World moves closer to food price shock


The world has moved a step closer to a food price shock after the US government surprised traders by cutting stock forecasts for key crops, sending corn and soyabean prices to their highest level in 30 months.

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Food price hikes have already led to riots in Algeria and Mozambique.

Let’s see….…..
The state dominates most areas of the Algerian economy.
10.2% unemployed in 2009.
23% live below the poverty line.
99% Muslim

At independence in 1975, Mozambique was one of the world’s poorest countries. Socialist mismanagement and a brutal civil war from 1977-92 exacerbated the situation.
6th highest infant mortality rate on earth.
Average lifespan: 41 years.
21% unemployed in 2009.
70% live below the poverty line.

This country is a main drug line to Europe for South Asian hashish and heroin, and South American cocaine destined for the European and South African markets.

Corruption and poor regulatory capability makes the banking system vulnerable to money laundering, but the lack of a well-developed financial infrastructure limits the country’s utility as a money-laundering center.
So, from the way those two countries look, I’d predict MORE food riots in places like them: Muslim countries and drug haven countries.