"Let them eat cake"!! - Will Washington soon be .....

..... uttering those famous words to us? I went to my local grocery store yesterday and bought a loaf of bread (same brand - same size) and was plumb surprised to see that the price had risen 41¢ per loaf. That may not seem like much Buckaroos, but it is an overnight increase of 30% on this staple of life! This morning, in another major store, I checked the price of the exact same loaf of bread -- and there too, it had risen by 31%.

Now then, I had been preparing for slow increase in wheat based products because so many wheat farmers had converted to corn to take advantage of this government ethanol debacle. But I had not expected this big of a hit this quick. Fortunately, with the world at my fingertips with this access to the Internet the story unfolds... and it's gonna get worse folks.

Not only are wheat farmers and wheat farming countries harvesting less wheat, but the rapidly increasing populations and modernizing populations are consuming more -- thereby driving the price and availability of wheat skyward. Here are a couple of charts ----

India alone, has become a net importer of five million tons (not bushels) of wheat per year compared to being a net exported of five million tons just four years ago. And that's just one industrializing country! Now look at the price per bushel rising from $3 two years ago to $8 currently!

Couple this world wide reversal in wheat supplies with the current increase in the price of corn caused by the ethanol foolishness .... and it doesn't take a rocket scientist to figure that as goes the price of corn tortillas and wheat bread... so goes the price of beef, pork, poultry and all the other food products. Our government fears a recession ----- what they ought to be fearing, as should you and this ole' boy, is STAGFLATION!! Remember that word out of the past? Recession coupled with rampant inflation? ...

And the really scary part --- there ain't no Ronald Reagan out there to help bring us out of it. If the Dems win big this fall, they'll raise taxes and government spending. If the Republicans win, they'll keep the tax cuts but not cut the cost of government. Either way the money printing presses will be working shifts overtime. The time to start ringing the fire bell was last year..... it may be too late now -- but oil the axles on those fire wagons folks and start asking questions......