"Is this the end of cheap food?"

[Bill]

Interesting entry from Boing Boing, based on a Guardian article.

I've been reading a lot about the increase in food prices lately - record high prices on grains worldwide.

http://www.boingboing.net/2008/01/21/is-this-the-end-of-c.html


The Guardian reports that food prices are rising, which is coming as a surprise to "UK shoppers aged under 50 [who] have so far never experienced food-price inflation.

The article cites four reasons for the price increase:

1. Oil prices: "$100 a barrel means food that is four-times as expensive to plant, irrigate, harvest and transport as it was six years ago. Some commodities brokers are now betting on oil going to $200 a barrel within a decade."

2. Climate: "drought, hurricanes and floods around the world last year made for terrible harvests - from Australia to the Caribbean and the United Kingdom."

3. Market speculation and use of crops for fuel: "Since George Bush announced a rush to corn-based ethanol it's done well for American corn farmers - 20 per cent of whose harvest, subsidised by the government, went into fuel tanks rather than flour mills this year."

4. Economic boom in China and India: "Around the world, and through history, people have eaten more meat as they have become richer. This is called the nutrition transition and it's now happening, very quickly, in the two most populous nations on the planet."

Jacques Diouf, head of the UN's Food and Agriculture Organisation, spoke recently of a 'very serious crisis' brought about by the rise in food prices and the rise in the oil price. Various global economic bodies are forecasting rises of between 10 per cent and 50 per cent over the next decade.

http://observer.guardian.co.uk/focus/story/0,,2243786,00.html

[Moby]

Frank's President, George W. Bush, President of The United States Of America said the economy is doing fine. That by cutting taxes, increasing spending, allowing millions of workers to come across our borders illegally, not allowing Americans to buy cheaper medicines, allowing China to manipulate their currency, letting Dick Cheney implement his energy policy and fighting in Iraq has made this country strong.

Look on the bright side. Maybe we are heading for depression but at least gays can't get married in most states.

You have to look at what's important.

Sure our grand children may be learning Chinese in school and working for peanuts but at least them damn faggots can't marry :(

[LadyMod at scam.com]

First post.

I've noticed that fresh vegetables and fruit have gone up considerably. So has meat and fish.

Second post.

LOL


Lady Mod

[KrisW]

Most of the rising food prices can be attributed to rising oil prices.

It's a double whammy. It costs farmers more to produce food and truckers more to ship it.

[Dale escondido]

You can ignore food and energy cost. They are ignored in all inflation numbers, so they dont exist.
8% surcharge on all industrial shipping which passed onto all chemicals, corrugated, paper and plastics dont exist either.
I just cant find where they sell these unadjusted for inflation items.

[KrisW]

Food prices have increased MUCH more than the inflation rate.

But as you said, food prices aren't a factor in the black magic that calculates the inflation rate.

[Dale escondido]

Energy is not either, and every area that energy impacts either. Thats were the real lie lives.
There has been 2- 8% surcharges on the trucking industry for fuel in 18 months.
Housing is factored based on the rental market, not selling price another lie.
If you shoes or a desk cost 14% more and is attributed to energy it is not an inflationary cost. This is why wages dont increase, yet all costs do. If inflation was factored accurately you would generally see wages increase appropiately and the middle class would not be losing ground.

[KrisW]

And ExxonMobil has record earnings....AGAIN.

But the governemnt tells us we have to keep consuming like good little Beta Minuses.

[Dale escondido]

Oil is a very interesting area.
As the Arabs continue to raise prices US companies benefit because their cost to extract oil is fixed and they reap the benfits.
During the 06 campaign when gas was breaking $3 the first time ,oil was breaking the $60 mark. On the west coast gas dropped under $3 two weeks before the election and went back up the day of the election.
Now with oil pushing $100 we havent seen $4-5 gas yet. I know I probably sound like a conspiracy nut, but there might be politics at play.

[Cat slave]

Hey, just because youre paranoid doesnt mean that someones not out to
get ya! (Not you personally, just the way the saying goes!)

[Moby]

Oil is a very interesting area.
As the Arabs continue to raise prices US companies benefit because their cost to extract oil is fixed and they reap the benfits.
During the 06 campaign when gas was breaking $3 the first time ,oil was breaking the $60 mark. On the west coast gas dropped under $3 two weeks before the election and went back up the day of the election.
Now with oil pushing $100 we havent seen $4-5 gas yet. I know I probably sound like a conspiracy nut, but there might be politics at play.
There are politics at play.

More oil was pumped in August 2006 then at any time in history. The same will happen hear. Saudi Arabia does NOT want a President in office that might invest in future energy sources. They will push to boost the American economy right before the election to sway American voters.

[KrisW]

It is quite possible that oil has reached peak production. Even the huge Saudi oil fields aren't producing as much as they used to.