Quantitative Easing and Rising Food Prices

In my last post, I wrote about the effects of global monetary stimulus on stock prices. Along the same lines of argument, it can also be argued that in addition to poor harvests, rising food prices can also be partly attributed to the pools of liquidity sloshing around the globe looking for higher returns. And in fact, a hedge fund manager has made this particular argument, as seen in the blog article enclosed below:

Auerback: You Can Thank Ben Bernanke for Higher Food Prices

From an end-user perspective, it of course sucks that food prices are going higher, irrespective of the causes. But what we can't change, we adapt to by taking defensive measures such as food storage, eating out less etc.