The U.S. has experienced some record droughts for the past several years, and now that the summer has begun, everyone is speculating on this year’s crop forecasts. The Midwest has been struck by severe flooding and rainfall levels that are far above average, complicating startups of this year’s crops. Another dry summer could push the prices up even higher, with an ever-growing demand that always exceeds the available supplies.
One of the problems in the overall food industry in the U.S. is not brought on by weather patterns and rainfall shortages. The problem is inflation, the rise in the prices due to higher demand, lower supply, and less purchasing power with the fiat dollar; that problem is coupled with (and followed by) deflation, where the grocery industry is forced to lower prices to capture a declining consumer base, but to its own cost.
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