How the Food and Financial Crises are Interconnected

[ensho]

http://counterpunch.com/toussaint10292008.html


The Global Meltdown


-snip-

In 2007-2008, the standard of living of more than half of the world population dropped dramatically when the price of food soared. There were massive demonstrations in at least fifteen countries in the first half of 2008. Tens of millions of people more than before faced hunger, and hundreds of millions had to reduce their food consumption (and consequently, their access to other essential goods and services<3>).

All of this was the result of decisions made by a handful of companies in the agro-industry and the financial sector (the institutional investors who contribute to doping the prices of agricultural products) with the backup of the US administration and the European Commission<4>. In fact, the percentage of exports in the world production of food remains small. Only a small part of the rice, wheat or corn produced in the world is exported, while by far the greater amount is consumed in the country of production. However, the price on the export market determines the price on the local market. The export market price is fixed in the United States, mainly in three stock exchanges (Chicago, Minneapolis and Kansas City). Consequently, the price of rice, wheat or corn in Timbuctu, Mexico, Nairobi, and Islamabad is directly affected by the evolution of the prices of these cereals on the United States stock markets.

-snip-

The climate crisis. The effects of climate change have temporarily disappeared from the headlines, supplanted by the financial crisis. Nevertheless, the process is underway on a global scale and here too, interdependency is obvious. Indeed the populations of the "poor" countries will be much more affected than those of the "rich" countries, but no one will come out of it unscathed.

The convergence of these three crises shows populations the need to free themselves from capitalist society and its productivist model. The interdependency of capitalist crises highlights the need for an anti-capitalist and revolutionary programme on global scale. Only international and systemic solutions can make for a favorable outcome for the populations and the environment. Humanity cannot be fobbed off with half measures.
-----------------------


needed - freedom from the criminal neo cons