Monday, April 14, 2008

Food fight

No not the one in Animal House, the one that's likely to start from massive rise in food prices world wide. Some would have you believe that the cause or causes of this is due to a shift to corn production. Others point out that the rise in energy prices has prices climbing 120%. The real cause has nothing to due with production shortages or shifts in crops but with speculators who see that we all must eat and therefore are putting all their eggs (pardon the pun) in one basket. As I see it this situation is going to continue for some time as the subprime mess works it's way through the system on a global scale. Look at the commodity prices for food and energy and you will see where investment dollars are going.

Food wars?

1 comment:

Robert Rouse said...

Unfortunately, rising fuel costs are going to affect everything. Delivery, farm equipment, etc. all play a profound roll in getting products to us. Every time fuel prices rise, the rest of the economic caboose follows.