Skip to main content

 On the day after the world's price of food hit an all-time high, violence erupted in the streets of Algiers.

ALGIERS, Algeria – Riots over rising food prices and chronic unemployment spiraled out from Algeria's capital on Thursday, with youths torching government buildings and shouting "Bring us Sugar!"

At no time since records have been kept has the cost of eating been so expensive. The last time prices were this high there were food riots in 32 nations, and that has some people worried.

 "We are entering danger territory," said the UN Food and Agriculture Organisation's chief economist, Abdolreza Abbassian.
  Global food prices have risen for the sixth month in succession. Wheat has almost doubled since June, sugar is at a 30-year high, and pork is up by a quarter since the beginning of 2010.

Image Hosted by

 So far there hasn't been widespread unrest, mostly because the cost of rice, the food of the world's poor, has lagged the rising price of other foods, such as cereals, oils, and sugars.
  But unless the world acts, and acts soon, unrest and violence will surely follow.
 Unlike in 2008, food prices are expected to remain high all year.

Image Hosted by

 If you haven't noticed the rising prices in your local grocery store, there is a reason for it: you aren't getting as much for your money.

 Household brands ranging from Ivory soap to Kraft cheese singles have seen their packages downsized up to 20% over the last few years - even though shoppers are paying just as much, according to a new study by Consumer Reports.

 It's a sneaky way of passing along the rising costs, and it may fool people for a little while, but not forever.
 The recent spat of good economic news was exactly what the producers and retailers were waiting for to pass along the cost of rising commodity prices.

 U.S. companies will welcome the opportunity to charge more because they have so far been absorbing higher input costs. The latest prices-paid indexes from the Institute for Supply Management increased in December.
  Indeed, businesses are already expecting to mark up their price lists this year. VF Corp., which makes Lee and Wrangler jeans, and Hanesbrands Inc. have said they will raise apparel prices in 2011 to offset higher cotton prices. A survey released last week by the Kansas City Fed showed that a rising number of regional manufacturers anticipate passing along higher costs to their customers.

Image Hosted by

 In the background of all this is high energy prices, where oil traders see $5 gasoline by 2012.
 The rising cost of everything tangible (except housing) is reflected in the general commodity prices.

Image Hosted by

 So what is causing all this price inflation? Competitive currency devaluation.

 When one country devalues its currency, others tend to follow suit. As a result, nobody achieves trade gains. Instead, the devaluations put upward pressure on the prices of commodities such as oil.

 It's the reason why you can't money print your way to prosperity. There is no free lunch.

Image Hosted by

Originally posted to gjohnsit on Thu Jan 06, 2011 at 10:54 AM PST.

Your Email has been sent.
You must add at least one tag to this diary before publishing it.

Add keywords that describe this diary. Separate multiple keywords with commas.
Tagging tips - Search For Tags - Browse For Tags


More Tagging tips:

A tag is a way to search for this diary. If someone is searching for "Barack Obama," is this a diary they'd be trying to find?

Use a person's full name, without any title. Senator Obama may become President Obama, and Michelle Obama might run for office.

If your diary covers an election or elected official, use election tags, which are generally the state abbreviation followed by the office. CA-01 is the first district House seat. CA-Sen covers both senate races. NY-GOV covers the New York governor's race.

Tags do not compound: that is, "education reform" is a completely different tag from "education". A tag like "reform" alone is probably not meaningful.

Consider if one or more of these tags fits your diary: Civil Rights, Community, Congress, Culture, Economy, Education, Elections, Energy, Environment, Health Care, International, Labor, Law, Media, Meta, National Security, Science, Transportation, or White House. If your diary is specific to a state, consider adding the state (California, Texas, etc). Keep in mind, though, that there are many wonderful and important diaries that don't fit in any of these tags. Don't worry if yours doesn't.

You can add a private note to this diary when hotlisting it:
Are you sure you want to remove this diary from your hotlist?
Are you sure you want to remove your recommendation? You can only recommend a diary once, so you will not be able to re-recommend it afterwards.
Rescue this diary, and add a note:
Are you sure you want to remove this diary from Rescue?
Choose where to republish this diary. The diary will be added to the queue for that group. Publish it from the queue to make it appear.

You must be a member of a group to use this feature.

Add a quick update to your diary without changing the diary itself:
Are you sure you want to remove this diary?
(The diary will be removed from the site and returned to your drafts for further editing.)
(The diary will be removed.)
Are you sure you want to save these changes to the published diary?

