U.S. food prices will rise by at least 7 percent in 2009 because of higher feed costs for chickens, hogs and cattle, said a group of food-industry economists on Thursday.
Let's see.
Food-industry economists = National Association of Realtors™. The same people who couldn't see the commodities bubble are now going to give us advice on the future? Who hasn't seen this one before? Raise your hand.
"We've been losing money for more than a year," said Bill Roenigk, economist for the Chicken Council, who said producers intend to cut production by as much as 12 percent. "We need to recover these feed costs."
Yes, and the EE needs a diamond tiara. Doesn't mean it's going to happen now, does it?
The "cost-of-production" theory of value was soundly debunked even before the 20th century rolled around. We're now in the 21st in case you didn't notice.
Nobody cares what it cost you to produce. Only thing that matters is whether people will buy it or not, and what price will they pay.
During a teleconference, economists from the National Chicken Council and the consultancy Farm Econ said food inflation could be 7 percent-8 percent.
This is naïve extrapolation a.k.a. driving by looking in the rearview mirror.
In case you haven't noticed, the "hyperconsumer" economy turbo-charged on credit just got taken out behind the woodshed, and was shot like a diseased dog.
Simple straightforward prediction:
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