[Peakoil] Food vs fuel wars just beginning

[Antony Barry]

Food vs fuel wars just beginning

Source: China Daily

"As everyone in China knows, food prices have risen sharply over the  
past year. China is not the only country. Rising food prices are a  
worldwide phenomenon. There is direct competition between the 800  
million people who own automobiles and the world's poorest 2 billion.  
Basically there is now a link between the food industry and the  
energy industry. When the market sees that it is more profitable to  
produce ethanol than sell the grain for food, the food industry will  
be in trouble.

Since ethanol is used as a fuel, its price will be tied to the price  
of oil. As oil prices climb because of the impending world shortage  
of oil, ethanol prices will rise. As a consequence food prices will  
rise as well. It does not take a leap of imagination to see that  
continuing down the path of corn for fuel will lead to worldwide  
famine affecting billions of people. This will certainly lead to  
political instability, social unrest and general chaos."

Full article: http://www.chinadaily.com.cn/bizchina/2007-07/06/ 
content_912170.htm

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