Tag Archive | "United Nations’ Food and Agriculture Organization"

Feast Now Famine – Multi Currency Investments


Shots like this of an Ecuador food market and multi currency investments grow in importance…beause the world’s cupboards are getting bare!

Ecuador-Food
Multi currency investments help investors adapt to change.  Multi currency investments are especially valuable now because change is here…big time.

Change brings distortions. Distortions create problems and problems create opportunity.

Messages about multi currency investments over the last two days have looked at a problem that had been forgotten for many years…having enough food.

US debt creates a falling US dollar.  This is why multi currency investments are important.  A falling dollar creates inflation. Yesterday’s message showed us how soon twenty dollar bill will not be enough to buy a gallon of milk, a dozen eggs and a small loaf of bread.

This is the tip of the iceberg.  Beyond the greenback’s demise there is a more serious underlying supply and demand fundamental…there simply is not enough food right now.

Investors need more than just multi currency investments.

This was not the global position in past decades. In the 1980s, the U.S. Department of Agriculture was saddled with mountains of surplus cheese, corn and other foods that it socked away in warehouses and even caves.

As recently as 2003, the USDA had to buy so much powdered milk to support dairy prices that beleaguered officials shipped some to U.S. ranchers for cattle feed.
The European Union farm program had lakes of excess wine and mountains of cheese and butter stored.

Yet a recent USA Today article says: “While the previous surpluses were costly and sharply criticized, much of the food found its way to the poor, here and abroad. Today, says USDA Undersecretary Mark Keenum, “Our cupboard is bare.

“U.S. government food surpluses have evaporated because, with record high prices, farmers are selling their crops on the open market, not handing them over to the government through traditional price-support programs that make up for deficiencies in market price.

“Worldwide, food prices have risen 45% in the past nine months, posing a crisis for millions, says the United Nations’ Food and Agriculture Organization.

“Because of the current economics of food, and changes in federal farm subsidy programs designed to make farmers rely more on the markets, large U.S. reserves may be gone for a long time.

“The upshot: USDA has almost no extra food to supplement the billions in cash payments it spends to combat hunger at home and in developing nations.”

This is a huge problem and hence grand opportunity.  The solution is not simply making more money with multi currency investments…to buy enough food either.   You cannot be rich, happy, successful and full when those around you are hungry.  Not only is this inhumane…hunger and thirst are motivations that will destroy law and order faster than any other!

Investors have to put their multi currency investments in businesses that will bring fundamental changes in the way the world produces food.

I noticed this recently when at the Parsons Feed Store buying laying mash for our hens.  The phone rang and the clerk seemed exasperated. “No we do not have any,” she almost shouted in the phone.  “Seed potatoes.” she said. “Everyone is calling for them and we have been out for weeks”.   I asked, “Was the supply short this year?”   “No,” she said. “We had two shipments. Everyone is just buying more.”

There is an opportunity somewhere here.  I haven’t figured out what it is, but know it is there.

Take, as another example, shares of Vestas Wind Systems. We follow these shares in our multi currency course and they have been a huge winner.  One reason behind the food shortage is that many governments incorrectly promoted food (such as corn) as a source of alternate energy.  This helped skew the food supply down faster than demographics would have done.

Those who change, adapt and invest in solutions to problems are those who will profit.  This is why we are examining seven multi currency shares including Vestas in our multi currency course.

Until next message, may food always be abundant for you.

Gary

Learn more about multi currency investing at our multi currency portfolio course.

This is also why we are adding sessions on nutrition at our upcoming intuition course.

Here are delegates at a previous course enjoying a nutrition lesson in our teaching kitchen at the farm.

Ecuador Shamans

I love gardening.  This may become a hobby that goes beyond handy.  Folks round here still know how to feed themselves without the big city.  So do Merri and me!

Here is a previous year’s sunflower crop.  This was always for the beauty of the flowers. Now I am thinking about nutritional value instead.

Sunflowers

This course will be conducted here in Ashe county where we live on a farm in part to be sure we have enough food by growing our own.  Hopefully part of our squash crop will be ready to serve. We aways have great pumpkins and squash.  Here is a previous crop.

Squash

Learn more about the food benefits of  Ecuador travel and living.

This is one reason we love Ecuador as our second home. There is such an abundance of good food.  The rich volcanic soil, full sun and lage rural economy means that almost everyone knows how to feed themselves. Here is a shot at Cotacachi market

Ecuador-food-stall

There is an article about this at Cotacachi Market – Quality living at cheap cost

See dates for our Ecuador tours and courses below:

Coastal Real Estate Tour

Ecuador’s fishing fleet  make eating fresh seafood easy, inexpensive and good!
Cotacachi food tas;

We bring fresh seafood to our hotel as well. Here I am with Merri and our chef Santiago at El Meson de las Flores after visiting Ibarra seafood market.

