That's the argument put forth by Kevin Hall of the McClatchy Newspapers. Food prices probably have had an influence on the unrest in Egypt; they've also affected events in Jordan, Algeria and Tunisia. Even the rising giants, India and China, seem to be concerned about food prices. The FAO recorded peak prices in its index of basic food prices of December. The UN has issued warnings about the issue.
The weather has been a factor in the rising prices. More people are leaving the developing world and want what developed nations have, including food. It's also likely that the Fed's quantitative easing policy has had an effect. The policy tends to raise asset prices, no matter what kind of assets we're talking about, including food stocks. Since Bernanke announced the policy in August, prices of basic food have increased quite a bit: corn 53%, soybeans 37%, wheat 24%.
The weather has been a factor in the rising prices. More people are leaving the developing world and want what developed nations have, including food. It's also likely that the Fed's quantitative easing policy has had an effect. The policy tends to raise asset prices, no matter what kind of assets we're talking about, including food stocks. Since Bernanke announced the policy in August, prices of basic food have increased quite a bit: corn 53%, soybeans 37%, wheat 24%.
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