Comment Preferences

Meteor Blades, Sharoney, bink, Tookish, JekyllnHyde, Alumbrados, Angie in WA State, DeminNewJ, Alma, Marek, jec, tgs1952, northsylvania, fcvaguy, Odysseus, murphy, ogre, teacherken, Marie, laurak, Raybin, tiggers thotful spot, Powered Grace, saraswati, kainah, mattman, PeterHug, Bob Love, LBK, karlpk, tommurphy, krwada, Shockwave, Emocrat, tacet, Jay C, eeff, Mnemosyne, Pompatus, devtob, lzachary, object16, hubcap, RubDMC, scribe, Gustogirl, opinionated, bronte17, TracieLynn, wonkydonkey, Cassandra77, nyceve, Morague, CoolOnion, chuckvw, Porfiry, mkfarkus, barath, chimpy, taonow, oceanspray, Boston to Salem, oceanview, ctsteve, dejavu, Eric Blair, psnyder, Ryvr, danthrax, mwk, by foot, CitizenOfEarth, MKS, superscalar, ranger995, HeyMikey, laughingriver, NYFM, Chirons apprentice, On The Bus, nika7k, weasel, AbsurdEyes, lcrp, Pohjola, barbwires, Oaktown Girl, econlibVA, zerelda, ybruti, side pocket, Lefty Mama, Wife of Bath, poemworld, vacantlook, Mikecan1978, environmentalist, Big Tex, rapala, averageyoungman, Recovering Southern Baptist, bloomer 101, Bluesee, marina, radarlady, 3goldens, Tinfoil Hat, salmo, NoMoreLies, Jeffersonian Democrat, denise b, Ckntfld, UncleCharlie, m16eib, SherwoodB, pathman, Militarytracy, offred, gmoke, Flint, run around, truong son traveler, eightlivesleft, basquebob, Maine Atticus, Brooke In Seattle, YucatanMan, Laurence Lewis, reflectionsv37, eru, Mz Kleen, Chaoslillith, truebeliever, Sun Tzu, EdlinUser, jimreyn, where4art, GreyHawk, Kayakbiker, jane123, Sandino, kaliope, LucyandByron, Geekesque, Lisa Lockwood, deepsouthdoug, bunsk, Cory Bantic, Rogneid, peacestpete, mightymouse, kathny, Oye Sancho, xaxnar, Jim P, Born in NOLA, martini, karmacop, Patriot Daily News Clearinghouse, myboo, Clytemnestra, dharmafarmer, Kimball Cross, 8ackgr0und N015e, tonyahky, ActivistGuy, Dvalkure, The Wizard, Magnifico, carolita, Farradin, RockNAwe, triv33, StrayCat, Tanya, A Siegel, 4Freedom, gooderservice, imabluemerkin, real world chick, JVolvo, bleeding heart, joeshwingding, el cid, boatsie, tommyfocus2003, sceptical observer, AndyS In Colorado, myrealname, Dinclusin, CA Nana, profh, Persiflage, Clive all hat no horse Rodeo, Dianna, Stripe, Cassiodorus, Dreaming of Better Days, blueoregon, kurt, shaharazade, Statusquomustgo, kurious, Friend of the court, Temmoku, DBunn, seabos84, pale cold, bigchin, One Pissed Off Liberal, bear83, bluicebank, donnamarie, Haningchadus14, Mr K, california keefer, ninkasi23, Margfh, gtghawaii, edsbrooklyn, FishOutofWater, Mary Mike, daveygodigaditch, Jimdotz, terabytes, greenchiledem, ilex, Unbozo, Strabo, bnasley, artisan, BlueInKansas, bobswern, jnhobbs, millwood, Moderation, jhop7, Wreck Smurfy, Progressive Chick, ImpeachKingBushII, JML9999, keikekaze, cloudbustingkid, Assaf, Terra Mystica, rmonroe, JDWolverton, Blue Boy Red State, fayeforcure, revm3up, Edger, Justus, wayoutinthestix, elwior, ajr111240, treesrock, wvablue, jamess, mikeconwell, Calamity Jean, TokenLiberal, rubine, S C B, Horsefeathers, dmnyct, petulans, phrogge prince, Cardshark, bob zimway, numen, luckylizard, aigeanta, JamieG from Md, Robobagpiper, In her own Voice, papicek, squarewheel, 207wickedgood, wv voice of reason, Bule Betawi, smellybeast, aufklaerer, greengemini, Magick Maven, An Affirming Flame, cantelow, CanyonWren, Stranded Wind, dark daze, Gorilla in the room, Partisan Progressive, JesseCW, EquationDoc, John Shade, zaka1, JustJennifer, bfitzinAR, Alise, IreGyre, sfarkash, Houston Gardener, schnecke21, cassandraX, pyegar, politik, Garfnobl, renzo capetti, samanthab, ItsSimpleSimon, Puddytat, Kristina40, asm121, Earth Ling, albrt, Betty Pinson, Floande, USHomeopath, cocinero, science nerd, fiercefilms, slice, High Tide, Mike08, al ajnabee, Colorado is the Shiznit, allenjo, ozsea1, CaliKitty, Gracian, mateohussein, croyal, wildlife advocate, BlackQueen40, QuestionAuthority, Bluerall, Teiresias70, it really is that important, Greek Goddess, marleycat, Wolf10, Muskegon Critic, dle2GA, Wheever, CherryTheTart, worldlotus, Vtdblue, enhydra lutris, chira2, Crider, beforedawn, Marihilda, SteelerGrrl, Anthony Page aka SecondComing, Book of Hearts, Sunspots, DRo, Regina in a Sears Kit House, too young to give up, ArtemisBSG, No one gets out alive, James Philip Pratt, deltadoc, Sister Inspired Revolver of Freedom, Only Needs a Beat, 2dimeshift, orestes1963, Trotskyrepublican, Ginger1, Mr Robert, Th0rn, teabaggerssuckbalz, TheGrandWazoo, BusyinCA, marathon mom, Revy, lunachickie, MediaLuna

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site