Glenn Beck: Perfect Storm for Inflation: Corn, Oil Prices on the Rise Friday, No

Glenn Beck: Perfect Storm for Inflation: Corn, Oil Prices on the Rise Friday, November 19, 2010 This is a rush transcript from "Glenn Beck," November 18, 2010. This copy may not be in its final form and may be updated. GLENN BECK, HOST: All right. This show is — this one is — it's not for the faint of heart. It's time to take your head out of the sand and prepare for what is coming. Now, I hope that I am wrong. But I'm asking to you use some common sense here. The price of raw materials like cotton and corn are on the rise — and I mean dramatic rise. Cotton is the highest in 140 years, is it not? ERIC BOLLING, FOX BUSINESS NETWORK: Highest price ever traded, Glenn. BECK: Ever traded. OK. Companies can no longer afford to eat the rising costs. So they're going to be passed on to you. If you think, well, I just won't eat corn again — oh, problem with that one: Everything is connected. For example, the typical grocery store — let me ask you guys, how many — how many products are in the grocery store that are connected to corn? Do you think? AUDIENCE MEMBER: A lot. BECK: Give me a number, anybody? AUDIENCE MEMBER: Five hundred. BECK: Five hundred, a thousand? Four thousand products — 4,000 products have corn ingredients on the label. Now, this is Eric Bolling. He is the host of "Follow the Money," which is on the Fox Business Network. How are you? BOLLING: I'm great. Things are going up. BECK: OK. You and I talked about this I think it was Monday morning, I came in. We — at Fox, we have really intense conversations at times in the hallway. You'll be passing and go, wait a minute, oil and corn are going through the roof, right? People are going to be starving to death — you are like, yes, yes, it's going to be bad. So, I asked to you put together and explain exactly what's going up and why. BOLLING: Sure. BECK: Vilsack said the corn thing, this is all just — what did he say — it's all just speculators. So, it's not going to really — it's not going to worry — we're not going to worry about it? BOLLING: And they'll — the government will tell you, people will tell that you we don't even have inflation. The reason for that is because the government puts out an inflation number that removes food and energy. How convenient, right? Because the only two things that we really use every day — food and energy. BECK: Food and energy. OK. BOLLING: So, you remove that and things don't look that bad. BECK: He says, "I'm sure the commodity prices necessarily translate - - I'm not sure they necessarily translate directly and proportionately into food costs." Let me show corn. They go up and down all the time. Show the commodity index for corn and what has happened here. Look at this. Look at this. That is gigantic. Can you show — can you show cotton? BOLLING: All-time high. BECK: All-time high. Cotton was huge here. Do we know anything that cotton — were prices up in — BOLLING: In 1995, there was a cotton — a bit of a cotton short shortage. People — that would be called a panic for cotton prices. They spiked. However, when that happened, guess what price oil was per barrel in 1995. Throw a number out there. BECK: 1995? I bet it was like $40, $30? BOLLING: Try 15 bucks a barrel. BECK: Fifteen dollars. BOLLING: So, a cotton spike didn't feel like a brand new cotton spike right now with $82-barrel of oil and all the other prices going up. BECK: OK. So how many people here — how many people here believe that inflation is not happening? (LAUGHTER) BECK: You go shopping, right? Have you noticed the price increase? You have noticed anything that you've gone, "Holy cow," yet when you are in there? Anybody give an example? Laura, I see — AUDIENCE MEMBER: Milk. BECK: What did you say? AUDIENCE MEMBER: Milk. BECK: Milk. AUDIENCE MEMBER: Milk was running $2.99 maybe a month or two ago. My husband saw it for $3.99 this week — $3.99 a gallon. BOLLING: Glenn, milk up about $1 a gallon in the last year. A lot of things are made from milk. A lot of cheeses — milk prices going up affect a lot of other things. BECK: OK. I want to — I want to just go on this. Let's just look at corn — because if we have corn, and may I play something. This is from me a long time ago when we started — we were debating ethanol. Watch what I said when we were debating ethanol, this is like, I don't know, four years — three or four years ago: (BEGIN VIDEO CLIP) BECK: What's the cause of this? Well, it's something we have told you about for a long time. We are burning our food supply. (END VIDEO CLIP) BECK: Ethanol, made of corn. And I talked there, I said, if, God forbid, anything happens, we'll be screwed. BOLLING: Right. One-third