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Solar panels for bread & paper bills for cheese….

February 2, 2011

I frankly haven’t had much to comment on Egypt and the islamic influences – but when I read about the impact of QE2 on the price of staples, then I got it

The liberals are pissy about country-making-by-military. How about country-destruction via crappy monetary policy? Fortune mag:

 Kevin Kaiser, sent me a highlight from The Grocer (an industry trade rag) that inflating food prices are making ordinary breakfast items like orange and apple juice a “luxury.”….

…. Here are the 6-month price percentage moves in some of the things people need to live with:

  • Cotton = +125.7%
  • Sugar = +82.6%
  • Corn = +59.0%
  • Coffee = +41.4%
  • Rice = +40.5%
  • Oats = +36.6%
  • Copper = +36.1%
  • Lumber = +33.8%
  • Oil = +25.1%

Yeah, I guess for the sake of professional policy makers in DC who get dinner for free and a car service to work, I should stop there

Here are the ugly things – emerging countries often have younger, more underemployed populations who are living on the edge of subsistence. They can’t absorb price hikes and eat. Fortune again:

 here’s some global starvation math we can’t hide from – immediate-term inverse correlations between the US Dollar Index and three major global food prices:

  1. Corn = -0.91
  2. Rice = -0.90
  3. Wheat = -0.85

Those are extremely high (and alarming) correlations. So the next time someone tells you that the US Dollar and the policy that backs it doesn’t matter to the price of the Number One food staple for 3 billion of the world’s people (rice), forward them the math

But wait – we can grow on GREEN jobs, right? There’s lots of sun in Egypt, right?

2008: Rising corn prices are already affecting everything from the cost of tortillas in Mexico City to the cost of producing eggs in the United States

As I remember, there were tortilla riots in Mexico when this happened in 08…But that’s ok. Let the people eat solar panels and paper bills!

For supposed sensitivity towards other countries not being treated as a colony to the USA, we’re very much like the clumsy giant who didn’t mean to crush your house, sit on your roof and stomp on your crops – but did any ways. So far, we’re also too unaware to apologize and repair the unintentional damage.

UPDATE: Hot Air – instead of acknowledging their part in the play, much less apologizing or trying to undo it – the tool is calling it “deplorable”. Hungry people do weird things – acknowledge the full systems impact, or acknowledge you can’t comprehend unintended consequences – or just be silent.

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