‘The Economist’ is surprised by world food prices
Friday, April 25th, 2008
There are riots in Haiti, Cameroon and the Philippines caused by sharp increases in the price of staple foods. What’s the cause of the problems? The Economist says it is partly demand from countries like China and India switching to more meat, plus the use of crops for biofuels. The article describes the forces that create a time-lag in stimulating greater production, because subsidies have softened the market signals. The Asia times says it is because of the Federal Reserves printing more dollars and the impact that has had on international prices. Neither article addresses the question of the plateauing of the supply of cheap oil and the further inexorable impact this will bring. The Economist article, even has a nicely placed Maserati advertisement to show that even with this crisis the hope of ‘business as usual’ prevails.
This article has been filed under News.