A significant spike in grain and commodities prices is driving up the cost of food worldwide and marking the beginning of the collapse of the world economy. As a result, violent riots have broken out, as described by Vivian Walt (Time, February 27, 2008)
Rocketing food prices — some of which have more than doubled in two years — have sparked riots in numerous countries recently. Millions are reeling from sticker shock and governments are scrambling to staunch a fast-moving crisis before it spins out of control. From Mexico to Pakistan, protests have turned violent. Rioters tore through three cities in the West African nation of Burkina Faso last month, burning government buildings and looting stores. Days later in Cameroon, a taxi drivers' strike over fuel prices mutated into a massive protest about food prices, leaving around 20 people dead.
Here in the U.S., the economic collapse has been "contained" to the housing market and a "few bad apples" (Bear Stearns) in the financial markets, but for how much longer? Will we see food riots at home?
So far, the riots have been largely in developing countries around the world. The Wall Street Journal reports today (hat tip to Bonddad) that the World Bank estimates that the cost of food has risen 83% over the last 3 years.
Here's a timeline of food riots since 2007:
January 2007 - Mexico riot over the increasing price of tortillas.
September 2007 - Indians in West Bengal riot over food shortages and public corruption.
February 2008 - Cameroons angry over high fuel and food prices.
February 2008 - Protesters in Burkina Fasso attacked government offices and burned, shops, cars and petrol stations.
Marchh 2008 - Senegalese citizens are beaten following protests against the high cost of living.
April 2008 - Haitians riot over rising food prices.
April 2008 - Yemenis riot as the price of wheat has doubled since February, while rice and vegetable oil have gone up 20%.
April 2008 - Egyptians riot over the price of bread.
Is the U.S.immune to the conditions that cause food riots? In March, Kossak bink documented soaring wheat prices, which are now showing up in price hikes at bakeries in Michigan, pizzerias in New York, and beer just about everywhere. Milk prices are up 26 percent and egg prices are up 40 percent.
But Americans are a tough lot. We swallowed $2 and $3 per gallon gas prices with nary a blink or change in our driving habitat (until very recently). But is something about to change? Nearly one in 10 Ohioans now receive food stamps. Middle class Long Islanders are turning to food pantries. In Windsor, CT, 350 households now visit the food bank, compared to 120 in 2006. While I don't believe food riots are in our immediate future, it appears our ability to feed ourselves is becoming increasing difficult, and a day of reckoning may now be on the horizon.