2 fer, part deux

Hi Everyone,

For only the second time, I am giving you all 2 quickies today. Every once in a while I find a quote that someone said and to me, makes so much sense that I have to share it.

#1) This is from William Graham Sumner, (1840-1910). "All history is only one long story to this effect: men have struggled for power over their fellow men in order that they might win the joys of the earth at the expense of others and might shift the burdens of life from their own shoulders upon those of others." This certainly seems true even today.

#2) In today's Sunday paper, there is an article in the Money section about the price of beef. The bottom line is that this country is facing the highest beef prices in 3 decades. This is true with both consumers and restaurant owners. Additionally, it doesn't matter which cut of beef you want, London Broil, T-Bone, Prime Rib, Rib Eye, Hamburger meat, etc., etc. all the prices have risen.

The news media has been talking about a beef shortage since last year when a terrible drought forced many cattle ranchers to sell off their herds prematurely, before they would be normally ready. There were no grasslands and the cost of hay was too expensive to feed their herds. So I figured that, that was the reason for the sharp increases in beef prices we are seeing now. But, oh boy was I wrong! Another part of this equation and is just as equally important, is the growing export demand from countries such as China and Japan. Now that part of the equation was never mentioned in other news outlets. Seems that there is quandary with our US owned cattle ranchers. Keep the price increases to a lesser amount by not selling so much overseas or continue selling overseas and keep the price increases to the max. With 25% price increases so far, how high will the price of beef go?

Unfortunately, as we have seen so many times before, when a food price increases, we never return to the price prior to the increases. A great example is the cost of Orange Juice. Some years ago, there were frosts in Florida, that heavily damaged the citrus crops. OJ prices immediately shot up and the price never returned to pre-frost prices. AND, in a recent study, Americans now drink 40% less OJ then they did 10 or 20 years ago and the price just keep rising. What happened to Economics 101, supply and demand?

So what does this all mean? We obviously can't control Mother Nature in regards to droughts and frosts etc. But the amount of beef sold overseas can and should be controlled, especially in the event of a severe drought like what is currently happening out west. Common sense is never on the front burner with these kind of issues, but greed is, which is unfortunate for all of us.

Til next week.

Peter