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article imageGlobal food and commodity prices spark worries on security

By Michael Krebs     Jan 16, 2011 in World
With spikes in food and energy commodity prices hitting developed and undeveloped nations, there are growing concerns over the prospects for widespread unrest.
The global food supply chain is stressed and appears to have been pushed to the boiling point, in terms of the social upheaval basic food price increases are likely to ignite - according to a report on MSNBC.
While developed nations like the US and Japan have been implementing fiscal policies to stave off deflationary pressures, the developing world has been experiencing sharp inflationary activity. And price increases in food staples have led to violent outbursts before.
Most recently, Tunisia's president was forced to flee the country after widespread discontent and riots drove him from office - due in large part to unacceptable food prices. The food price revolt looks likely to spread to Jordan, as the Los Angeles Times reported on Saturday.
"We are entering a danger territory," Abdolreza Abbassian, chief economist at the U.N.'s Food and Agriculture Organization (FAO), said last week, according to MSNBC.
One of the key underlying factors in food prices - beyond weather-related calamities - is the cost associated with transporting food from farms to tables. And there is growing concern that global oil prices will impact economies and further threaten the most basic commerce transactions.
According to a column in the UK's Daily Express, oil prices threaten to derail the English economy and have inspired a looming concern for the individuals who keep the UK's day to day operations moving efficiently - an editorial themed "alarm clock Britain."
"But what is the point in supporting people when they are emerging bleary-eyed from under their duvets if you are then going to kick them in the teeth when they go outside and get into the car," the Daily Express asks.
It appears to be a familiar question heard around the world.
More about Food, Commodities, Supply chain, Unrest
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