As Gold and Silver Rises, Food Inflation Reaching Dangerous Levels In China

For those who live in the West, rising food prices brings a moment of frustrations and perhaps a bit of switching out steak for ground beef.

In China, it is downright terrifying.

According to the Associated Press, food prices in China are rising to crisis levels as sugar has risen 80% in a year and high quality rice has rocketed up 60%. These staple foods are critical to a country with 1.6 billion people, many of who spend much of their daily earnings on food.

Gold, Silver, Oil and All Commodities on the Rise

In the past decade, gold, silver and oil have risen, as well as industrial metals and food. In fact, cotton has gone limit-up (over 10% per day) several times in 2011 alone. This is due to four major factors: debt, devaluation of fiat currency, the exploding growth of population on the planet and the movement of billions of people to a more developed lifestyle in India and China. At a certain point, prices will rise to the extent that some people will simply be unable to afford food.

And it is beginning to happen.

What if Egypt style riots hit China?

China has always had to worry about their population. At 1.6 billion people, China is more fragmented and unstable than the one party state cares to admit. The Chinese government can maintain control of their people through intimidation, censorship and violence. However, if people can't eat, any country can explode from the inside.

If Food Riots break out in China, Chinese Government may blame "Fat" Americans

Anytime people revolt in a country, the government tries to find a scape goat. And that scape goat, in China, could be Americans who are seen as over-eating and over-indulging. It would be easy for Chinese propaganda to show Americans eating a Big Mac while Chinese starve and say, "You see, it's the American's fault. They are 'stealing' your food." The Chinese may plan to "Punish" America by dumping the dollar or doing anything Anti-American to deflect Chinese anger away from themselves. This could cause an unexpected ripple effect on our economy. You could see the dollar devaluate and gold and silver explode higher.

What should I do? Forget Dollar Deflation. Prepare for Food Hyperinflation

People have been talking about hyperinflation for a long time. And they believe that hyperinflation starts when prices begin to go up everyday. Well, it's beginning to happen right now with food. You could see the price of milk and beef double in the next 12 months. You could see the price of sugar triple in a year. It is important that you plan your food purchase. If possible, consider growing vegetables and other foods that you can harvest on your own property.

While the chances of a food riot in America or Europe is low, the chances of Food riots in Asia are high and that can directly affect you.

Here is a quick list of things to do in order to keep yourself better protected.

• Grow food
• Budget your food shopping trips
• Consider investing in Gold and Silver to hedge your dollar devaluations
• Stay on top of news concerning food prices and food shortages