Thursday, March 10, 2011

Economist Warns of Food-Price Riots in Britain

A senior economist at HSBC has warned that Britain could experience riots if food prices continue to soar in line with the cost of crude oil.

Karen Ward told Sky News that amid "very low" wage growth in the developed world, failing to compensate workers for recent rises in food and energy prices could provoke social unrest in the U.K.

We are not there, yet, but soaring food prices are on the way. Perhaps three to four months out, for both the U.S. and the U.K.

1 comment:

  1. Second try...

    I posted the other day that the unremarked statement from Germany's Merkel that Ireleand had to raise its corporate tax rate to get "in line" with the rest of the EU was important. No one asks whether the EU should lower their corporate rates to Ireland's level or better yet, lower all of the EU corporate rates.
    Thus, Pax Germanica, paupers all.

    If I may quote from a slightly different Economic Philosophy on this site:

    ""Most one-term Presidents only have time for one truly disastrous decision. Herbert Hoover squeezed in two. Having crimped international trade, he proceeded in 1932 to squeeze the domestic economy directly by pushing through Congress a measure to boost the income-tax rate back to 63% from 25% and piling on business taxes too."

    - Jude Wanniski, "The Crash of 1929"

    The Statists are in the driver's seat, the accelerator is pushed to the floorboard and the cliff is derectly ahead.