of all corn production is used to produce ethanol right now. And if that were to go up, that puts more pressure on corn. BECK: OK. The corn — what you don't understand is corn not only affects anything, corn syrup, not only affects corn syrup, but it also affects the price of meat, because we feed our pigs, our chickens, our cows corn. BOLLING: About 40 percent of what the corn — the bushel of corn — goes to feeding our livestock. BECK: Perfect. BOLLING: By the way, pick up almost any product in the supermarket, the 4,000, and you'll notice "high fructose corn syrup." That's where you take the corn and you pull the kernels off and they mash it and make the syrup out of that. Everything is sweet. BECK: The two things that really concern me are oil and corn. BOLLING: You're right. BECK: Because oil and corn — you have India and China, these new nations that are now coming on line, and they're saying, oh, they're going to be great, you know — the emerging world — they need more rice. They need — they need more of everything. I saw — I don't know if it was in the Wall Street Journal about energy in China. They have doubled, what is it their coal production in like three years? BOLLING: Not only that, they have now surpassed the United States in energy usage per capita — not per capita I'm sorry in total energy usage on their way to per capita, Glenn, because they are doing it so quickly. They are rapidly increasing. They have a food problem. They have an energy problem. But they are solving it better than we are. BECK: OK. So you have — if you take out energy, it's not just gasoline. I have a friend who is Jon Huntsman. He has the big chemical plant. He told me, he said, Glenn, you use oil in the tablets that you take for medicine. BOLLING: Sure. BECK: You use oil in everything. BOLLING: Look at it this way: The cotton at all-time high. Jeans, coats. So you say, what about wool? Well wool prices have gone up, too. You say how about polyester? BECK: Oil. BOLLING: It's almost all oil. BECK: OK, so here's the thing: America, I just want you to think of this. The world is changing. The world is changing. And you can listen to yourself in the grocery store or you can listen to the people in Washington. Now, maybe they are right. Maybe in the end this all goes away and this is just a little spike. Maybe they are right. But we're talking about the future of our country and we are talking about our children. So now what do you do about it? Not the big Wall Street investors. I'm not going to tell you how to invest your money. What do you do about it? Real life next. (COMMERCIAL BREAK) BECK: If — if I had one thing to describe my family growing up, it would be mason jars. I may be one of the only people in Manhattan that have mason jars for drinking glasses because that's what we used — we used the mason jars for drinking glasses when I was growing up. I think because we couldn't afford real glasses. My mom used to can and my aunt still does. I just talked to my Aunt Joanne here recently. She just finished canning. They learned it from their mom. This is from the Great Depression: "Of course I can." But read this. "I'm patriotic as I can be and ration points won't worry me." Why we think now somehow or another food will always be plentiful is beyond me. We now go to stores because nobody really does this, some people still do. We should learn this, make sure it's not a lost art. Some people just go to stores and we always just think that stores are always going to be there and they will always have food on the shelves. It is an anomaly. This has been an incredible time period in the history of the world. Now, what happens? What happens if you are on the edge and you lose your job? My faith teaches that you should have food storage. It took me a long time to do it. It took me about a year to actively build it up I have a year's a worth of food storage and I have weapons. But I have a year's worth of food storage. And one thing that I didn't realize would happen to me. When I finished, my wife brought me downstairs and she said we are finally finished. And she went back upstairs and I just sat there and I mired it for a while. And this isn't going to come as a surprise to you but I actually wept because of this. As a dad, the weight was lifted off my shoulders. The weight is so heavy worrying about what if I lose my job? It's amazing what happens. Even if nothing bad happens in the world, what food storage, what a blessing it is. Lisa Bedford calls herself "The Survival Mom." She is here. She teaches food storage and preparedness classes, but that's not what you did in the past — you have been doing this for two years? Two years. BECK: What made you start