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Saturday, August 4th, 2012

GMO Warns of Foodageddon; Drought May Cause Problems for Chinese

Author:     RESHMA KAPADIA
Source:     Emerging Markets Daily
Publication Date:     August 3, 2012, 4:55 P.M. ET
 Link: GMO Warns of Foodageddon; Drought May Cause Problems for Chinese
Stephan:   Here is what I think is an accurate analysis of what's coming in the food trend. I believe it is time for communities to begin addressing how they will meet their essential needs, particularly those at the economic bottom. These things take time to work out though. And families need to make decisions. What is coming is going to force us to place national wellness first. It is just a question of how painful we're going to make it, by not addressing it based on facts.

Jermey Grantham, chief investment strategist of Boston-based money manager GMO and a closely-watched bear, put out a quarterly letter to investors this week focusing on a recent pet topic of his: A long-term and politically dangerous food crisis. In a 17-page-letter kicked off with lyrics from Bob Marley, he lays out the risks facing the world from the strain on basic resources, including water and grains. He points to China as one of the few parts of the world taking the prospects of future resource shortages seriously.

Grantham says:

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