Sunday, April 27, 2008

Rice Doubled in Price

I've been hearing on the news over the last few months about the food crisis throughout the world, in particular rice, wheat and corn. Our family eats quite a bit of Thai Jasmine rice and the last time we bought a 25 pound bag of this rice (not the broken rice, this is the only image I could find) we paid about $15. Today we paid $30!! We have finally felt the bite of this food crisis - no pun intended, and although it was not unaffordable to the point where we would not buy it, it was certainly a shock.
It's no wonder people buy rice and hoard it. That's sort of what we did. We still have half a bag when we bought our new rice today. But we were in Chinatown, where it's less expensive and we thought we'd buy it since we were there. Makes me wonder what the price will be next month!


Ivo Cerckel said...

“Thai” Jasmine rice, says you?

There is no shortage of (Thai Jasmine) rice.
There’s enough rice to feed everybody.

The problem is that on international markets,
(Thai) rice is being traded for worthless US dollars
Therefore, its price is going out of hand.

Although (or because?) its price is going out of hand in worthless US dollar,
Thailand says that the US dollar price of rice is too low.

April 26, 2008 18:34 PM
Thailand Wants Opec-like Cartel For Rice
By D.Arul Rajoo
BANGKOK, April 26 (Bernama) — With the rice price soaring in tandem with the skyrocketing oil price, Thailand’s largest enterprise has call on the government to form an Opec-like alliance on rice TO ELEVATE ITS PRICE.
We can’t control the oil prices, so why do we have to fix domestic produce prices. We must allow prices of agricultural products to rise and therefore raise overall salaries of public sector officials accordingly,” said the head of the country’s biggest agro-industry conglomerate.

The mainstream media prevent us from thinking in a logical way.

If you want to think, you must start with the facts
which you must analyze.
And on these facts you can try to apply your ideas
(but this presupposes that you have ideas).

You must not start with your ideas
and then distort the facts
in such a way that they suit your ideas.

The price of rice is at present going out of hand
because on international markets, rice is being traded for worthless US dollars.

Thailand wants to allow the US dollar prices of agricultural products to get even more out of hand.

This will only speed up the dollar’s demise.

Can you spell “dollar-induced famine”?

The US has been gaming the system for decades; sucking up two-thirds of the world's capital to expand its cache of Cadillac Escalades and flat-screen TVs; giving nothing back in return except mortgage-backed junk, cluster bombs, and crummy green paper. Nothing changes; it only gets worse. But this is different. The world is now facing the very real prospect of "completely avoidable" famine because twelve doddering old banksters at the Federal Reserve would rather bailout their sketchy friends and preserve their spot at the top of the economic food-chain then save the lives of starving women and children. Bernanke now has an opportunity to do more damage than Bush with one swipe of the pen. If he cut rates; the dollar will fall, commodities will spike, and people will starve. It's as simple as that.
(US Fed To Blame for Global Food Crisis Apr 26, 2008 - 03:09 PM By: Mike_Whitney

Henry Hazlitt, 1946
The art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups.

By pricing rice on international markets in gold,
the rice price crisis will disappear.

Ivo Cerckel

Amy said...

Interesting article, Ivo. Thanks for leaving your comment. At any rate, I made a post simply that we paid double, that was my point. The weakening dollar and higher fuel costs are what is adding to the skyrocketing prices of food, not necessarily food shortage. Thank you for clearing that up, but do keep in mind that I'm not an economist :)