Thursday, April 17, 2008

Food shortage

Just saw this:
S Africans march over food prices on CNN.

"the protest would send out a message that the cost of living was too high." What messages? To who? This messages should be sent to their corrupted leaders, who turned many regions of Africa from the fertile lands just 10 years ago to this poor place. They must be kidding. No amount of protest will make production higher. The real actions should be look at what went wrong and fix it.

"Robert Zoellick, has called for immediate action to deal with rising food prices." So what's the action?
"Mr Zoellick called on governments to provide the United Nations World Food Programme with $500m in emergency aid by next month. "
Of course, more money. But wait, did we heard any nature disaster that caused food production to drop? Or the greedy store owners keep charging higher even when they know people won't be able to pay and will riot?

Nope. It is a nature disaster. It is all caused by man. The primary ones responsible are those corrupted rulers who disrupted the normal flow of market for their own gain, and reduced output dramatically.
The secondary cause, US is starting to raise the production of bio fuel, which makes less farm products available (which the report failed to mention). Supply and demand.

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