Gary Scott

Super Thinking + Spanish Course

Imbabura Real Estate Tour

Ecuador Shaman Tour

Ecuador Import Export Course

See discounts for attending more than one course.

Multi Currency Investing Beats Inflation.


Multi currency investing helps fight inflation.

As the US dollar falls, prices rise for everything….even local goods like food.

This is one reason Merri and I like to live on a farm with our chickens (eggs) and fresh natural fruit and vegetables. Here the blackberries are in bloom along our front yard fence.  We collect enough so that Merri can make a cobbler each week.

inflation-proof-blackberries

This is because there is a growing global demand for produce…wheat…corn.

Apples too but we have plenty growing here!

inflation-proof-apples

In short, people abroad are competing with stronger currencies for US food.

Yesterday’s message, Multi Currency Statistics, showed how this means that inflation is worse than statistics show.

According to US government inflation statistics, core prices described as “Core CPI” have risen just 2.3% in the last year.  Yet this figure does not include the price of food or energy.

In the last year, medical care costs have jumped 4.4%.  Food is up 5.1%.  Energy has risen 16.1%.   Over the past nine months, global food prices have soared 40 percent, while food reserves are at 30-year lows. These non included costs are what we spend most!

Plus according to a recent Reuters are article food prices are about to get much worse.

The article says:  “U.S. food prices will rise a stiff 9 percent a year through 2012, the largest increase since 1979 and the result of record-high crop prices,” the head of an economic consulting company said on Thursday.

“Retail prices on staple American foods rose by double-digit percentages in the last year, according to new data from the federal Bureau of Labor Statistics (BLS). The cost of milk rose 26 percent, and egg prices grew by 40 percent.

“Food inflation could pose a more serious threat to consumers in the US than soaring oil prices. This is because food accounts for 13 percent of spending for average households, compared to about 4 percent for gasoline.”

What does this mean?

Yesterday I went grocery shopping. A small loaf of good sourdough bread was $3.99.

At 9% per annum here is what it will cost each year.

2009   $4.34
2010   $4.74
2011   $5.12
2012   $5.58

A gallon of organic milk yesterday was $8.38.

2009   $9.13
2010   $9.95
2011  $10.85
2012  $11.82

We do not buy eggs thanks to our friendly chickens who live with us on our farm.

As boomers begin to retire on their social security, a loaf of bread and a gallon of milk will leave $2.60 change from a twenty dollar bill…not enough to buy a dozen eggs.

This is why we need multi currency investments to protect against the falling US dollar and fight inflation.

Yet the problem may be worse.

Milk rose 26 percent, and egg prices grew by 40 percent in the US this year.

Worldwide, food prices have risen 45% in the past nine months according to the United Nations’ Food and Agriculture Organization.

This creates enormous opportunity because it is a huge problem.  Problems  create opportunity.

Many people will become poorer because of this problem but wise investors will gain by investing in businesses that help solve these problems.

So what types of problems will a global food shortage create?

We can get a clue about one by looking at the Danish Pharmaceutical Portfolio we track in our Multi Currency Course.

Here is how it performed during the recent global equity set back..

Name                            Invested Amount           Recent Value
Genmab                             50,000.00                    39,903.33
NeuroSearch                      50,000.00                    36,475.09
Coloplast A/S B Aktie        50,000.00                    49,584.82
Novo Nordisk B                  50,000.00                    56,294.62
Alk-Abello B Aktie             50,000.00                    28,053.46
William Demant Hld.          50,000.00                    43,180.33

Why when this sector was slaughtered did Novo Nordisk shares rise 12% in three months?  One reason is this company is one of the largest producers of insulin in the world.  As food grows in cost more people eat less expensive carbohydrate food. Too many carbs in the diet encourage diabetes. Diabetes creates a demand for insulin.

This is another reason we like farm life with plenty of ponds and creeks filled with fish.

inflation-proof-fish

Some are pretty good size as well like this trout our daughter Eleanor fed four of us with!

inflation-proof-big-fish

Those who change, adapt and invest in solutions to problems are those who will profit.

This is why we are examining seven multi currency shares including Novo Nordisk

Until next message good multi currency investing

Gary

Learn more about multi currency investing at our multi currency portfolio course

Learn more about fighting inflation with Ecuador real estate and Ecuador living

See dates for our Ecuador tours and courses below:

Coastal Real Estate Tour

Super Thinking + Spanish Course

Imbabura Real Estate Tour

Ecuador Shaman Tour

Ecuador Import Export Course

See discounts for attending more than one course.