From Zero Hedge:
A recently released report by the World Bank’s Food Price Watch confirms that rising agricultural products are sharply pushing up global food prices in lower-income nations (see “World food price uncertainty presents social risks,” in AsiaNews, 4 February 2011), especially among the poorest (where the poverty line is defined as US$ 1.25 per person per day).
The WB’s global food price (GFP) index increased by 15 per cent between October 2010 and January 2011, 29 per cent above its level a year earlier. The global prices of wheat, maize, sugar and edible oils especially saw sharp increases. According to the WB estimates, an additional 44 million people fell into poverty…
This is caused by governments around the world printing money like mad – not just in the United States, but almost everywhere. All of this money printing was done to sustain a global financial system which collapsed in to complete bankruptcy in 2008…and which is just as bankrupt now as it was then. The financial system will stay afloat just as long as the free money keeps flowing form central banks – but as long as that money keeps flowing, the poorest of the poor will suffer.
And, in the end, it won’t work. Eventually, all the attempts to sustain the financial system will fail because the problem is just too much debt – the global credit card isn’t maxed out, it is massively over limit. The debt cannot be repaid – not in any time frame which makes it reasonable. The only way to get out of the mess is by default – and the resultant economic depression which will allow all assets to sink in price to their actual value. This will be painful no matter how we do it – but it will be more painful the longer we put it off by printing money…and those who are in the worst condition (ie, some poor man trying to live on $1.25 a day – you just go ahead and try that!) will feel it first, deepest and for the longest time.
This is the end of a fiat-money based, usury-driven economic model – a model which wise people warned about more than a century ago. This is not some deep, dark secret – anyone with a bit of knowledge understands – and has always understood – that you can’t borrow your way to wealth; that money printed up by central banks without any hard backing is destructive; that only hard work, savings and careful investment can build long term, sustained growth.
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