As some of you are aware, or should I say, that anyone who bothers to pay attention to my repetitive warnings must be aware, I believe very, very strongly that global grain production is going to virtually collapse over the coming years, and sooner rather than later. Prices will rise dramatically, to be followed by sufficient scarcity to result in famines and massive regional social and geopolitical chaos. Already, and it is just the start of Australia’s summer, wheat harvests look likely to fall at least by another 20%. This will be a global event, however, most prone will be nations in zones where the weather will restrict the viable growing seasons, however, all areas will be impacted by extremes in weather from drought and flooding to hail and quick, unexpected frosts.
The forecasts below do not yet reflect the reality of the dramatic climatic changes ahead from the Grand Solar Minimum and the dawn of what will be at least a new mini-ice age, but very possibly the true end to the Holocene interglacial warm period that gave birth to our modern civilization, at least this rounds.
World total grains production is forecast to hit a three-year low, falling short of demand and keeping global trade strong, the International Grains Council said following its 48th Council Session on Dec. 4 in Paris, France.
IGC members assessed the latest supply and demand outlook and market developments for grains, rice, and oilseeds as well as recent changes in national policies and administrative matters.
At a three-year low of 2.079 billion tonnes, world total grains (wheat and coarse grains) production was forecast to be down by 24 million tonnes year-on-year, as an improved maize harvest was seen being outweighed by reductions for other crops.
As grains production was again expected to be outstripped by demand, the IGC predicts a second consecutive season of world stock depletion.
Obviously, grain prices are heading far higher as I have been saying for the past year! And, given the fragility of the worlds economies and social fabric, the financial markets everywhere are at very grave risk. Going long the grains, shorting the obvious names impacted by rising food prices as discretionary income wanes, at the very least, will prove rewarding over the near term. Owning physical gold and silver will become a necessity for wealth preservation and for survival.
The risk in the electronic digital currencies has been underestimated as few seem to be discounting the very real risk of a CME or Solar Flare induced grid failure, one that could easily impact the entire wolds electronic infrastructure. Believe me, as we emerge from the nadir of our current solar cycle, cycle 25, and as the sun’s magnetic forces revive even very modestly, such an event is not a question of if, it is simply when, and when that when is getting dangerously close. Do you wish to have any wealth in digital anything when that occurs? The answer is patently obvious.