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[bob ford <bobford79 AT yahoo.com>]

You missed a really imporatnt part.  What happens when the people who hold 
the eggs will no longer sell them to you at 'any' price.  This begins in a 
process called "backwardation" ( it is a complicated economic term that 
basically means that future priceas become 'cheaper' than present prices).  

This has recently happened in many commodities.  that can work itself outm, 
generally.  The most frightening thing that has happenend, happened four days 
ago.  For the first time in modern economic history, it occured with gold.  

Gold is not just a commodity, it is also a currency.  With gold showing 
bacwardatiobn, james' idea of a future worldwide Zimbabwe becomes a 
possibilit  -- Not a probability, but for the first time, a 'true' 
possibility.......................................

_________________________________________________________________________

--- On Sat, 12/6/08, Leslie <cayadopi AT yahoo.com> wrote:

> From: Leslie <cayadopi AT yahoo.com>
> Subject: [Homestead] US -China: Free Farm Trade Agreement
> To: homestead AT lists.ibiblio.org
> Date: Saturday, December 6, 2008, 8:57 AM
> headline: 
> http://finance.yahoo.com/news/US-ag-chief-China-US-agree-on-apf-13763833.html
>  
> On the surface, this would seem like a good idea, to create
> exports for farmers and therefore a monetary contribution to
> the collapsing US economy.  But I suggest we look deeper
> at how currency rates could come into play with this ----
> and the depression versus hyper-inflation debate which I
> 've been studying for a number of years now.
>  
> It starts with understanding that
> goods/services/commodities price inflation is caused by
> governments creating money out of thin air.  Central
> bankers "provide liquidity" in part by adding
> money to the money supply.  This devalues the purchasing
> power of currency.
>  
> 
>  
> (if I'm not allowed to insert charts etc - click on
> this link http://www.shadowstats.com/ slide down to see the
> chart on the right side YOY monetary base)
>  
> The US Fed is inflating the money supply at an historical
> rate, and are now embarking on the path of monetizing the
> debt - the final nail in the coffin.  This will have
> unavoidable effects down the road - it leads to the road to
> hyperinflation.
>  
> A simple explanation to understand that the Central Bankers
> of the world, including the Fed, are the cause of inflation,
> as opposed to their charter of supposedly controlling
> inflation:
>  
> 12 people (represent all people)
> 12 eggs (represent all goods/services produced)
> 12 dollars (represent all currency in existence)
>  
> Regardless of how many of the 12 people at any one time,
> create a demand for buying eggs,,, the grand total of all
> eggs can never be more than $12.00.  The ceiling on price
> is limited by the total amount of money in circulation.
>  
> Now, add in the Fed's printing press (see the chart
> above and look good at 2008).
>  
> 12 people (represent all people)
> 12 eggs (represent all goods/services produced)
> 24 dollars (represent all currency in existence)
>  
> While the population hasn't changed, and the number of
> eggs hasn't changed, the grand total of all eggs can now
> be double $24.00.  Monetary induced inflation - not
> supply/demand.
>  
> While there may be fluctuations from time to time in
> individual "things" we buy (demand) the grand
> total doesn't change much.  
>  
> Soooooooooo back to my concerns about the topic.
>  
> When the US Fed iniflaties the money supply, which is a
> known fact, the outcome is two-fold - one inflation is just
> over the horizon, and two, the US Dollar devalues relative
> to other currencies (which is important in international
> trade).
>  
> What our stupid government  is proposing ignores is the
> effect the inflating money supply has on imports down the
> road.  Down the road when the dollar resumes falling
> relative to other currencies - our imports will become more
> expensive to us,,,, and cheaper to places like China. 
> China will be able to buy up our food supply CHEAP on the
> currency conversion.  And our government has just inked a
> deal to do just that.  The Chinese population using cheap
> currency conversions will raise prices thru huge demand.  
>  
> I believe the effect here will be food shortages, on top of
> food shortages we will be experiencing when the price of
> fuel resumes its uptrend.  (More on that and why oil will
> rise, in a bit).
>  
> Leslie
>  
> PS  Yes, massive deflation of assets [stocks, commodities,
> real estate] are currently ongoing.  The bond bubble is the
> next bubble that will burst.  
>  
> Another topic.... as inflation in commodities will resume
> when the M1 money supply created this year starts the
> trickle down process.  
>  
> Ahhh, and I see Ayn Rand fans........ you'll love my
> Greenspan Theory... 
>  
>  
> 
> 
>       
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