Food Stamp Deflation

Here's an aspect of rising food prices that we probably were not thinking about.

NYT: Food Stamps Buy Less; Families Are Hit Hard

The sharp rise in food prices is being felt acutely by poor families on food stamps...

In the past year, the cost of food for what the government considers a minimum nutritional diet has risen 7.2 percent nationwide. It is on track to become the largest increase since 1989...The prices of certain staples have risen even more. The cost of eggs, for example, has increased nearly 20 percent, and the price of milk and other dairy products has risen 10 percent.

But food stamp allocations, intended to cover only minimum needs, have not changed since last fall and will not rise again until October, when an increase linked to inflation will take effect.

I've said this again and again but families that live on the financial margins are going to be incredibly pressed with the steep rise in food and fuel.

We know that the upcoming winter is going to be very difficult for some to stay warm with rising fuel costs.

We want to move from our present house which is heated with a gas furnace. If we are unable to get out by the winter, we are going to get a wood pellet stove.

It has been suggested that cities and townships need to open up 'warm spaces', a gym or community room where people can stay warm. Think about it, if people are having a hard time now how are they going to get by in the winter.

Also, this gets back to the issue of inner city violence. I believe violence is going to rise sharply. People are angry along with being overwhelmed by incredibly bad archetypes. Please watch yourself walking around on the streets. Keep a very vigilant eye and have a scenario for getting away in mind. Anger, deeper impoverishment, and an existing propensity towards violence are a very bad mix.

Finally, what we are also going to witness is an increase in the number of people on the margins. The inflationary food and fuel prices will push more people into the pressure of being impoverished.

The Saudis did announce that they were boosting oil production. This might translate into slightly lower gas prices. Regardless, we are in a tough web.