Food Crisis 2011 - Riots in Algeria

The Associated Press has reported that youth in Algeria had rioted on Thurs over rising food prices and high unemployment. This could be the first salvo in what may become a global food crisis in 2011 as developing countries cope with food inflation brought about, in my view, by the reckless money printing of various countries trying to devalue their respective currencies in order to export their way out of economic troubles. Chief amongst these is of course the US Federal Reserve and the People's Bank of China.

In India, food inflation for Dec 2010 was over 18% in a situation that is worsening, contrary to the expectations of government officials there.

In Singapore, the situation is also getting worse. Someone who runs a food stall at the canteen in my office building told me over lunch that food inflation is serious enough to have an impact on the stall's selection of food inputs and the type of dishes that can be sold profitably.

We need to get prepared. Remember to stock up on essential food items when there are cheap sales.