Reasons for soaring prices
-
22/04/2008
-
Daily Star (Bangladesh)
AND all nations came to Egypt to Joseph to buy grain because everywhere the famine was severe:" Genesis 41:57 The Old Testament. The World Bank chief, Robert Zoellick, recently said that the demand for ethanol, droughts in Australia and Europe, financial market speculation, and increased demand for food due to rising incomes in China and India, has significantly contributed to "soaring" food prices around the world. Certainly, government food bureaucrats in the EU or USA had taken into account all the factors that he mentions, and undertook all actions to mitigate any shortfalls in food production, particularly due to ethanol production, as they are far more alert, accountable, and resourceful in planning and procuring food than Third World bureaucrats in Haiti or Bangladesh. However, there are other reasons for the soaring prices apart from those Mr. Zoellick reveals. He has not blamed hoarding, as Bangladeshi experts persistently have, as a reason for high prices in Bangladesh. However, the "financial market speculation" that Zoellick cites has indeed crossed all boundaries due to inflationary policies of the Federal Reserve Bank of USA. Constantly falling in value is the "irredeemable" dollar, as the Fed prints more for reckless political spending and military adventurism. US Congressman Ron Paul recently said that "the greatest threat facing America today is not terrorism, or foreign economic competition, or illegal immigration