The Surge Is Working...no not the war surge, it's the food prices stupid!

In case you haven't noticed food prices are rising faster than a thermometer in mid-summer.  Of course there's no sense in saying we warned you about these things in the past...it's too late folks, the warnings are useless!  What's that you say?  "Wake up America !"  Give me a break!  You fell asleep at the polls back in 2008 and never woke up...although it appears somebody gave you a little poke on November 2nd, 2010.  No, there's no escaping the consequences of 2006 and 2008 and now you will have to suffer through it...
~ Storm'n Norm'n

The following from Business Insider

Here's The Massive Commodities Surge About To Send Food Prices Sky High
The culprits: The U.S. dollar index is falling due to Federal Reserve "money printing" through QE2.

Image: Societe Generale

QE2 had a massive immediate impact on grain prices.

 

From Societe Generale:

However, when the US Federal Reserve announced the size of its second quantitative easing scheme - nicknamed QE2 - last week, the grain complex moved more decidedly upwards. On 4 November, the day after the Fed announcement, corn rose by 1.5% and closed at USc590/bu, while wheat gained 3.4% and soybean 3%.

But what's more important, according to SocGen, is that the threat of future QE is firmly in place. This is increasing expectations for future demand, but also sending the signal that the dollar is going to be in long-term decline. That dollar decline makes makes importing grain in foreign currencies cheaper, and drives up its value.

In the long term, this could discourage domestic production, if U.S. producers undercut local prices.