denny Johnson

The Journal Gets Down on Goldman

Chicago style politics, now in Washington......after bankrupting the State of Illinois. Elected officials choose their supporters to receive $. Time to ask Obama/Pelosi to resign.

Global Food Crisis Worsening

America needs to end the policy of paying farmers "not to plant" ! This is a world crisis and the US should not ignore its responsibility to provide as much grain as possible. It also will help our economic recovery, by reducing our Federal costs of "land banking" and increase our exports, bringing in cash. Or at least...... stop giving the UN cash and have the US buy American farmer grain to give to the UN instead. Keeping the money at home.


On May 31 12:35 PM Mad Hedge Fund Trader wrote:

> I agree totally. I don’t normally rely on National Geographic magazine
> for investment advice, but in the June issue the screaming long term
> bull case for the soft commodities is there in all its glory. During
> the sixties, new dwarf varieties, irrigation, fertilizer, and heavy
> duty pesticides tripled crop yields, unleashing a green revolution.
> But guess what? The world population has doubled from 3.5 to 7 billion
> since then, eating up surpluses, and is expected to rise to 9 billion
> by 2050. Now we are running out of water in key areas like the American
> West and Northern India, droughts are hitting Africa and China, soil
> is exhausted, and global warming is shriveling yields. Water supplies
> are so polluted with toxic pesticide residues that rural cancer rates
> are soaring. Food reserves are now at 20 year lows. Rising emerging
> market standards of living are consuming more and better food, with
> Chinese pork production rising 45% from 1993 to 2005. The problem
> is that meat is an incredibly inefficient calorie transmission mechanism,
> creating demand for five times more grain than just eating the grain
> alone. I won’t even mention the strain the politically inspired ethanol
> and biofuel programs have placed on the system. It is possible that
> genetic engineering, sustainable farming, and smart irrigation could
> lead to a second green revolution, but the burden is on scientists
> to deliver. The net net of all of this is that food prices are going
> up, a lot. Entertain core long positions in corn, wheat, and soybeans
> on the next dip, as well as the second derivative plays like Agrium
> (seekingalpha.com/symbo...), Potash (seekingalpha.com/symbo...)
> and Monsanto (seekingalpha.com/symbo...). You might also
> look at DB Commodities Tracking Index Fund (seekingalpha.com/symbo...).
> These will all surpass last year’s stratospheric highs at some point.