Countries react to rising food prices

[myp]

Food prices have been rising globally, prompting many nations to take action through monetary tightening and other measures. Some nations have already experienced violent riots, including Tunisia where the President was forced to flee the country. Meanwhile, the Fed insists nothing is wrong here as food is too volatile a measure to be considered in inflation measures.

Go figure...

 

[DodgeFB]

Food prices have been rising globally, prompting many nations to take action through monetary tightening and other measures. Some nations have already experienced violent riots, including Tunisia where the President was forced to flee the country. Meanwhile, the Fed insists nothing is wrong here as food is too volatile a measure to be considered in inflation measures.

Go figure...

If you don't know what to do about a problem just take it off the "books". The day is coming when they will get to see how that silly notion is working for them. I think we have to stop hiding problems as well as stop putting off dealing with them. I can ignore my electric bill. But the night will come that I am in the dark.

 

[obtuseobserver]

Food prices have been rising globally, prompting many nations to take action through monetary tightening and other measures. Some nations have already experienced violent riots, including Tunisia where the President was forced to flee the country. Meanwhile, the Fed insists nothing is wrong here as food is too volatile a measure to be considered in inflation measures.

Go figure...

food prices are volatile... so is production

 

[DodgeFB]

food prices are volatile... so is production

Very true. And many times the weather is not cooperating. Not to mention how much good farmland we destroy yearly with shopping centers, roads, and cookie-cutter houses.

 

[obtuseobserver]

In the US there is no shortage of crop land. We still pay farmers not to grow.

 

[myp]

food prices are volatile... so is production

I'm not saying it isn't volatile (sorry if it came off as such). What I am saying is that volatility shouldn't be an excuse for not considering it in inflationary measures.

 

[obtuseobserver]

but it could well make considering it difficult

perhaps even to the point of producing absurd results from their models


regardless of volatility, our food supply is in no danger of price spikes that will lead to riots. the larger problem, of late, is converting food crops and food crop land to producing crops for bio-fuels. that problem is significant over seas where many states rely on imported food.

 

[myp]

but it could well make considering it difficult

perhaps even to the point of producing absurd results from their models

Some might argue that taking out the 2 things that everyone buys (food+energy) is what causes absurd results as is

regardless of volatility, our food supply is in no danger of price spikes that will lead to riots. the larger problem, of late, is converting food crops and food crop land to producing crops for bio-fuels. that problem is significant over seas where many states rely on imported food.

Our food supply isn't at risk right now and our imports are actually going up because of inflation elsewhere, which increases demand for our relatively cheaper food. That does not however mean that we won't see food price hikes because we almost certainly will in foods that we do not produce and import. That is where our monetary policy will have an effect for consumers and will hurt our wallets.

And food-->biofuels is just foolish the way we do it right now. Ah, the power of lobbying.

 

[obtuseobserver]

Some might argue that taking out the 2 things that everyone buys (food+energy) is what causes absurd results as is

one might

there's no debate that crop land and produce converted to biofuel production (with federal subsidies to do it) lead to higher food costs globally

Our food supply isn't at risk right now and our imports are actually going up because of inflation elsewhere, which increases demand for our relatively cheaper food. That does not however mean that we won't see food price hikes because we almost certainly will in foods that we do not produce and import. That is where our monetary policy will have an effect for consumers and will hurt our wallets.

It is a possibility but I don't see it happening. If prices for X Y or Z crop go up farmers will take fallow land out of hibernation and plant more crops because the value of the crops will be greater than the value of the subsidy not to grow. Tricky part is that the more who do that the higher the supply.... meaning lower price with static demand

 

[myp]

It is a possibility but I don't see it happening. If prices for X Y or Z crop go up farmers will take fallow land out of hibernation and plant more crops because the value of the crops will be greater than the value of the subsidy not to grow. Tricky part is that the more who do that the higher the supply.... meaning lower price with static demand

I think we have already seen it to some extent, although no where near as bad as other countries. Value deflation has effectively been used by many companies here in the States as a means of keeping prices the same, while reducing quantities sold.

Also, a relevant article which I ran across earlier today: http://www.zerohedge.com/article/fo...t-and-kellogg-hike-prices-selected-food-produ