International food prices have risen to their highest level in two years, fueled in part by a drought in Russia that lifted the cost of wheat, a U.N. agency said Wednesday.
Rising global food prices are byproduct of currency devaluation across the globe. Yet, the headline discussion remains fixed on the message of deflation.
Spot Commodity Prices: CRB Spot Index (1947 - Present);
16-Raw Industrial Spot Price (1935-1947);
Great Britain Wholesale Price of All Commodities (1885-1935)
Foodstuffs, which have underperformed the spot index since 2009, has begun to outperform again. That last time this happened gold accelerated from 2007 to 2008.
Gold and CRBFood to CRBSpot Ratio:
The talk of deflation is nothing more than misdirection away from the message conveyed by the secular trends.
Source: hosted.ap.org
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