Inflation Is Causing Chaos In The Food Supply

Bread Supply - Photo by Ayanfe Olarinde on Unsplash

Iran protests spread as demonstrators demand change and cheaper food – Fox News

Across the Arab world, Africa, Latin America and soon to be elsewhere a food problem is brewing. As the inflation sparked by the Fed and exacerbated by the ECB and other central banks around the world takes hold it causes destabilization, rebellion, and revolution in different countries.

The problems caused by the aggressive dilution of the dollar, euro, and other currencies to counter the perceived threat of Covid-19 got even more severe when Russia, Belarus, and Ukraine were cut out of the supply equation.

Russia and Belarus accounted for over 40% of the world’s fertilizer production. Which is a key part of farmers being able to keep up with the crop demand needed to feed the world. On top of that Ukraine supplied almost 24% of the world’s wheat and bread grain. Including most of what was going to the middle east. (The main ingredient of the diet of the Arab world.)

Just today India, which is worried about their own supply, banned exports of wheat. Cue the making of worldwide rebellions.

Soaring bread prices in Iran have triggered protests, with some shops being set on fire. The government has cut subsidies for imported wheat, causing price hikes of up to 300 percent.

There were scattered protests in a number of cities in Iran on Thursday, in which crowds chanted slogans against price rises and shops were set on fire. Security forces dispersed the protesters and arrested 22 people.

Iranian media reported last week that internet services had been disrupted in an apparent attempt to stop protesters from using social media to organize rallies and distribute videos.

Imran Kahn, former PM of Pakistan, was just ousted in April filing wide spread protests over soaring food inflation and a general lack of opportunity to keep up with costs of living in his home country.

This year more than any other could see major unrest as the food supply situation becomes even less certain. Price increases as high as 250% are hitting the African continent and word is that the supplies moving to Europe and America could soon tighten up as well.

 

For more on the protests in Iran consider these sources:

John Nightbridge is a veteran reporter, researcher, and economic policy major from UCLA. Passionate about world issues and potential ways to solve them is a significant focus of his work. Writing freelance and reading the news are John's passions at work. Outside of work, it's all about sky diving, surfing, and stock market modeling.