Diary: Rising Food Prices

What they do not tell you about the rising prices at the grocery store or Wal-Mart is that much of the reason these items are rising in cost is because the dollar is dropping in value. Now why would the drop in value of the dollar cause a rise in food prices. Most of the food you buy at Safeway or Wal-mart or some other big grocery store is brought in from thousands of miles away. Almost none of this food is local. Now with the drop in value of the dollar, the price of oil goes up, and the price of any imported good goes up. As the dollar drops, anything dependent on oil will go up. Oil is required to fertilize the food and it is required to keep bugs off of the food. Further it is required in the transportation of food. Unless you buy locally grown organic foods ironically your food price will continue to go up.

Now as our fragile economy continues to decline, the dollar will continue to be in free fall. You can expect all those lovely imported goods to go up in price. China can keep their currency in time with the dollar, but it cannot keep it's goods low enough to off set the price of oil, which is required to transport all those cheap items from China. Remember all those cheap items you stand in line for at X-mas time? They are going up. What we have done is not sustainable. We cannot outsource our manufacturing completely without paying a huge toll.

Unless you buy locally manufactured goods, your price will go up. Be prepared. Start shopping locally now.