Sunday 7 November 2010

FOOD PRICE RIOTS

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More food riots have broken out in recent weeks.

The latest has been in Egypt where food prices have more than doubled during the last 12 months.

Since February, when 40 people were killed in Cameroon, riots have spread to Mauretania, Mozambique, Senegal, Mexico, Haiti, Ivory Coast, Morocco, Uzbekistan, Yemen, Bolivia, West Bengal and Indonesia.

The media coverage of these events is poor.

The driving force behind the price riots and the people's reactions to the price rises, with the exception of perhaps Haiti, is Commodity price bubbles driven by finacial speculators who currently struggle to make money in convential bond and equity markets.

This situation can only get worse as more and more financial institions accross the globe switch their dealing strategies from stocks, shares and bonds to food and metal based commodoties and derivitives thereof.

How will governments around the globe coordinate a response to this looming ethical and financial disaster. After all, you can't print food!

Comments welcome.

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