Comments on: The window of opportunity on scarcity issues starts to close (updated x3) http://www.globaldashboard.org/2009/11/11/oil-food-price-crisis/ Global risks and how to respond to them, edited by Alex Evans and David Steven Sat, 11 Feb 2012 13:49:12 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: finance_today http://www.globaldashboard.org/2009/11/11/oil-food-price-crisis/comment-page-1/#comment-118152 finance_today Sat, 10 Sep 2011 09:36:10 +0000 http://www.globaldashboard.org/?p=12123#comment-118152 What's even more troubling than the increase in food price is the fact that the food quality is on a descending curve, too: <a href="http://www.financialcrisistoday.org/forum/Business-Finance/have-some-food-companies-reduced-quality-over-the-years-to-save-money-315069.htm.." rel="nofollow">http://www.financialcrisistoday.org/forum/Busines...</a>. It seems that the companies decide to put less and less qualitative ingredients in their food, to keep up with the ascending prices and they do it on a regular basis. The biggest change in items like pudding is that they've all switched from real sugar to high fructose corn syrup. The products don't taste the same and don't obviously have the same nutritional value. What's even more troubling than the increase in food price is the fact that the food quality is on a descending curve, too: http://www.financialcrisistoday.org/forum/Busines…. It seems that the companies decide to put less and less qualitative ingredients in their food, to keep up with the ascending prices and they do it on a regular basis. The biggest change in items like pudding is that they've all switched from real sugar to high fructose corn syrup. The products don't taste the same and don't obviously have the same nutritional value.

]]> By: random bloke back for a bit more http://www.globaldashboard.org/2009/11/11/oil-food-price-crisis/comment-page-1/#comment-16935 random bloke back for a bit more Thu, 12 Nov 2009 12:42:44 +0000 http://www.globaldashboard.org/?p=12123#comment-16935 Come on Alex - you can do better than Goldman's!! We'll have to agree to disagree on that one!! Nice to see the great Lord has been reincarnated tho. On a totally unrelated note I hope you saw the Jim O'Niel interview in the FT, putting the "eh by gum, in't China incredible" aside, I got the distinct woft of Goldman's admitting that the N11 doesn't amount to a bag of manure. Always the problem with excel wizards, they never understand political risk ... Garbage in, garbage out. Still, the great Lord is no doubt impressed... Come on Alex – you can do better than Goldman’s!! We’ll have to agree to disagree on that one!! Nice to see the great Lord has been reincarnated tho.

On a totally unrelated note I hope you saw the Jim O’Niel interview in the FT, putting the “eh by gum, in’t China incredible” aside, I got the distinct woft of Goldman’s admitting that the N11 doesn’t amount to a bag of manure. Always the problem with excel wizards, they never understand political risk … Garbage in, garbage out.

Still, the great Lord is no doubt impressed…

]]> By: Alex Evans http://www.globaldashboard.org/2009/11/11/oil-food-price-crisis/comment-page-1/#comment-16934 Alex Evans Thu, 12 Nov 2009 12:28:02 +0000 http://www.globaldashboard.org/?p=12123#comment-16934 No need to take my word for it on the arbitrage point: here's Goldman Sach's head of commodities research (at http://is.gd/4TjIp): "But more importantly, if you can turn agriculture products into energy, then an arbritrage relationship must exist between the two, creating what we like to call ”bushel-to-barrel” convergence. Therefore, if you believe in the sustainability of higher long-term oil prices as we do, then you must also believe in the sustainability of higher long-term agriculture prices." And since GS are now officially the Lord's vicar on earth (http://is.gd/4TjJF), who am I to disagree? ;-) No need to take my word for it on the arbitrage point: here’s Goldman Sach’s head of commodities research (at http://is.gd/4TjIp):

“But more importantly, if you can turn agriculture products into energy, then an arbritrage relationship must exist between the two, creating what we like to call ”bushel-to-barrel” convergence. Therefore, if you believe in the sustainability of higher long-term oil prices as we do, then you must also believe in the sustainability of higher long-term agriculture prices.”

And since GS are now officially the Lord’s vicar on earth (http://is.gd/4TjJF), who am I to disagree? ;-)

]]> By: random bloke http://www.globaldashboard.org/2009/11/11/oil-food-price-crisis/comment-page-1/#comment-16928 random bloke Wed, 11 Nov 2009 19:17:28 +0000 http://www.globaldashboard.org/?p=12123#comment-16928 This is not fundamentals Alex - merely asset rotation in the oil markets thus far. Give it a while longer yet before you get too worried. P.S. you should also stop seeing the relationship between fuel and food as arbitrage. It's only opportunity cost.... Cheers This is not fundamentals Alex – merely asset rotation in the oil markets thus far. Give it a while longer yet before you get too worried. P.S. you should also stop seeing the relationship between fuel and food as arbitrage. It’s only opportunity cost….

Cheers

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