The Hidden Agenda Behind Bush’s Biofuel Plan
By F. WILLIAM ENGDAHL
That bowl of Kellogg’s Cornflakes on the breakfast table, or the portion of pasta or corn tortillas, cheese or meat on the table is going to rise in price over the coming months as sure as the sun rises in the East. Welcome ladies and gentlemen to the new world food price shock, conveniently timed to accompany our current world oil price shock.
Curiously it’s ominously similar in many respects to the early 1970′s when prices for oil and food both exploded by several hundred percent in a matter of months. That mid-1970′s price explosion led President Nixon to ask his old pal, Arthur Burns, then Chairman of the Fed, to find a way to alter the CPI inflation data to take attention away from the rising prices. The result then was the now-commonplace publication of the absurd “core inflation” CPI numbers–sans oil and food. Stephen Roche was the young Fed economist who was assigned the statistical manipulation job by Burns.
The late American satirist, Mark Twain once quipped, “Buy land: They’ve stopped making it” Today we can say almost the same about corn or all grains worldwide. The world is in the early months of the greatest sustained rise in grain prices, for all major grains including FULL ARTICLE AT COUNTERPUNCH