Last year the Eastcoast and Gulf states got off very easy. We hope for a repeat mild performance over the next few months.
Posted on 06/20/2008 10:50:14 PM PDT by TigerLikesRooster
Security fears over food and fuel crisis
By Carola Hoyos and Javier Blas in London
Published: June 20 2008 22:02 | Last updated: June 20 2008 22:02
Western countries have upgraded the food and fuel crisis into a national security concern as they fear record high energy and agriculture commodity costs are destabilising key developing regions of the world.
The concerns come as the world suffers for the first time since 1973 from the confluence of record oil and food prices. Corn, soyabean and meat prices jumped this week to all-time highs, while oil prices hit a record of almost $140 a barrel.
This shift toward a national security concern will become apparent at Sunday’s oil meeting in Jeddah, Saudi Arabia, where ministers are expected to warn that developing countries are cracking under the burden of record oil and food costs.
Saudi Arabia, the world’s largest oil producer and the only country able to raise output, has recognised the danger after developing countries, including US-ally Pakistan, pleaded for a reprieve from oil payments.
Morocco was forced last month to ask for an $800m loan from Saudi Arabia and United Arab Emirates to cushion the impact of oil and cereal imports.
One Washington official said: “What we have been watching is behaviour [that indicates] China, India, Indonesia, Vietnam [and] Malaysia simply can’t bare the burden on the central budget and that the medium to long-term confluence of oil and food prices is just too much.” He added: “It is leading to a real security issue where the streets are talking to the president.”
Martin Bartenstein, Austria’s economics minister who is travelling to Jeddah, said on Friday that the risk of social tension caused by high oil prices driving inflation to double digits will be a main tenet of his argument.
“It is very high on our agenda,” said a senior diplomat from a larger European nation.
Senior active and former US, European and United Nations officials said they had met US White House staff on the issue for briefings having been prompted in part by the unrest that toppled Haiti’s government and more recently after several Asian countries risked popular anger by cutting fuel subsidies.
Additional reporting by Daniel Dombey in Washington
Eventually it comes down to survival and all social contracts are null and void...
No offense. But how do you figure that? If people can't afford fuel or food that is a purely economic problem. If they riot about it it is the same thing.
The X factor in the equation is corrupt government slugs fouling up the works and the compliant idiots who follow them.
Whether government is corrupt or not, the same thing will happen. Only the corrupt ones precipitate it faster or more often.
To a degree you made my point. But without a willing populace the corrupt government doesn't exist.
Now, in a perfect storm we have:
Tanked the dollar, resulting in a huge increase in the input costs for agriculture.
Built up China and India to such an extent that they are demanding not only more oil, but higher quality food...thus driving up demand and prices. I heard a totally bizarre statistic on the radio just today. The INCREASE in demand for milk alone in the past year in China is equal to the entire State of Wisconsin's yearly production.
And, unrelated to both of the above, God decided to weigh in...flooding has damaged our State's corn crop (and this is true in many areas of the midwest as well); to the tune of 10-15% loss in yield. The wheat shortage this past year was caused by similar worldwide crop failures.
This situation will get much worse before it improves (if it does).
The curve either reverses direction at some point, or it doesn't. The situation could approach a population wipeout and total regression of society to dark-ages, but if it gets there, it will be easier to improve "from the bottom."
In other words, "if it doesn't" (improve -- ever), mankind is sliding downhill until it is extinct.
Actually, I think it will first spark another World War. Which may result in the population wipeout that you mentioned.
This shift toward a national security concern will become apparent at Sunday's oil meeting in Jeddah, Saudi Arabia, where ministers are expected to warn that developing countries are cracking under the burden of record oil and food costs. Saudi Arabia, the world's largest oil producer and the only country able to raise output, has recognised the danger after developing countries, including US-ally Pakistan, pleaded for a reprieve from oil payments. Morocco was forced last month to ask for an $800m loan from Saudi Arabia and United Arab Emirates to cushion the impact of oil and cereal imports.Huh. The UAE and the Saudis are bankrolling other Moslem states due to the record piles of cash they themselves have been unable to spend fast enough. I'm sure that wasn't the plan though, probably just a coincidence.\
Last year the Eastcoast and Gulf states got off very easy. We hope for a repeat mild performance over the next few months.
No doubt they will follow, hoping that they would set up the beach head for the ‘Muslim version’ of Reconquista.
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