NASA’s Jet Propulsion Laboratory has sounded a stark warning over California’s sustained drought, publishing its latest findings where satellite surveys show a rapidly depleting groundwater supply.
And with California as the United States’ most valuable agricultural state, and thus key to America’s food supply (and much of the world’s as well) that could mean drastic consequences for food commodity prices and potential shortages.
A new Nature Climate Change piece, “The global groundwater crisis,” by James Famiglietti, a leading hydrologist at the NASA Jet Propulsion Laboratory, warns that “most of the major aquifers in the world’s arid and semi-arid zones, that is, in the dry parts of the world that rely most heavily on groundwater, are experiencing rapid rates of groundwater depletion.”
The groundwater at some of the world’s largest aquifers — in the U.S. High Plains, California’s Central Valley, China, India, and elsewhere — is being pumped out “at far greater rates than it can be naturally replenished.”
The most worrisome fact: “nearly all of these underlie the word’s great agricultural regions and are primarily responsible for their high productivity.”
NASA’s satellite map shows the loss of weight height just in the past three years:
According to NASA:
“California’s Sacramento and San Joaquin river basins have lost roughly 15 km3 of total water per year since 2011 — more water than all 38 million Californians use for domestic and municipal supplies annually — over half of which is due to groundwater pumping in the Central Valley.”
The result of these dangerous conditions is, not surprisingly, higher commodity prices – including food and water – creating higher profits for the companies that provide these services. Privatized water could drive prices even higher.
There are storm clouds gathering, so to speak, but they aren’t bringing rain.
In July, California’s state government economic report was already warning of losses in the billions for farmers feeling the weight of drought conditions, though it claimed the national food system would be little impacted.
However, time has made that claim ring hollow. In August, Bloomberg reported on the “global reverberations” occurring because of the drought in California:
“It’s a really big deal,” Sumner said. “Some crops simply grow better here than anyplace else, and our location gives us access to markets you don’t have elsewhere.”
[…]
The success of California agriculture was built in large part on advances in irrigation that allowed the state to expand beyond wheat, which flourishes in dry climates. It’s now the U.S.’s top dairy producer and grows half the country’s fruits, vegetables and nuts.
“Water has allowed us to grow more valuable crops,” Sumner said. “Now, we have fruits and vegetables and North Dakota grows our wheat. Without irrigation, we’d be North Dakota.”
[…]
“There will be some definite changes, probably structural changes, to the entire industry” as drought persists, said American Farm Bureau Federation President Bob Stallman. “Farmers have made changes. They’ve shifted. This is what farmers do.”
Most farmers have cutback on what they are growing. In many cases, that means chopping down trees, orchards and not planting as many fields:
“I was just talking to a farmer today who grows olives and almonds. Expect prices of almonds to skyrocket because they’re cutting the trees down because they don’t have enough water to keep them alive,” said Helstrom.
California is by no means the only place facing life threatening shortages. There are similarly alarming trends having all across the globe, particularly in arid and semi-arid places.
Texas ranchers and farmers have been dealing with returning dust bowl conditions in the panhandle and surrounding regions, with very difficult drought conditions and conflicting urban competition for water which strain supply.
Previously we showed that when it comes to Wall Street’s returns, the 8% market return benchmark that every first year analyst finds in Ibbotson’s is for naive amateurs. With corporate lobbying returning anywhere between 5,900% and 77,500%, the real money is to be made in the buying and selling of politicians. Yet in our day and age, when information propagates rapidly and when political muppets can be exposed for the Wall Street purchased frauds they are, lobbying is getting increasingly more complicated. Which leaves one other high returning “investment“, which unlike lobbying is completely riskless when one is a Wall Street firm: crime. But not just any crime, the type of crime where a firm settles “without admitting or denying guilt” and in the process is slapped with a fine that barely covers the government’s legal fees. Case in point: U.S. v. Morgan Stanley, U.S. District Court, Southern District of New York Case#11-6875, where MS was punished with the epic disgorgement penalty of $4.8 million. Of course, the fact that Morgan Stanley, who did not admit wrongdoing, generated profits of$21.6 million, is merely a triviality. But a useful one: it allows to calculate that on Wall Street crime does pay, and the IRR is in give or take 350%.
