holdings averaged 133 million bushels. Since 2000, government wheat holdings dropped steadily until recently when the last of the government-owned wheat was sold.

With no formal plan for wheat stocks by the U.S. government, wheat stocks have defaulted to the arena of the private free-market sector. Unfortunately, the private sector has no plans for any kind of minimum wheat stocks that would protect the American public from a price and/or availability standpoint.

Private wheat stocks are divided into two major categories — on-farm wheat stocks owned by farmers, and off-farm wheat stocks owned by warehouses and grain companies. These two together held 305.6 million bushels of wheat as of June 1 (or roughly 1 bushel per person living in the United States) the lowest level in 60 years.

Of these stocks, on-farm wheat stocks are at 25.6 million bushels, the lowest level of on-farm wheat stocks since the USDA started keeping tabs back in 1934. So as you are driving in rural America before wheat harvest, the farmer’s bins have never been so empty.

The USDA, projects America to have a bumper wheat crop in 2008, producing 2.43 billion bushels and consuming and exporting 2.30 billion bushels. This leaves a meager 133 million bushels (5.5 percent of production) as a margin for error. Globally, the USDA projects wheat production to be 24.36 billion bushels, consumption to be 23.74 billion bushels for a relatively smaller margin of 622 million bushels or 2.6% of production.

The recent wheat crises in America was sparked by the nation exporting more wheat than it produced. This means the true 2008 wheat margin for Americans is really the global margin of 2.6%. Any decline from global projections could precipitate greater wheat exports from America and further draw down already low domestic and global wheat stocks.

Food security is emerging as a global focal point. With the U.S. government and the private sector lacking visions for stocks, food security is poised to grow as a grass-roots issue around the nation.

Grain is the Foundation of the World's Diet

Since the beginning of agriculture, farmers have recognized the need to manage stocks of grain to prevent starvation in times of scarcity. In the Hebrew Bible, the Egyptians were directed to stockpile seven years of harvests in preparation for seven years of famine. The primary purpose of grain reserves is to help cope with food emergencies, but grain reserves are also used to stabilize grain prices and as a loan commodity.

Food security in the fullest sense would mean that all people at all times have access to adequate quantities of safe and nutritious food. To ensure food security, many countries stockpile strategic grain reserves (SGRs). Grains are an easy-to-store and nutritious way to provide the basic needs of a population facing a food emergency until alternative food supplies can be arranged. Food emergencies can result from natural causes, such as pest outbreaks sparked by drought, floods, storms, earthquakes, or crop failures, as well as from war and terrorism.

World Hunger and Grain Reserves

In 1977 the General Assembly of the Unitarian Universalist Association urged and called upon member societies to urge the governments of the United States and Canada to establish national grain reserves and to demonstrate willingness to participate in concert with other large grain-producing countries in a world food bank. The factors leading to this resolution where as follows:

• Millions of people may die in the next few years because of inadequate world grain reserves; and drought and other causes have rendered grain production unstable, which drives prices up and forces poorer countries out of the world grain market;
• It has been demonstrated that when adequate world grain reserves are maintained, price fluctuations are minimized even in times of small harvests;
• The United States, Canada and other large grain producers hold the key to stable world-wide food reserves that have been allowed to dwindle to a fraction of their former levels; and
• The United States, Canada and other large grain producers, through climatic and other circumstances, may themselves experience shortage.

Read More: The 2008 Global Food Crisis Is Not Over