Previously on "The Inconvenient truth": Headline: A century ago, world population was around a billion souls. Today, seven (7) billion people inhabit our planet. To summarise previous posts, the first decades of the 21st Century will be characterised by shortages of food, energy, raw materials, land and clean water.
One man was forced to stop selling fruit along a Tunisian roadside because he didn’t have a permit. When he lit himself on fire, the ensuing riots ended a multi-decade-long dictatorship. People will put up with a lot — corruption, nepotism, cruel laws, and barbaric prisons — but they tend to lose it when they can’t afford food. This is especially true when they blame the ruling class for their misery...
According to the UN's Food and Agricultural Organization (FAO), its food price index hit a new high above the previous record in 2008. Soaring sugar, cereal, and oil seed prices were the main drivers. Now wheat and corn are on the rise, partly because of weather conditions and partly because of demand. The wealth effect (in simple language - the rise in the standard of living) in Asia will underpin prices as demand for proteins and basics spike. No more 'rice only' meals for these guys. These economies are clearly overheating and governments are putting measures in place to slow them down to fight inflationary pressure. More than anything else, food inflation is a problem. For example, the food price index in India rose over 18% in 2010.
The real worry is hoarding. When countries start to shut down exports — like Russia did after its historic fires, or India, Bangladesh, and others did in 2008 — those who need to buy agricultural commodities will chase the price higher. China is buying arable land in South America and Africa. If its a valuable resource, if its for sale, China wants to buy it. So while the US and the news media debate Sarah Palin, Apartheid in israel and whether Ben Ladin is alive, China is preparing, well aware that beneath the surface something is shifting. You will see the results on your store shelves.
And this fact might be even more surprising. At the beginning of 2007, about 8.7% of the US population were on food stamps. Today the figure is 14%. Yep! Close on 42 million people. Believe it or not. Everybody seems to be living in a bubble (excuse the pun), unaware that the ground is moving beneath their feet. As for all the countries who only have one source of income (oil) and the wealth is concentrated at the top.....good luck to them. We will be watching with interest.
Now is no time to think of what you do not have. Think of what you can do with what there is - Ernest Hemingway
H
The real worry is hoarding. When countries start to shut down exports — like Russia did after its historic fires, or India, Bangladesh, and others did in 2008 — those who need to buy agricultural commodities will chase the price higher. China is buying arable land in South America and Africa. If its a valuable resource, if its for sale, China wants to buy it. So while the US and the news media debate Sarah Palin, Apartheid in israel and whether Ben Ladin is alive, China is preparing, well aware that beneath the surface something is shifting. You will see the results on your store shelves.
And this fact might be even more surprising. At the beginning of 2007, about 8.7% of the US population were on food stamps. Today the figure is 14%. Yep! Close on 42 million people. Believe it or not. Everybody seems to be living in a bubble (excuse the pun), unaware that the ground is moving beneath their feet. As for all the countries who only have one source of income (oil) and the wealth is concentrated at the top.....good luck to them. We will be watching with interest.
Now is no time to think of what you do not have. Think of what you can do with what there is - Ernest Hemingway
H
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