getting into food storage? LISA BEDFORD, THE SURVIVAL MOM: You know, we were where a lot of families are right now with just the daunting realization that the world is changing as you mentioned earlier. And my husband is in construction in the Phoenix area. And even though our business was doing OK two years ago, we saw bad things happen to good people. And jobs lost, homes lost. And one night my husband and I said we need to be proactive and so we did the easiest step possible: We actually just went to the grocery store with two carts and we began filling them up. BECK: It's really hard. I know when my wife and I started — just the calculation of OK how much would we eat in this amount of time and how much — I mean, it's daunting. It's daunting. You have put together a system for it, right? Like where would people start? BEDFORD: I think that for just at the very beginner level, I think a challenge to give them is to say prepare for one week's of emergency and assume you have no power. And that starts the wheels turning. You start thinking OK what kind of food can I set aside that doesn't require refrigeration. You start thinking about things like shelf life. You start thinking about family allergies and preferences because you want to store things that make sense for your family. It is not a one size fits all plan. BECK: I will tell you this. I'm a pretty prepared guy. But we lost power for, gosh, a week here this last winter. And I realized how unprepared I even am. BEDFORD: Right. BECK: I mean, I'm prepared. But we got into it like four days and I'm like OK I don't know if we have anymore batteries left. I don't know if we have this. I don't know if we have this. It's bizarre. This obviously is — we're going down the road of, you know, total meltdown, which God only knows. But what I want you to focus on tonight is just the rise of inflation. How close are you to the edge? Are you the average American that is living paycheck to paycheck? Now, how do you — that paycheck turns off or if inflation goes up and you can't afford new clothing or you can't afford some of the food because it's just gone up in price by 20 percent, how do you survive? What can you do now? We'll go into that next. (COMMERCIAL BREAK) BECK: You want to save your country, you have to be part of the solution, not the problem. You have to think outside of the box. We were just talking about people who live on the edge, how many millions of Americans are living on the edge. Let's say oil shoots through the roof, we have $5 a gallon for gasoline. That translates to inflation all across the board. People who are living on — we already have 50 million people living on food stamps right now. If it collapses because of oil prices, how many more people need to go on to food stamps? It is Cloward and Piven. Be a shelter for your family and then if can you afford it for others as well. I want to talk a little to the audience. Katie, we were talking during the break and you are just starting to do some food storage of some kind. Why? KATIE, AUDIENCE MEMBER: My husband started a business at the beginning of the year. And it depends on cotton. BECK: Holy cow. KATIE, AUDIENCE MEMBER: And we have actually watched it absolutely ripple through his company but the impact that it has on our household because you can't just constantly pass that on to your vendors and your customers because they are in the same position we are. So we eat more and more of it in terms of the profit and one of things we can do is try to buy and store. BECK: Christine, you were saying the same thing. You are in livestock. CHRISTINE, AUDIENCE MEMBER: The cost of feed has gone absolutely through the roof. And I actually board horses but I have trouble, I can't pass it on to my boarders necessarily because they are really in the same boat as everybody else. So it does make it real difficult. BECK: That's what we were saying, I told you on this program before that the experts tell me that there is — corn could go — all of the food is like this. Sugar is like $60 or $70, a little bag of sugar, an ear of corn could be $11 — $11. The only thing that will stop it from being $11 is the market can't bear it. I mean you could raise it to a million, it doesn't matter. So where does it stop? Six before people can't afford it anymore? We have, I can't see here because of Harry. Is this Nancy? Nancy, you were actually in — you live here in Manhattan. NANCY, AUDIENCE MEMBER: Metropolitan area. BECK: So you are living in a place where everything is very small and very expensive. NANCY, AUDIENCE MEMBER: Right. BECK: Are you food storage? NANCY, AUDIENCE MEMBER: I am. What I do is minimal compared to some of the other moms that I have