The World Bank and Rising Food Prices

world bank

A recent World Bank report warned of rising global food prices as if a study (no doubt an expensive one) is needed to explain what everyone who buys food or, for that matter, any commodity, is keenly aware of. “Food price shock,” the report cautioned, “can both spark and exacerbate conflict and political instability, and it is vital to promote polices that work to mitigate these effects.”

Naturally, the report fails to explain the real reason for increases in food prices. Like the lies, distortions, and half truths which used to emanate from the Soviet news agency, Pravda, the World Bank report misleads its readers citing “increasing weather concerns,” “import demand” pressure from China, and “geopolitical tension in the Ukraine” for the escalating food costs.

All of this, of course, is nonsense spoken to bamboozle the public and the naïve financial press who will swallow just about anything that a governmental authority shovels out.

The fundamental reason for skyrocketing food prices is the massive amount of money which has been issued since the start of the financial crisis by the likes of the World Bank, IMF, the Fed, Bank of England, and the ECB.

Not surprisingly, the report contradicts itself. Despite the reasons that it gives for the sharp rise in food prices, it admits that the supply of food worldwide is at an all time high: “. . . prices increased despite bumper crops in 2013 and continued projections of record grain harvests and stronger stocks expected for 2014.” It added that even the political turmoil in the Ukraine “have not disrupted exports so far.”

So, if supply is at record levels and demand has increased only significantly in China, what accounts for the massive price hikes across the globe? Simple: money creation.

The report, and others like it, speak of the devastating effect that high food prices have on the poor and impoverished. Instead of pointing the finger at themselves or the other international inflation generating agencies, the World Bank has in the past called for income redistribution which never help the poor, but just line the pockets of politicians and enlarge the balance sheets of the banksters.

Without the unprecedented money creation of the past half dozen years, food prices would have fallen. Instead, the trillions printed have done inestimable harm to the world’s economies while the banking and financial sectors have seen record “profits.”

If the World Bank was truly concerned about the impact of higher food prices, it would immediately fold up shop, call for the liquidation of all central banks and advocate a return to honest money based on a commodity be it gold or silver. Moreover, any bank or financial institution that did not maintain a reserve requirement of 100% would be shut down, charged with fraud and embezzlement while its perpetrators would be rounded up either scourged, tarred and feathered, or, at the very least, face a life time of hard manual labor.

Such measures are more than justified after what has taken place over the past decade and all of the mischief and ruination banks have committed throughout history. These or any other meaningful punishments will also act as a deterrent to anyone contemplating such nefarious activity in the future.

The solution to rising food prices is straight forward, however, its implementation is the problem. To achieve a sound monetary order, public opinion must be shown and then persuaded that the cause of most of the current financial difficulties stem from central and fractional-reserve banking practices. Until a majority is convinced of this evil, things will most likely not turn around.

Unfortunately, until food prices go a lot higher, or there is another crisis or general collapse, no significant alteration of the present fiat monetary system will take place. Nor can it be assumed that as things get worse, a “new system” or a “reform” of the present one will be necessarily better. Under the current statist ideological conditions, it will more than likely be a lot worse.

In sum, erroneous World Bank reports on escalating food prices will continue to be released.

Antonius Aquinas@AntoniusAquinas

One thought on “The World Bank and Rising Food Prices

  1. John Carp

    Antonius,

    Great analysis!. I wish the people at FOX Business and CNBC would get you on after one of their phoney baloney analysis on the economy, jobs, negative GDP growth whatever. They are actually bragging about car sales increasing in spite of all the defects that GM caused resulting in fatal deaths! I’m glad Obama saved GM. Just a matter of time before he saves the world bank!……. I’m going to invent a board game like monopoly called “The Fed”. It will have a free bail out the banks QE card. All properties will be worth the same, railroad companies will be run by the World Bank. This simple board game will only cost $1,087. If you like your old monopoly game, you can keep it.

    John Carp
    Scottsdale AZ

    Reply

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