It was not long ago that the feds were concerned about a deflationary economy. But, oh my, how things have changed and so quickly. Freezes in Florida and a persistent drought in much of California’s edible crops growing area threaten to push up consumer prices on much of the fresh produce as well as processed foods. And, although oil has been consistantly hovering around $35/barrel, gas and diesel prices continue to rise.
However, these are not the worst threats to a switch to an inflationary economy. As the Obama administration and Congress continue to borrow trillions more to finance a very speculative economic bailout plan, the USA lenders – principally China, Saudia Arabia, Japan and other Mid-eastern countries are having second thoughts about opening their purses further. Some may even start cashing in the treasury bonds and notes they currently hold in exchange for more stable assets. In addition, the OPEC nations are under their own financial stress with the persistence of low oil prices.
So, what will the Obama administration do if more bailout money is needed but our foreign lenders are reluctant to pony up more cash? The only thing they can do and have been doing – print massive amounts of cash to cover obligations. If that happens, the dollar will plummet and become near worthless and hyper-inflation will raise its uggly head and ravage the nation and every American citizen.
So, if you have any place to grow a garden, this is the year to plan and plant a good one. Prepare to can and freeze your harvest. If you can afford it, stock up on sales when you can and take leadership in your community or church to start a community garden. If nothing happens you can donate the food to your local food shelf. But be prepared. Times, they are indeed a changing.