Food Price Rises Are Not Tolerated Long

depressionfood001Nothing creates more unrest than food prices. This video is not good news. It might also be added that central bank monetary policies are driving food prices higher than many incomes can afford. Quite simply, monetary policy is driving prices up but not wages.

Note that markets, when allowed to work, correct supply and demand imbalances. They are no longer working properly as a result of past and continuing interventions.

2 Comments

  1. Monty, a friend of mine made this point about this very topic recently. He pointed out that those on food stamps are largely immune to increased food prices because they are given such an allocation that it doesn’t really affect them that much, and as we all know, when one is spending someone else’s money, there is less concern for frugality. This affects those of us who are dumb enough to pull the wagon rather than jump in the wagon.

  2. It wouldn’t take a genius in Washington to realize a large increase in the supply of corn would be available if we simply stopped the ridiculous use of this precious commodity to dilute our refined petroleum products.
    Ethanol not only harms internal combustion engines (especially small ones) but also reduces their efficiency. Yet the geniuses who supposedly represent us not only continue this requirement, they intend to increase the percentage of corn required to be in each gallon of gasoline we buy.

    And another 85 people around the world starved to death while I typed this brief comment.

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