A Punch to the Mouth – Food Price Volatility Hits the World

January 9, 2012 • Farming Practices, Daily Email Recap

Please see this posting on the financial blog Zero Hedge, originally authored by Gregor Macdonald, contributing editor at ChrisMartenson.com. The article, while focusing on food inflation, touches on many aspects of the human predicament. Satellite pictures near the bottom are especially impressive: http://www.zerohedge.com/news/guest-post-punch-mouth-food-price-volatility-hits-world

A Punch to the Mouth: Food Price Volatility Hits the World

Perfect Storms

2011 was an abysmal year for the global insurance industry, which had to cover yet another enormous increase in damages from natural disasters. Unknown to most casual observers is the fact that during the past few decades the frequency of weather-related disasters (floods, fires, storms) has been growing at a much faster pace than geological disasters (such as earthquakes). This spread between the two types of insurable losses has moved so strongly that it prompted Munich Re to note in a late 2010 letter that weather-related disasters due to wind have doubled and flooding events have tripled in frequency since 1980. The world now has to contend with a much higher degree of risk from weather and climate volatility, and this has broad-reaching implications.

And critically, it has a particular impact on food.

Many factors seen over the past decade have produced higher food prices: population growth, urbanization, the decline of arable land per person, and the upgrading of diets for example. But more damaging than food inflation has been the pushing of global food prices out of their long, quiet envelope of stability.

To read the full article, please click here: http://www.zerohedge.com/news/guest-post-punch-mouth-food-price-volatility-hits-world

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