Capitalism kills
Market prices for wheat have doubled in the last year. Market speculation is partly to blame.
Spreading fears of a recession make food commodities seem a safe bet because they will always be needed. But when they are needed most, this speculation makes them most expensive.
Global stocks of wheat have fallen to their lowest point in thirty years because of poor harvests caused by drought or flooding, population growth and increased wealth in developing countries and to ensure food supplies, rising transport costs because of fuel costs, and farmers are switching to growing bio-fuels. Many governments have placed restrictions on wheat exports.
Rice prices have surged to a 20-year high in the latest sign of global food inflation, creating policy headaches in Asia, where more than 2.5bn people depend on cheap and abundant supplies of the grain.
Potato prices are following the upward trend.
Worldwide food prices have risen sharply and supplies have dropped this year, according to the latest food outlook of the United Nations Food and Agriculture Organization. These changes represent an “unforeseen and unprecedented” shift in the global food system, threatening billions with hunger and decreased access to food. [more details, country by country]
Speculators escalate staple food prices
More than 850 million people around the world suffer from chronic hunger and other associated miseries of extreme poverty. According to the FAO, 37 countries-20 in Africa, 9 in Asia, 6 in Latin America, and 2 in Eastern Europe-currently face exceptional shortfalls in food production and supplies.
We are fighting a losing battle, UN admits. The United Nations warned yesterday that it cannot keep up with the dramatic upward surge in world commodity prices.
Wheat profits have risen 400% in eight years - their highest ever rise.
“But it’s legal” they will say.
Should speculators be allowed to put starving people into imminent risk of death?
Can it be right?
“But it’s the law of the jungle”, others will say.
Are we still in the jungle?
Or does civilization wish to take better care of people?
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