Obama's Latest Bailout Target: U.S. Farmers (InformationLiberation)
Monday August 13th, 2012
Obama has a brilliant new plan to save U.S. farmers suffering from drought--give them hordes of taxpayer money for their produce, "freeze it," then use it at a later date.
CHICAGO -- President Barack Obama will announce on Monday that the Department of Agriculture intends to buy up to $170 million of pork, lamb, chicken and catfish to help support farmers suffering from the drought, a White House official said.First off, as the article highlights, this is about buying votes in swing states. Second, this will drive up the prices of food even further as 170 million new dollars will be bidding on the same scarce food as the general public. Third, the idea of buying the food now to "freeze it" is also moronic, for one, frozen food is worth less than fresh, for two, it will lower demand in the future which will wreck havoc in the markets as producers selling in the future will not be able to get a high market price for their produce, but an artificially lowered price thanks to the glut of produce from the bailout being dumped onto the market.
The food purchases will go toward "food nutrition assistance" programs, like food banks.
During a visit to Iowa, a political swing state that the Democrat hopes to win in the Nov. 6 election, Obama will press Congress to pass a farm bill with short-term relief measures for the ranchers and farmers hurt by the drought.
The president will also direct the Department of Defense to "encourage" its vendors to speed up purchases of lamb, pork and beef and freeze it for later use.
"This is a win-win. Farmers and ranchers will have an opportunity to sell more of their products at this critical time and taxpayers will get a better price on food that would have been purchased later," the official said.
Like all government intervention, this is a lose-lose for everyone involve, except of course Obama and his politically connected cronies, they'll be given hordes of stolen taxpayer loot they in no way deserve.
Chris runs the website InformationLiberation.com, you can read more of his writings here. Follow infolib on twitter here.