Thank you for such an informative and honest blog.
I would like to ask you about the food situation during the economic collapse in Argentina in relation to what's to the situation here in the US. Due to the subpar farming seasons (in the US) this past year, there have been produce shortages to an extent in which many are saying that a major food shortage is coming. Prices obviously have went up.
However, some recent economic forecast articles I've come across have stated that there will be no food shortage, people just won't be able to afford it. I think it will be a combination of both.
What can we expect?
Hi Pers, thanks for your email.
That’s correct, Argentina produces food for 300.000.000 people (Maybe half of that these days, after the Farmers Crisis), and we have a population of 44.000.000. Why do 10 to 20 kids die of starvation each day then? As you well say, people can’t afford food, or they can only afford food of poor nutrition quality.
People need to understand that for every complex problem, there is an answer that is clear, simple... and wrong.
Go to any of these countries where there’s children dropping dead of starvation like flies, there’s always an elite that lives a good fat life. There’s restaurants where you can drop by and eat nicely… and cheap too!
Pick you favorite dirt poor African country and when you visit the capital district you’ll find a different reality. The dumb tourist may ask himself, “Dear God, why do people starve to death in this wonderful place when you can eat a fancy dinner in a restaurant for 5 dollars? I wish New York had joints like these!”
Some people are extremely poor. Argentina is of course not the worst example, but you still have to keep in mind that 50% o the population is still poor and 20% is BELOW the poverty line, meaning they cant afford to purchase the necessary calories do develop the daily activities. These are the ones that are seen begging on the fancy avenues, eating out of the trash of the McDonalds in the Capital and sububs, and yes, slowly dieing in provinces like Tucuman, Santiago del Estero or Salta.
There are cases in history where simply no food was to be found, but in most cases your other assumption is correct: People just cant afford the food. That’s the problem.
This is why having a food stock of 6-12 months is so important. It gives you enough time to evaluate your situation and take action instead of desperately trying to find food to feed your children.
Your food stock covers that primal, immediate need.
After having that basic need covered, your finances are of mayor importance as well. Finances and smart financial strategies and investments will ensure you have more resources and yes food on the table as well.
My grandparents where farmers in Spain, they lives there as farmers for generations, yet their main concern after escaping the Spanish Civil War and coming to Argentina wasn't finding a lot of land to farm: Their priority was starting their own business. That bakery store was a big success and covered all their needs 10x better than any farm would.
The modern equivalent of giving a man a fishing rod and teaching him how to fish in comparison to just giving him a basket full of fish.
While some people starved, other poor people that started out just as bad ended up starting their transportation companies, or even had the idea of buying a warehouse and providing a place to rent and start a market, commonly known here as “Ferias”.
So you see, you have people that starve, and you had poor people with no education that just using their heads, they made a fortune, having two of the latest Mercedes Benz parked on the front of their market/warehose (one of each color, exact same model that costs about 40.000 Euros each)
Your savings come into play as well. You precious metals can buy lots of food… today and 50 years from now! Probably even more than what they buy today. Gold and sliver has unlimited shelf life and can be used to compensate for any mistakes you may have made when planning your food stock.
Regarding your question, I think that there will be food. Its just going to be more expensive as you say, just like everything else, in the end it means that ex middle class people become poor and have lower standards of living.
I sincerely don’t think it will be as bad as it got here. We almost lost our middle class, at least half of them became poor. No, they are not starving, but they ARE poor and not USA poor with fancy cars and wide screen TVs. I’m talking about struggling to reach the end of the month and carefully planning what food they can or cannot afford to put on the table.
Food is still cheap in USA and Europe, do yourself a favor and write down exactly how much of each your family needs for a week, then put aside a 6-12 month supply just in case. You’ll end up eating it anyway, just remember the two most important Rs of food stockpiling: Rotate and Restock.
Do that, and you wont end up throwing a single cent away (you always eat food no matter what) and you’ll have a supply in case something bad occurs.