"If you read any economic, financial, or political analysis... that doesn't mention the food shortage... throw it in the trash, as it is worthless."
In short, the looming crisis I'm writing you about today is "the Crisis"... the one that makes all doomsday scenarios come true.The government bailouts and central bank interventions, which have held the financial world together during the past two years, will be powerless... there will be no playing nice with other countries... when this crisis hits, it will be about the raw act of survival.
"The specter of food shortages is casting a shadow across the globe, causing riots in Africa, consumer protests in Europe and panic in food-importing countries."
"Fears grow over global food supply."
"Riots spread as global food shortage worsens."
"We are sleep-walking into a crisis."
Even if we have a good year, we are not going to have the inventories we've seen before. I really do think the time of cheap food prices is over... Everything is set to the point where supply equals demand right now. But if you pull one thing out of it, or if you disrupt the equation in some little way or tweak it, I think, with inventories as tight as they are, it will really have an impact on prices. A drought, a flood, anything.
Food prices hit a record level last month, according to United Nations statistics, and are forecast to grow by more than 30 per cent this year. In a worst-case situation of critical shortages sketched by Citigroup Inc. analysts, prices could skyrocket by as much as 75 per cent.
This [food crisis] has been in the works for a long time. It was there for all to see. The ratio of arable land to people has been falling for decades. Gains in crop yields have slowed. Population has expanded and income levels have grown. Diets have shifted. More people are eating more meat, which is much more grain-intensive to produce.
- Arable land
- Decreasing crop yields
- Growing population
- Changing diets in emerging markets
- Rising fuel costs
- Bio-fuel demand...
So, if you look at everything we've talked about today... and then you add in trillions of dollars, yen, euros and every other currency on the planet... to the one place where a very real supply and demand problem already exists... well, you get the prefect food storm.
And it's already happening...
Here's a chart of beef prices over the last five years... UP 123%:
Of course some people simply don't believe all this is actually going to happen... or that it won't actually be that big of a deal...
I hope "they" are right.
But what I can't shake is how this hope vs. the facts reminds me of what is known in some circles as...
This is a new, unexpected event that is outside the context of a group of people's understanding. In other words, it's something they never even allowed themselves to consider... because "it" has never been an issue.
Right now, America is a country that is made up of several generations that have never really known food scarcity. Very few people in America have ever been truly hungry. And even those that have experienced hunger did so because of poverty, not because of lack of food supplies.
For the most part, the years of the dust bowl and Steinbeck's Grapes of Wrath have been largely forgotten.
So, because a food shortage has never been experienced, it's outside of the context of possibility for us.
However, just because something is outside our context, it does not mean it can't happen. It only means we are likely to be unprepared for it.
An example would be the Native Americans.
They were living here with no idea other nations existed around the world. Then, one day they see ships approaching... but again, they had no concept of "a ship," so there was no way to quantify the threat.
Of course, we all know how that ended.
So what do you do?
Well, you do what you can, starting with...
One is to protect yourself and those you care about most.
Two is to figure out the best way to preserve the assets you have already accumulated.
Three -- and this should only be considered once you have taken action to both protect and preserve what you already have -- you should be ready to profit from the situation.
Now, I know profiting from disaster or crisis may sound cold at first. But my job as researcher and analyst at Taipan is to find ways to help you both protect and to grow your money. And in many cases, crisis leads to opportunity.
However, it bears repeating -- you must protect and preserve first... then, and only then, should you look for ways to profit.
So let's look at this three-part crisis plan...
Don't deny the facts right in front of you just because it has never happened here before.
Let's face it, there's no need to have a big fat retirement account if you and your family can't find food.
Fortunately, there are some pretty simple and straightforward ideas that could save you a lot of heartache and trouble when this food crisis hits.
I'd like to share some of those ideas in a report we've put together here at Taipan.
However, please understand, we are not survival experts -- our specialty is financial reporting, but we believe our research staff covered many of the most important things you need to know in this report.
The title of the report is: "Crisis Protection 101: Protecting Yourself During the Coming Food Crisis."
After all, most of us in the U.S. have income that is denominated in dollars, our savings are in dollars, and, most importantly, our retirement and investment funds are in dollars.
If U.S. dollars become worth less (not necessarily worthless), it means that our purchasing power will decline -- we will be able to buy less "stuff" with the same amount of dollars.
But most people don't realize that there is a relatively easy solution.
Instead of owning dollars or traditional blue chip U.S. companies (which currently hold record amounts of U.S. dollars on their balance sheets) you can instead choose to own "stuff" -- the very same "stuff" that will become harder to purchase as the dollar becomes less valuable or should a major crisis break out.
