The 2011 Texas Drought  

September 16, 2011 

There is hardly any doubt that most every one of our newsletter subscribers has experienced the drought in some way.  Recently a staff member shared with us photos from the Texas Parks and Wildlife Department that I thought you might also find of interest, but first some (brief) investment commentary 

The European Central Bank (ECB) has decided, in coordination with the Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank, to conduct three US dollar liquidity-providing operations with a maturity of approximately three months covering the end of the year. And, we have a 2-day FOMC meeting coming up next week, which could result in another quantitative easing program (QE3). Government money (our money) always trumps economic conditions - for a while. I plan to watch how the market reacts over the next few days before considering any significant portfolio changes.

How's that for brief? Now back to the drought.  

June through August have been the hottest three months on record in US history, a dubious honor once held by Oklahoma since the 1930's Dust Bowl era changed the face of America.  The current drought is the worst on record based on the Palmer Drought Index.

The Texas drought map is a sea of red, with almost the entire state in extreme to exceptional drought, except for about 10 counties in northeast Texas. What's worse, little relief is predicted, and some forecasts show a strengthening of La Niña weather conditions this fall, which could prolong the drought.