Today acclaimed money manager Stephen Leeb told King World News that we are headed into massive inflation and a major spike in the gold price. Leeb, who is Chairman of Leeb Capital Management, also said that “Fortunes will be made by savvy investors in this sector.” Leeb stated, “We saw a mania in the gold shares at the end of the 70s and we are going to see one again this time around.”
Here is what Leeb had to say: “The economy is going to get worse. The price of resources has jumped over time and that has acted as a huge tax on consumers. But we are going to see another huge uptick in inflation going forward. This time the rise in prices will not be stopped by the Federal Reserve.”
Stephen Leeb continues:
“In fact, the inflation may even be fostered by the Fed. Brent crude is trading over $112 again, and gas at the pump is already rising. Bernanke today, I’m quoting a headline, ‘Bernanke says economic data may mask suffering of individuals.’ I agree with that, but I’m still surprised to hear a Fed Chairman saying that.
Another individual on the Fed Open Market Committee said, ‘Open-ended easing is needed for jobs.’ This is the type of commentary we are seeing, even with commodity prices starting to rise….
Welcome to Capital Account. JP Morgan said in a court filing that PFG’s subpoena of the bank may be overly burdensome. Will JP Morgan find a way to get out of it? It looks like they could be off the hook for accusations of silver manipulation. The Financial Times reported US regulators are increasingly likely to drop the four year investigation of silver manipulation, failing to find enough evidence. Bart Chilton, CFTC Commissioner, told a Motley Fool reporter that this FT report is premature and inaccurate. We find out what Chris Powell, co-founder and treasurer of the Gold Anti- Trust Action Committee, thinks.
Since 1998 the Gold Anti-Trust Action Committee, GATA, has been exposing, opposing, and litigating against collusion meant to control the price and supply of gold and other precious metals. GATA has collected and published dozens of documents showing Western treasury and central bank efforts at intervention in metals markets – interventions that occur both openly, as well as surreptitiously, preventing the proper functioning of a free market in gold. Chris Powell, co–founder and treasurer of GATA and Managing Editor of the Journal Inquirer, has come all the way to our DC studio to give us an update on where GATA is in its efforts.
Also, the Federal Government is auditing the gold stored at the New York Fed. Are those who have been calling for an audit for years satisfied, or does this miss the point? We talk to Chris Powell about what this audit accomplishes, and if it even begins to scratch the surface, no pun intended.
With global stock markets trading higher, today legendary value investor Jean-Marie Eveillard, who oversees $50 billion, told KWN, “In a way one should not confuse fluctuations in financial markets or commodity markets with the end of the world. However, I think there continues to be considerable hope on the part of many investors that the Neo-Keynesian remedies which have been in place will result in a sustainable economic recovery.”
Jean-Marie Eveillard continues:
“There does have to be the realization that the hope of an economic recovery in the Western world will end up being a delusion. Investors and authorities who believe there will be a recovery are deluding themselves. But hey, hope springs eternal.
There is the continued stimulus being provided by the Federal Reserve, and of course some of that newly printed money ends up in the equity markets….
In this episode, Max Keiser and Stacy Herbert discuss jihadi bots gone wild while the President of the United States was pumping and dumping Facebook stock. Max and Stacy also discuss what the first ever Predator droned American may mean to Goldman Sachs’ bottom line as the banks begins collateralizing crime and recidivism. In the second half of the show, Max Keiser interviews burning banks artist Alex Schaefer about his recent arrest for chalking the words, ‘crooks,’ ‘crime’ and ‘chaos’ in front of a Chase Bank in Downtown Los Angeles. The eight hours in jail means that the artist Alex Schaefer has done more time than any bankster since the financial crisis began.
Breakaway Consciousness 