Egypt's unrest may have roots in food prices, U.S. Fed policy
Let's put quantitative easing aside; it isn't, IMO, the biggest factor in rising food prices.
So let's get this straight...
(1) OPEC starts squeezing oil prices, pushing them higher and higher, currently up to $100/bbl.
(2) Farmers need fuel for tractors and it takes more fuel to transport the food from the farms to the consumers. The higher prices are passed on.
(3) Oil isn't just turned into fuel and burned; it's used in chemical synthesis, to create, for instance, fertilizers? And pesticides? More expenses passed on to the consumers.
(4) Consumers in OPEC countries see food prices rising as fast as oil prices, don't get more money from their governments, and riot.
Tuesday, February 01, 2011
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