Replies to post #133 on AS IRON SHARPENS IRON

[eelfland]

Here's a good example of what happens to a meat producer when the price of feed goes up more than the price of meat.

http://stockcharts.com/h-sc/ui?s=PPC&p=D&yr=3&mn=0&dy=0&id=p66466508818

If you want to catch it on the way back up, you'll just have to follow the relative prices of what this type of company has to buy versus what it can get for what it sells. At some point in the future meat producers will become profitable again, but fundamentals have to change. For one thing, we're going to have to quit burning food in our cars. I always did think that was one very stupid idea, converting perfectly good food into a gasoline substitute. Turns out I called that one right. For one thing, it takes more energy to produce ethanol from corn than you get out of it. Stupid waste of food and tax dollars. Shameful, the way science so often takes a back seat to political correctness.