Good piece by Christopher Laird on the ongoing inflation/deflation battle.
I found this bit particularly interesting:
There is a report that 25% of the world wheat crop is at serious risk of a new virulent wheat rust that chokes the wheat before it comes to head. (Mid-East to Asia). The US has its own concerns over a wheat rust spreading through the Mid West. So, what are the chances of a record grain harvest in 08?
Just to give an idea of the concern about food, China just spent a $400 a ton premium on fertilizer that used to cost $170 a ton Jan 08. It was a huge order. Reason? They are afraid that if they don’t have great harvests this year, tens of millions may starve in 09. It is a grim situation. Other poor countries in Africa, Asia, South America, are also very concerned about grain shortages.