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Hoarding is exactly what the government is doing right now by filling the SPR, and frankly it's the best thing that could happen. It drives prices up. High prices encourage demand destruction. They also finance new well development. The hoarded oil gives us a buffer to fall back on once shortages become more prevalent. High prices are what we need in order to adapt to what's coming, and the sooner they happen, the better.

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Grain Drain: Get Ready for Peak Grain
Consumption; Demand; PricesNow’s the time to brace yourself for major price hikes in food, as peak grains join the lineup of lifestyle-changing events along with peak oil and peak water.

Unless this year’s harvest is unexpectedly different from six out of the last seven years, the world’s ever-decreasing number of farmers do not produce enough staple grains to feed the world’s ever-increasing number of people. That’s been a crisis of quiet desperation over the past decade for the 15,000 people who die each day from hunger-related causes. It’s about to cause a problem for people who assumed that the sheer unavailability of food basics, usually seen as a problem of dire poverty, would never cause a problem for them.


Whenever there’s a shortfall in the amount of food produced in any given year, it’s possible to dip into an international cupboard or “reserve” of grains (wheat, rice and corn, for example) left over from previous years of good harvests. Tabs have been kept on the size of that reserve by the U.S. Department of Agriculture since the end of World War 11. Few people looked at these tables until Lester Brown cried the alarm a few months ago, a short while after Darin Qualman, brilliant researcher with Canada’s National Farmers Union, one of the few farm organizations which thinks agriculture policy should be about feeding people, not finding new ways to raise commodity prices by getting rid of farm surplus.

The world’s grain reserve has been dipped into for six of the last seven years, and is now at its lowest point since the early 1970s. There’s enough in the cupboard to keep people alive on basic grains for 57 days. Two months of survival foods is all that separates mass starvation from drought, plagues of locusts and other pests, or wars and violence that disrupt farming, all of which are more plentiful than food.

Energy Bulletin

Posted on Tuesday, October 31 @ 09:38:19 PST by leanan
 
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