Food insecurity has become a major global issue in recent years, underlying many of the instances of social upheaval around the world. This is both a reflection of the short-term fluctuations in an over-financialised commodity sector and also of the longer-term limits to growth scenario. As an ever greater number of limits are approached, a confluence of factors capable of compounding each other’s impact is created, and this can rapidly reach boiling point.
The commodity food price index has risen relentlessly, for a decade, peaking in periods of increasing fear and financial uncertainty. As we are rapidly approaching another such juncture, we can expect the issue to reassert itself with even greater force. Considering that the index demonstrates increasing food prices in nominal terms only, and does not reflect the additional factor of worsening affordability in real terms, it represents a substantial underestimate of the actual situation. Continue reading “Finance and Food Insecurity”