Monday, February 05, 2007

Skyrocketing Food Prices Could Create World-Wide Chaos

High Corn Prices Could De-Stabilize World!

Skyrocketing Food Prices Could Create World-Wide Chaos

Example:
Corn Demand For Ethanol Creates Food Crisis In Mexico
Is it possible that the creation of demand for corn ethanol was a planned strategy by the Illuminists to assist in fomenting "chaos" around the world by impacting on both the oil markets (driving down oil prices) and increasing costs of food?
Whenever, the subject of the Illuminati activity and planning comes up, one should always remember the core strategem is to create "chaos" so that the result can be an "illuminated order" result that satisfies illuminated goals. It would appear that rising corn prices and ethanol demand is destined to create a unique form of chaos that touches more than merely fuel and food prices. Take Mexico for example.
The skyrocketing price for corn, driven by ethanol manufactures as a gasoline fuel blend has created something of a crisis in Mexico's key staple, corn-tortillas. Rising prices have priced corn tortillas to exorbitant levels making the main staple of Mexico's poor nearly unaffordable. If prices continue to rise further, the ramifications could be grim.
Mexico's government, for the time being has stepped in and capped the price of tortillas as temporary stop-gap measure. The increased demand for corn to make ethanol-blended gasoline is expected to escalate still further as the fledgling ethanol industry expands from America's midwest to other parts of the country. Ethanol blended gasoline is but the latest effort to stem the use of foreign oil for gasoline.
Some commodities traders specializing in the grain markets continue to predict that future corn supplies will fail to meet the rising demand for corn, triggering prices to unheard of levels for not only corn but for other grains rising in sympathy. Some market analysts see corn prices perhaps doubling by the end of the year, if drought conditions remain in the corn-growing belt of the United States. Such developments will only exacerbate prices for food in third-world nations like Mexico, where the poor will find it harder to afford food, and thus creating political instability.
The spiraling costs of corn is reverberating throughtout the agriculture industry. Rising corn prices mean higher feed costs for livestock, such as Beef, cattle and poultry. Feed prices are already up 25% although, that's not as much as the actual change in corn prices. Corn was priced at $2.11 a bushel back in September and then skyrocketed to $4.08 in December. The increased cost of livestock feed will eventually result in changes in livestock production, eventually leading to higher prices for meat and poultry.
Lest readers think this is much ado about nothing, be advised that the issue was noted last year by that mainstream business media outlet - Fortune Magazine. An Arkanas Business magazine website notes:
"While the big processors can raise prices, the fear is that higher grain prices and the diversion of grain to fuel could eventually lead to food shortages and, consequently, conflicts over food. Many of the world’s poorest people simply won’t be able to afford more expensive grain.
An article in Fortune magazine last year put it this way:
“The grain required to fill a 25-gallon SUV gas tank with ethanol, for instance, could feed one person for a year.” Link.
For an example on the impact of rising corn prices on livestock, here are links to various articles on the situation. LInk. Here's another related story link.
In Mexico, the crisis over the price of corn-tortillas is only a portent of things to come if such trends continue. For more on the Mexican problem. Link.
Canada Expecting Higher Food Prices - Link
Corn Price increases affects on Dairy industry in California - Link

0 Comments:

Post a Comment

<< Home