World Food Bank warns of Rising Food Prices

Along the line of my theme of the day, which is an inflation outbreak around the globe, comes this story originating with comments by World Bank President Robert Zoellick about the dangerous political and social effects arising from the increase in the basics of life.

I do find it rather remarkable that among the reasons he cited for the hefty increase, he conveniently omitted the effect of Federal Reserve monetary policy and its link to speculative demand for some of these very same commodities. While it certainly is not the sole cause, it is certainly among the causes and no objective view of this phenomenon should be excluding it.

Food Prices at Dangerous Levels: World Bank Chief

World Bank chief Robert Zoellick Tuesday said global food prices have reached dangerous levels that could complicate fragile political and social conditions in the Middle East, and warned that their impact also bears watching across Central Asia.

World Bank data released Tuesday showed higher food prices has pushed 44 million more people into extreme poverty since June 2010 in developing countries.

Zoellick said although higher food prices were not the main reason that led to violent protests in Egypt and Tunisia, it was an aggravating factor and could become worse.

You can read the main story here:

http://www.cnbc.com/id/41599988?par=RSS