The Global Food Shortage: Stock Up Now

This theme may not be new but has gained momentum as of late. All over the news there are stories of rising food prices, shortages and even ensuing riots. The Wall Street Journal is now one amongst many that are advising people to stock up on basic food items as a hedge against continuing rising prices and possible shortages. The WSJ article does a good job of describing the dynamics of this complex situation and shows how we are all connected and affected by a global food economy.

From The WSJ:

I don’t want to alarm anybody, but maybe it’s time for Americans to start stockpiling food.

No, this is not a drill.

You’ve seen the TV footage of food riots in parts of the developing world. Yes, they’re a long way away from the U.S. But most foodstuffs operate in a global market. When the cost of wheat soars in Asia, it will do the same here.

Reality: Food prices are already rising here much faster than the returns you are likely to get from keeping your money in a bank or money-market fund. And there are very good reasons to believe prices on the shelves are about to start rising a lot faster.

WSJ: Load Up The Pantry