Food price (cont)
I’m pleased to see increased coverage of, and political attention on, the food price crisis in the past couple of days. This article from the business section of The Guardian stands out for a different perspective. The article discusses the causes of the crisis and covers a report from nabCapital that maintains…
“…the sheer scale of the increases in food prices over the past 12 months would suggest that something else has been going on.
That “something else” is the precipitous decline in the value of the US dollar. Take a look at the accompanying charts (not shown on the website unfortunately), which show very strong correlations between commodity prices and the exchange rate for the greenback.”
It goes on.
“There is little to suggest that the dollar is going to strengthen, with the markets expecting further cuts in US interest rates and borrowing costs in the eurozone to remain steady.”
It seems logical but I’m no economist (thankfully) so here’s the full story for you to consider. <link>