Wheat Crisis Threatens Inflationary Time Bomb, Food Riots

Paul Joseph Watson
Prison Planet

Global food prices skyrocketing as a result of devastating weather conditions, hedge fund speculation

Russia’s ban on wheat exports following widespread fires in the country sent food prices skyrocketing by 19 per cent in just a single week as fears grow that global volatility in foodstuffs and commodities could lead to a worldwide inflationary timebomb accompanied by widespread food riots.

Lenin once called grain the “currency of currencies,” underscoring its importance in how it affects everything from staple foods such as bread to animal feed.

On Thursday Russian Prime Minister Vladimir Putin signed a decree prohibiting the export of wheat, barley, rye, corn and flour until the end of the year, contributing to a whopping 92 per cent rise in world wheat prices since June.

Persistent drought conditions across the Russian Federation are also threatening winter plantings, “With potentially serious implications for world wheat supplies in 2011/12,” according to the United Nations Food and Agriculture Organisation.

Food shortages as a result of freak weather conditions in other areas of the globe are also contributing to spiraling prices.