jimbomo

Rising Global Food Prices: Trading Guns for Butter

I view this as information as a harbinger of bad things to come for emerging economies. This quote is telling:

From a GDP perspective, the U.S. has it easy in weathering food inflation. Food is only 7% of overall economic consumption. But in Asian economies like China, India and Vietnam, food costs account for anywhere between 30­‒50% of overall consumption. Every uptick in food prices has a vastly more significant effect on local economies than here at home.

Added to this is the upsurge of energy costs that will also be a drag on poorer economies.

So, the investment possibilities are - short equities in emerging economies.
EOM