According to Sky News from the UK, http://news.sky.com/skynews/Home/Business/A-Senior-HSBC-Economist-Warns-Of-Food-Riots-In-The-UK-If-Prices-Continue-To-Soar/Article/201103215948496?lpos=Business_Employment_First_Article_Region_0&lid=ARTICLE_15948496_A_Senior_HSBC_Economist_Warns_Of_Food_Riots_In_The_UK_If_Prices_Continue_To_Soara "senior economist at the worldwide bank HSBC has warned of civil unrest in Britain if food prices continue to soar." According to the article, this is due to the fact that even in the developed world, there has been very low wage growth to compensate for the price increases we've been experiencing. The article blames in part, "extreme weather" as destroying crops, towing the liberal agenda, but I believe the main reason has been the push by the left to promote Ethanol additives in gas.
Ethanol is made from corn. Corn has been grown in the US to feed cows and for export to the Third world countries for food. But, with the US government subsidizing the corn crops farmers grow to sell to energy companies for Ethanol production, there has been a worldwide shortage of corn to feed the livestock and people elsewhere. In addition, corn-based ingredients are used in a myriad of consumer food products, so the price of EVERYTHING has been going up. Talk about unintended consequences. . . Add to that all the unrest in the Middle East raising the price of fuel, thereby further increasing the cost of shipping the food to market, the situation has gone from bad to worse. . .
The reality is that Ethanol is less efficient than petroleum. It cannot be shipped in a pipeline, so trucks must be used to bring it to market. That means gas. It costs more per gallon of fuel to manufacture and ship Ethanol than to refine and ship petroleum based products to market. But the left is so committed to the "green" cause that they refuse to see it. If I can see it, why can't the politicians?
Their well intended policies are contributing to the misery and suffering in the world. . . And we are the ones having to suffer the consequences of the rising prices. At least we in the West are in a better position than those living in the Third World. When will the insanity end? In the meantime, continue to stock up on staples, as things are going to get worse before it gets better, whenever that may be. . .
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