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Can a Food Shortage Be In Our Future?

By: J. Stromsteen

Is it possible for a rich nation such as America to face a possible food shortage in the future?

In short the answer is yes.

The NY Sun recently ran a story about the surfacing of some food shortages in some areas of the US. It appears that this may be a precursor of what is to come. How can this happen? The answer is in the fact that there are several things that contribute to shortages in whole.

Traditionally, there has been enough food for everyone on the planet. That is changing. The world is bumping up against maximum capacity in many commodities. Oil is a primary one. The world is not running out of oil anytime soon. However, the world has tapped most of the easy oil fields. There is plenty more oil available, but it is getting more and more expensive to extract. There is only so much available that is easy to get to. The same applies to mines. There is only so much ore that easy to mine. There is more ore available, but it isn't economically feasible at today's prices to mine.

We are experiencing the same situation with the world's mines. There is not a shortage of ore but we just can't affordably get at it. Essentially this means that there is only a limited supply available at affordable prices. The higher the cost of supplies the fewer people that can afford it; this will of course increase the supplies at unaffordable prices.

Food is not left out of this variable. Again, there is just so much food available in the world; much of it is exported and imported to the highest bidder. At one time the US had a very strong currency and would easily be the top bidder in any market; however, in recent years this has changed. The value of the US dollar has been declining steadily over the last few years. The US is now being outbid by other countries when trying to obtain commodities. China is leading the world in outbidding the US for needed commodities.

This trend will continue. As the US continues to print more and more money, and water down the value of its currency in the process, the US will find itself with less and less ability to be top bidder in the battle to buy enough resources.

The above scenario regarding area food shortage is the predecessor of a number of very shocking changes America is heading for. As a country we have overspent and under managed our budget for decades and we are going to be faced with a grim reality.

Hang on; it's going to be a rough ride.

Article Source: http://www.articlebankonline.com

Besides her own website, Cheap Auto Insurance, J. Stromsteen contributes to the website Bush's Depression as well as first time home buyer to provide up to date information on the developing financial crisis.

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