Friday, January 07, 2011
The UN Food and Agriculture Organisation or FAO is warning that food prices have risen sharply in December and are close to levels which resulted in riots 3 years ago. Prices of cooking oils, grains, sugar and meat have risen and will remain high throughout this year. Riots have not occurred yet because rice prices have remained relatively stable. Oil prices are predicted to reach $ 100 a barrel which will add to inflationary pressures and may cause severe problems in poor countries while inhibiting fragile growth in rich ones. Forest fires in Russia, floods in Pakistan and now in Australia have harmed wheat production while unprecedented severe winter in the west is pushing oil prices north. India's Home Minister who was the Finance Minister previously said yesterday, ".....Nor am I sure whether we have at our hand all the tools to control inflation." Chief Economic Advisor, Kaushik Basu agreed, ".... It is utter mistake to think that it is fully within the control of the government to move prices of food up or down." Truth at last. If the government is useless, as I have been saying all these years, then let us get rid of all criminal politicians and thieving civil servants altogether. This will save trillions of rupees, that these scum keep stealing, and distribute it to the people which will allow people to buy what they need. Also by getting rid of the predators people will be much safer as the rapists and murderers are swept into garbage bins where they belong. The only solution for the world is for poor countries to stop population growth and for rich countries to cut down on consumption. Perhaps uncontrolled growth, whether economic or human, is unsustainable.
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