By Craig Hasten
February 3,2011
Finally, we are starting to see the mainstrean media cover the story of the food inflation crisis that is now hitting the world. I was glad to see MSNBC dig deep into the story and expose the real reason for the rise in food prices. Finally, we are starting to hear the mainstream media admit that the Federal Reserve's money printing is starting to have a negative effect in terms of inflation. (see video below)
Sadly the devaluation of the dollar and the rise in food inflation is only going to get worse as time goes on. As long as Ben Bernake stands before us and proclaims that his decisions on monitary policy are not the reason for the problem, the problem will only get worse.
What is a real eye opener is seeing that people in other nations are spending upwards of 80% of their income on food. It is not hard to see why they are angry and protesting for change in their governments. It is only a matter of time before food inflation hits the U.S. on this level. We have already seen dramatic increases in food costs over the last year and as this report predicts we can expect to see upwards of an additional 20% increase this year. The question is what will happen to this country when the price of food spirals out of control?
2 comments:
Great article
Bubbles come in all shapes and sizes.
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