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Honored Advisor

Re: In addition

Pal: your whole premise is fundamentally flawed in more than one way.

 

 First it assumes the world has excess cap.

 

Second who's paying for this sequestered capacity?

 

Third and probably most important, you are dealing with a highly perishable commodity. You should check out how it works in India. They try to do it. Most rots.

 

Fourth you are trying to say we a nation with 350ish million and the # one exporter of grains in the world will run out. You should find something else to worry about.

 

If you are really concerned go to this or any one of a similar co and stalk up, convince all your relatives, friends, and neighbors to do the same thing in the course of the next year.

 

 http://beprepared.com/quickshoplist.asp_Q_c_E_950_A_name_E_Freeze%20Dried%20Foods%20In%20#10 Cans

 

This stuff is good, is ready in minutes, is already processed, lasts for up to 30 years if kept cool and dry.

 

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Contributor

Re: It's time for a global grain reserve

Well, certainly your proposal makes my brain hurt. However, I believe it is a socialistic solution that empowers government  control leading to programs and graft. Producers with information can adjust to weather/ markets, supply/ demand. No one can forsee what government may decide.   If CME is the problem it needs to be cleaned,legality requires regualtory enforcement, but gov't control definitely makes food a weapon. One bushel of surplus can tank a market, making it unprofitable for disadvantaged environments to produce enough for their populace.

People came to Turtle Island b/c privilege and entitlement made them serfs. 1984 and Animal Farm come to mind.

But, either way, there are many problems, TPTB will do as they please, will give the noggin a rest. I prefer open markets and little intervention.

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Highlighted
Senior Advisor

Re: In addition

I think you're misinterpreting my points.

 

Globally we may or may not have excess capacity in any given year. Only in years when there is additional inventories built is it reasonable to sequester grain from the market for a reserve. Rather than having a significant drop in proces we would build that reserve inventory. because we have waited it may in fact be impossible to build large reserves easily. If that is the case we have alot of globbal social chaos and a lot of market chaos ahead. I think there is common agreement that beyond a certain point chaos and volatility do damage to the economic order.

 

Second, a reserve has storage costs - period - one way or another. If their is excess stroage capacity on the farm then pay the farmer if he decides to participate in a year when prices are likely to be down. His decision. Or pay commercials. It doesn't really matter one way or another. It's a proven concept. And of course the government pays the storage. When the commodity is released to the market during periods of shortage it's likely that storage anmount, or a large proportion would be recaptured, if not more. But an additional suppy would be there for those years that are short.

 

Wheat is not a highly perishable commodity with a minimum of care. In my area it's as easy as turning on fans twice in one fall and it cand sit undisturbed in perfect shape for at least 5 years. India and other countries have problems because they store in bags in the open air in an area tha has monsoons, etc. They are now updating their facilities. Most exporting countries have better storage facilities.

 

I'm not saying WE will run out. Never have said that. We are an exporting country. On the other hand, in 2007-8 there was a scramble to find marketable supplies of some classes of wheat. That also affected our internal prices and markets - near chaos at times with physical prices out pacing futures.

 

Effective reserves have to be in quantity and organized. The 'do it yourself if your concerned' is strictly an insulting response - and meant to be that. OK, we can count you out. Not a problem.

 

Finally, foreign markets, where the need is likely to be greatest, most easily and efficiently handles bulk commodities in the form they are used to. Something processed is strictly second choice and harder to deal with in a system that isn't geared for it.

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Senior Advisor

Re: It's time for a global grain reserve

Feel the same way about the Strategic Petroleum Reserve? I mean really, not in any ideological way.

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Honored Advisor

Re: It's time for a global grain reserve

On the other hand, in 2007-8 there was a scramble to find marketable supplies of some classes of wheat.

 

That year there was not ONE sandwich unmade because of lack of bread.

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Highlighted
Senior Advisor

Re: It's time for a global grain reserve

 You don't like the idea of a reserve? Fine. But you don't need to wave your ignorance like a flag. Nuff said. 

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Honored Advisor

Re: It's time for a global grain reserve

You miss the WHOLE point....WE HAVE A RESERVE. The biggest best in history coupled with the best production system the world has ever known.

 

Through out history any time there is central control there is SEVERE shortages and even starvation. Today's classic example is North Korea. 20+ years ago your type of system took down the USSR. .

 

It is your ignorance and failing to know the consequences of what you think is a good idea, that has acually been a failure most every time it was tried. You FAIL to understand the unintended consequences.

 

You have elluded to the fact that WE should have reserves for the World...that is utter foolishness.

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Highlighted
Veteran Advisor

Re: It's time for a global grain reserve

I thought the strategic petroleum reserve was there, to be tapped into, in case of a national crisis, not for market manipulation.

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Highlighted
Senior Advisor

Re: It's time for a global grain reserve

Pharaoh told Joseph his dreams, and Joseph told him that the two dreams were one, a prediction of what God was about to do. (Genesis 41:17–25.) The seven good cattle and the seven good ears symbolized seven years of plenty, and the seven lean cattle and the seven empty ears symbolized seven years of famine that would consume thereafter. (Genesis 41:26–31.) The dream was doubled because God had established the thing and would shortly bring it to pass. (Genesis 41:32.) Joseph recommended that Pharaoh set over Egypt a man discreet and wise, that he appoint overseers to take up a fifth of the harvests during the years of plenty, and that he store that food for the years of famine. (Genesis 41:33–36.) Pharaoh told Joseph that inasmuch as God had shown him all this, there was none so discreet and wise as Joseph, and thus Pharaoh set Joseph over all the land of Egypt.

 

Joseph was 30 years old when he stood before Pharaoh, and in the seven years of plenty he gathered up grain as plentiful as the sand of the sea. (Genesis 41:46–49.) Joseph and Asenath had two sons, the first of whom Joseph called Manasseh, for God had made him forget all his toil and all his father's house, and the second of whom he called Ephraim, for God had made him fruitful in the land of his affliction. (Genesis 41:50–52.) The seven years of plenty ended and famine struck, and when Egypt was famished, Joseph opened the storehouses, and sold food to the Egyptians. (Genesis 41:53–56.) People from all countries came to Egypt to buy grain, because the famine struck all the earth. (Genesis 41:57.)

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Veteran Contributor

Re: It's time for a global grain reserve

I would not oppose a grain reserve if the chemical companies, the seed companies, the fertilizer companies and the equipment manufacturers all had large reserves to protect the farmer from price spikes. I mean in all fairness if your your going to keep the price of grain limited then the costs involved in farming should be limited from price spikes.
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