SHTF: Inflation Into Hyper-Inflation

While not too concerned about larger Government conspiracies I am concerned about Inflation leading into Hyper-Inflation and the good chance that this will all precipitate a economic collapse. This is much more likely to be the root cause of SHTF,...... barring any nuclear attack, super density cyber attack or flaming metorite strikes on the earth.

A total economic collapse could also be the cause of large government restrictions on the population and placing martial law into effect.

But we get closer and closer to runaway inflation with the fuel prices, and prices of foods and other commodities increasing daily, compounded by the reduction of earnings through higher taxation. On an every two week basis, my pay has been reduced $125. That's basically a $250 reduction in buying, saving, investing and ultimately prepping power each month.

Even the major news networks and Government are warning of higher food prices. While there is not a single cause for this, droughts, natural disasters, higher fuel prices and the devalued dollar are all combining to cause these higher food prices. The article below is from a USDA paid economist. I think he is vastly understating the potential of increased prices as other good sources tell us that, on average, food prices have went up 20% through 2012. Look at you own checkbook and grocery receipts and come to your own conclusion.

Higher Food Prices Coming,.....for sure. A USDA economist says Americans will be paying more at the grocery store in 2013.


"Inflation's going to pick up in 2013 over what we have seen in 2012. So we are looking ahead at a year of above normal food price inflation," says economist Ricky Volpe of USDA's Economic Research Service. Volpe says to expect food price inflation of 3% to 4% in 2013. He says the drought affecting two-thirds of the nation is partly to blame.

"The major impact of the drought in the Midwest, higher corn prices leads to higher feed prices, leads to higher animal prices, and higher prices for all animal products," Volpe says. He adds that consumers will see especially higher prices for beef. "We are still faced with historically low inventory for cattle in the U.S.," Volpe says. "So we still have supply that's low relative to demand. We have strong inflation; that's not going anywhere, and the drought is only exacerbating that." Egg and dairy prices will also be higher as drought drives up feed costs.

"So we have these higher feed prices translating into higher milk prices, which especially in the coming months and the first quarter of 2013 we expect to see this translate into a hike in overall dairy prices," Volpe says. "As the impacts of higher corn prices and higher feed prices translate throughout much of the year, we’re looking at egg prices to go up another 3% to 4% in 2013."

Fresh produce prices, which stayed low in 2012, are also expected to rise in 2013.