Surging Food Prices are Causing Riots World Wide

In the US, we have seen a tremendous rise in food prices over the past year. The food commodity price index has risen 27% in the last year alone.

Food is also 80% more expensive than it was in 2005. You have all seen the increases at the grocery store. Prices rise, and package sizes shrink, or other corners are cut.

Now, raise your hands if you have gotten an 80% raise at work to cover this difference. What's that? No one is raising their hand? You are witnessing the beginning of the results of Bernanke's "Quantitative Easing". Make no mistake we haven't seen them all, or even the worst, but these commodity prices are the beginning.

For consumers in the US, this increase has been quite unpleasant, but for the most part we had the money to spare. Very few Americans have actually gone hungry as a result.

In the rest of the world things are worse. Few other countries possess the wealth that America does. So when they see their food prices skyrocket, it does mean that many people go hungry. Other countries have economies even less stable than the US, so they see more wild swings. India saw 18% food price inflation last month alone.

As a result, there are food riots occurring world wide. These riots haven't hit US shores yet. Our stubbornly high un-employment rate and steady inflation rate mean that it's only a matter of time unless our government changes course.