Monday, September 6, 2010
Food prices: Boon for US, starvation for 3rd World
When I first read of the severe drought in Russia and the loss of approximately 20% of their crops, I also read--immediately and more than once--that it would be a boon for America and American farmers. In other words, it would be a boost to and for business. Some of our pocketbooks. What I also knew it would do, however, is be a burden to the poor of the world who depend on food commodities for survival. So what do I see today? An article pointing out just that: UN to Hold Crisis Talks on Food Prices as Riots Hit Mozambique; After violence in Africa and protests in Egypt, Serbia and Pakistan, the UN are to urge action on the rising cost of food The UN has called an urgent meeting on rising global food prices in an attempt to head off a repeat of the 2008 crisis that sparked riots around the world.
A demonstrator throws a tire on a burning barricade during riots in Maputo, Mozambique, on Wednesday. Police fired rubber bullets and teargas during protests against rising prices. (Reuters)Seven people, including two children, were killed in Mozambique this week during three days of protests triggered by a rise in the cost of bread. There has also been anger over increasing prices in Egypt, Serbia and Pakistan, where floods destroyed a fifth of the country's crops.
So bully for us, right? It's good for our business and money. To heck with the Third World and those poor beggars. Literally.
Link to original article: http://www.commondreams.org/headline/2010/09/04-1
Subscribe to:
Post Comments (Atom)
Posts
2 comments:
I think it'll be okay for US agribusiness, not necessarily for farmers.
And not necessarily for us. A 20 percent reduction in one of the world's biggest food producers will make those products more scarce EVERYWHERE... hence higher prices. Here too.
Course we have no idea what food really costs here, since the USDA is a very big hit on the federal budget and that should be folded into the cost of our FOOD, just as our military actions in the mideast should be folded into the cost of our (not so cheap) gasoline prices.
Looking at it that way, we're probably paying five bucks a gallon for oil.
Really even the American farmers are still rather dismayed due to the unprecedented basis spreads between the actual grain co-ops and the commodity exchanges - they're not making as much money as they ought to either. The lousy economy makes getting the grains/food ingredients distributed more of a pain and everyone suffers.
Post a Comment