The process is easier than it sounds.
My expectation is that at some point in the next several quarters, we will see a sharp decrease in the value of U.S. dollars -- and we at Taipan all agree we are already beginning to see the early stages of this move.
That's why it's a good idea to own financial instruments that are tied to the price of hard assets -- things that you can touch, feel, eat or use.
This will allow you to preserve the value of the assets you have worked so hard to attain.
While there are many ways to gain this kind of exposure in your investment or retirement account, the easiest approach is to own "hard-asset stocks" that are tied to particular commodities.
A few well selected hard-asset stocks should offer you tremendous pressure against inflation -- and help your investment account maintain a healthy value -- regardless of what the U.S. dollar does in the coming year or two... and regardless of how this crisis plays out...
Holding an assortment of hard-asset stocks is a great way to preserve the purchasing power of your long-term investment portfolio.
I've prepared a special report on what I believe are the three top hard-asset stocks for preserving your wealth as we move through the coming crisis. It's called "Crisis Preservation: Using the Physical Power of 'Hard Asset Stocks' to Preserve What's Yours."
As you've seen, one of the biggest problems is the amount of farmland available.
Fortunately for us as investors, technology can get more food out or every acre of arable land... and, in some cases, turn otherwise unusable land into arable land.
I think this headline from an article may say it better than I ever could:
If you thought farming was just overalls and plaid shirts, then you might be surprised.
One of the ways companies are combating the food crisis is through technology. Farming is searching for hi-tech solutions -- solutions that will spread throughout this $134 billion industry.
And let's face it, wherever $134 billion is being thrown around, you can rest assured there are some serious opportunities for investors... because technology may be the only way left to save the planet from food shortages like those mentioned above.
That's why I believe you should consider...
Three Hi-Tech Farming Solutions...
Ten years from now, it may be farmers who will drive the Lamborghinis and the stock brokers will drive tractors or taxis at best.Even in this day of multibillion-dollar bailouts and stimulus packages, $134 billion is still a lot of money to be spread around.
Now, you could take the obvious route and buy a great tech company like Intel (INTC:NASDAQ), which is developing the atom processor that will drive many of the technologies behind the hi-tech solutions. And if you did, you'd probably do pretty well.The thing is, I believe you could do better...
I have uncovered three companies that are actively using technology to increase crop yields, lower water usage and create more arable land.
That's why I've prepared a new report, called "Three Ways to Profit From the $134 Billion Hi-Tech Food Crisis Solution."
In the new report, I explain why I believe these three companies are in perfect position to provide solutions to the coming food crisis using technology.
It is my belief that technology may very well be the only way left to fix the problem. And if that is the case, then these companies and their investors could be rewarded.
However, let me remind you: Even if this technology stops the food crisis, all the other factors of population growth -- changing diets, bio-fuels, etc. -- will continue to allow for profits from this sector.
So, even if I am wrong about how bad the crisis gets, you will already be positioned for profit.
Well... that's the three-part food-crisis plan -- protect, preserve... then profit.
The next question is, how do you get started implementing this plan?
That's where Taipan Publishing Group's 22 years of experience comes into play...
As I mentioned at the beginning of this letter, each and every month we guide nearly 250,000 individuals through the markets.
We've helped people make money, and we've helped them protect their money.
People like Betty B., of Peoria, Ill., who recently told us:
I live on my Social Security... so wins like this are very significant to grow my little investment pot... A BIG thanks.And Sally F. of Tulsa, Okl., who said:
Thanks for the BBI play. We made $1,500 in practically no time! This trade alone paid for my subscriptions.Then there's Sheri F., from San Antonio, Tex. who said:
I followed your recommendation. I made a $6,315 profit after commissions.As good as these letters and others like them make us feel, there is a real uneasiness in the office these days.
You see, we sincerely believe that folks who do not take the time to prepare for this coming crisis could lose everything.
That's why we've written this letter, and it's why we've prepared this Three-Part Crisis Plan.
However, this plan alone will only get you so far if you don't continue to monitor the situation very carefully.
That's why we'd like to give you the following three reports absolutely free when you give ourSafe Haven Investor research service a try.
The three reports you'll receive are...
- Protect -- Crisis Protection 101: Protecting Yourself During the Coming Food Crisis.
- Preserve -- Crisis Preservation: Using the Physical Power of "Hard Asset Stocks" to Preserve What's Yours.
- Profit -- Three Ways to Profit From the $134 Billion Hi-Tech Food Crisis Solution!!!