Sunday, August 2, 2009

Supply is up.....demand is down.......shouldn't prices be too!

Dairy farmers are producing milk today at record levels but their profits are going down and for the first time in several years the USDA is having to support the prices for farmers. Gasoline stockpiles are up and crude oil storage farms are full but gas prices are not down. What has happened to the old addage of supply and demand? Shouldn't prices of milk be going down for the consumer if supply is up and demand is down, a gallon of milk is on average $4 a gallon but farmers are only recieving $1.50 of that. What is happening, is the American consumer being taken advantage of again? Crude oil storage facilities are at capacity, we are using less gas this summer and yet the rice is no going down? What is going on here? The same thing that happened to Wal-street, the middle man, the hedgers, these are the ones manipulating the market. Farmers may be making on $1.5 a gallon but don't think its the store owner, on average most stores only make .25 to .50 on a gallon of milk. It is the distributer, you know their brand names, they are the ones working both sides. Giving the farmer barely enough to survive and sticking it to the consumer but yet making a fortune in the middle. The rules of the game have changed for the American consumer, we could watch the markets, watch supply and demand and predict what will be impacting our lives, not anymore. these hedgers, market and comodity risk takers are manipulating the nations supply and demand of consumer goods and its time we done something about it before we can no longer afford to drive our cars or drink a glass of milk.

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I am a Registered Nurse and Practical Nursing Teacher.