Explosive Food Inflation-- The Big Presidential Issue?

"Wheat prices have risen by 130 percent since March of last year, and soy prices have risen 87 percent, the United Nations said, with food now representing 60 percent to 80 percent of consumer spending in developing countries. In general, the World Bank has said that food prices have climbed about 83 percent worldwide over the past three years.

"Major agricultural countries must urgently change their policies to avoid a social explosion from rising food prices, a panel of United Nations experts warned Tuesday, adding their voices to new concerns about the proper balance between saving the environment and feeding the poor.

"Modern agriculture will have to change radically if the international community wants to cope with growing populations and climate change, while avoiding social fragmentation and irreversible deterioration of the environment," said Salvatore Arico, a biodiversity specialist with the United Nations Educational, Scientific and Cultural Organization, or Unesco, summarizing the report by about 400 experts.

The report tries to provide a comprehensive view on how to produce food that is less dependent on fossil fuels; favors locally available resources, natural fertilizers and traditional seeds; and tries to preserve the soil and water supply.

" it is a battle between the world's 800 million automobile owners, who want to maintain their mobility, and the world's 2 billion poorest people, who simply want to survive.

Whenever the food value of a crop drops below its fuel value, the market will convert it into fuel. Ultimately, this dynamic risks driving up world food prices, destabilizing governments in low-income nations and disrupting global economic growth."

"In 2000, McCain ran for president and reiterated his longstanding opposition to ethanol subsidies. Though it crippled his chances in Iowa, he argued that ethanol was a wasteful giveaway. A recent study in the journal Science has shown that when you take all impacts into consideration, ethanol consumption increases greenhouse gas emissions compared with regular gasoline. Unlike, say, Barack Obama, McCain still opposes ethanol subsidies."

 1  |  2