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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: sea_biscuit who wrote (94315)5/16/2008 9:52:57 AM
From: dybdahl  Read Replies (2) of 110194
 
Food production and delivery has been optimized for many years in ways that reduce storage etc. This means that a small rise in consumption will produce shortage in many places.

However, the world has enough food - the problem is not the amount, but the price. When the price is adjusted, there will be no shortage, it will just be too expensive.

In order to get the price down, production must rise or consumption must be reduced. There is still room for production improvements, and consumption reduction can happen in several ways.

I fully agree with you, that it's not a bubble - but it may be temporary.
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