Friday, July 27, 2012

Watch out for the inflation trigger

Report shows US drought rapidly intensifying

ST. LOUIS (AP) — The widest drought to grip the United States in decades is getting worse with no signs of abating, a new report warned Thursday, as state officials urged conservation and more ranchers considered selling cattle.
The drought covering two-thirds of the continental U.S. had been considered relatively shallow, the product of months without rain, rather than years. But Thursday's report showed its intensity is rapidly increasing, with 20 percent of the nation now in the two worst stages of drought — up 7 percent from last week.
Comment: Inelastic supply meets inelastic demand.

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