been talking to and some of the moms that "As a Mom" who have a real production going on, but I do and I have increased it over the year, I would say, for this past year. And you don't need to necessarily be a tin hatter living in a bunker typing away on the computer to believe that this is happening. All I have to do is remember — I remember as a kid the Carter years and the inflation that took place and what an impact that had on middle income average families. I'm one of six and my father was a teacher and our household overhead just rose dramatically. But the salaries didn't. And I remember as a mom I have appreciation for what my mother went through knowing that she had two kids nearing college and four others to feed and the whole nine that goes along with it. And as a mom, I appreciate that and I have that same anxiety. So it's only a matter of common sense. BECK: "As a mom" is a great phrase and I will explain why here in a second and a little more direction on where to go and how to start, next. (COMMERCIAL BREAK) BECK: I want to — on the bottom of the screen, you should see some websites that are providing information for you on how to get involved and what to do. The inflation we're tracking. We are also looking. There are ways for you to get involved in the littlest way all the way to I want to have food storage for 10, for five years. You can do whatever you want. Just listen to your gut, please. I want to tell you a little bit about asamom.org. Lori, it is .org, right? OK, Lori Parker has been on the program. She is the president and founder asamom.org. Also Barbara Samuells, she is the co-founder of 912superseniors.org. Quickly, what is the one piece of advice you would have for somebody who is watching right now? LORI PARKER, ASAMOM.ORG: If you don't know about food storage, get online. Find out about it. Our front page we have a thing that's food storage 101, I wrote a year ago because people were asking questions. What is food storage? Why is Glenn a Mormon in food storage? So I answered all of that. (LAUGHTER) PARKER: So we have an answer. We have food storage 102, has tons of links, just Google it. BECK: Since Lori brought it up. I am I Mormon and this is a faith, just ask a Mormon. They will be helping you can and it will be crazy. Barbara, tell me about Super Seniors. Because, you know, the one thing that really bothers me is that seniors are retiring. Stop retiring and get involved. That's what your project is doing. What's the piece of advice you have? BARBARA SAMUELLS, 912SUPERSENIORS.ORG: Yes. OK, well, since you asked the seniors to get involved, they have inundated our website with offers of home schooling, teaching, helping — 700 of them have volunteered to do the food inflation survey. They are out there already. We have 100 survey results. And the seniors know what it is to plan for the future. They're planning now. Food storage canning, they are planning now. BECK: OK and one more. Lisa is here and go to her website as well, thesurvivalmom.com. You can find all this information. Just remember GlennBeck.com, it will direct it all — direct you all to these sites and so much more information. — Watch "Glenn Beck" weekdays at 5 p.m. ET on Fox News Channel Content and Programming Copyright 2010 Fox News Network, LLC. ALL RIGHTS RESERVED. Copyright 2010 Roll Call, Inc. All materials herein are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of Roll Call. You may not alter or remove any trademark, copyright or other notice from copies of the content.     Carl Ray Louk "FRIENDSHIP NEVER ENDS" SG-1996 "LET LOVE LEAD THE WAY" SG-2000 "THE PHOENIX SHALL RISE" SD "EVEN A MAN WHO IS PURE IN HEART AND SAYS HIS PRAYERS BY NIGHT, MAY BECOME A WOLF WHEN THE WOLFBANE BLOOMS AND THE AUTUMN MOON IS BRIGHT." LT-1941 "FLESH OF MY FLESH; BLOOD OF MY BLOOD; KIN OF MY KIN WHEN SAY COME TO YOU, YOU SHALL CROSS LAND OR SEA TO DO MY BIDDING!" CVTD-1895 "FROM HELL'S HEART I STAB AT THEE, FOR HATE SAKE I SPIT MY LAST BREATH AT THEE" CA-1895  "I HAVE BEEN, AND ALWAYS SHALL BE YOUR FRIEND" Spock  "TRICK OR TREAT, TRICK OR TREAT CANDY IS DANDY BUT MURDER, OH MURDER, IS SO SWEET" CRL-2003  "EYE OF NEWT, AND TOE OF FROG, WOOL OF BAT, AND TONGUE OF DOG ADDER'S FORK, BLIND-WORM'S STING, LIZARD'S LEG, AND OWLET'S WING. FOR A CHARM OF POWERFUL TROUBLE, LIKE A HELL-BROTH BOIL AND BABBLE. DOUBLE, DOUBLE, TOIL AND TROUBLE, FIRE BURN, AND CALDRON BUBBLE" WS MySpace.com: www.myspace.com/carlraylouk http://www.myspace.com/carlraylouk Yahoo Group: Yahoo! Groups : LouksHauntedGraveyardhttp://groups.yahoo.com/group/LouksHauntedGraveyard/ Yahoo Group: Yahoo! Groups : TheWorldAccordingtoCarlRayLouk http://groups.yahoo.com/group/TheWorldAccordingtoCarlRayLouk/