Quote:
Originally Posted by pwd72s
Cindy does the shopping...tho gas is down, she claims food prices are still high....
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The meteoric rise in food prices can be traced to the increase in petroleum prices, as well as the transfer of corn from food input to fuel source. Without going political, most are waking up to the fact that ethanol was nothing more than smoke and mirrors.
As the ethanol crazy dies down and the decline in fuel prices ripples through the 'food chain', I expect a downturn in food prices, trailing behind the overall drop in consumer prices already happening.
What concerns me more than all this is volatility - we're already getting desensitized to massive swings in commodity pricing and stock market positions. The 'real' economy won't, though - look at the news coming out this week. Bad juju.