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The Cause Of Riots And The Price of Food

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  • The Cause Of Riots And The Price of Food

    http://www.technologyreview.com/blog/arxiv/27083/


    Marco Lagi and buddies at the New England Complex Systems Institute in Cambridge, say they've found a single factor that seems to trigger riots around the world.

    This single factor is the price of food. Lagi and co say that when it rises above a certain threshold, social unrest sweeps the planet.

    The evidence comes from two sources. The first is data gathered by the United Nations that plots the price of food against time, the so-called food price index of the Food and Agriculture Organisation of the UN. The second is the date of riots around the world, whatever their cause. Both these sources are plotted on the same graph above.

    This clearly seems to show that when the food price index rises above a certain threshold, the result is trouble around the world.

    This isn't rocket science. It stands to reason that people become desperate when food is unobtainable. It's often said that any society is three square meals from anarchy.

    But what's interesting about this analysis is that Lagi and co say that high food prices don't necessarily trigger riots themselves, they simply create the conditions in which social unrest can flourish. "These observations are consistent with a hypothesis that high global food prices are a precipitating condition for social unrest," say Lagi and co.

    ...Today, the food price index remains above the threshold but the long term trend is still below. But it is rising. Lagi and co say that if the trend continues, the index is likely to cross the threshold in August 2013.

  • #2
    Re: The Cause Of Riots And The Price of Food

    Originally posted by babbittd View Post

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    • #3
      Re: The Cause Of Riots And The Price of Food

      yeah yeah, "Twitter revolution" (ahem)

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      • #4
        Re: The Cause Of Riots And The Price of Food

        Apparently, the price of oil might drive the price of food and the world's GDP. At least, food prices/oil prices/GDP are all joined at their hips.

        So, might I ask a simple question: How is the world's economy, or even America's economy, going to be driven by windmills and solar panels as an energy plan; or are we all going to starve?

        While we kid ourselves and waste time and money on so-called, "green energy micro-solutions", China, India, Brazil, Mexico, Russia and the Persian Gulf states grow, blossom, and boom. They drill, they build mega-dams, they split atoms, they burn coal and natural gas, and they explore for more energy under the sea.
        Last edited by Starving Steve; August 15, 2011, 01:21 PM.

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        • #5
          Re: The Cause Of Riots And The Price of Food

          So does that mean China(at something like 50% of the average wage spent on food IIRC) will need to see considerable wage inflation in order to prevent Tiananmen 2.0?

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          • #6
            Re: The Cause Of Riots And The Price of Food

            Originally posted by lakedaemonian View Post
            So does that mean China(at something like 50% of the average wage spent on food IIRC) will need to see considerable wage inflation in order to prevent Tiananmen 2.0?
            China's GDP is growing at 8% per year, compounded year after year. Its cities are sparkling and new. Its manufacturing plants are new and modern. Its people are becoming rich.

            To view a glimpse of the new China, watch China Central Television on cable transponder 265 on the Dish Network. Even the commercials on CCTV would amaze you. For example, "New shipping hub in N.E. China!" and it shows the map of N.E. China with rays emerging from the new shipping hub. The commercial continues: "Reaching the world from N.E. China, the Port of Dandong!" And the commercial shows gigantic new cargo ships being loaded by cranes, and then it shows the gigantic new cargo ships sailing-off to reach-out to the world.

            And while the new shipping hub in N.E. China emerges out of nothing, instantly, and has to be announced to the world so that maps can be updated, what would we have here about building a new shipping port, maybe on San Francisco Bay? Maybe the following 20-years of delay and expense:

            Has the habitat of the rare and endangered San Francisco County field-mouse been addressed in the environmental impact statement? Has a proper carbon accounting been prepared for the E.P.A? Is our new shipping hub in compliance with zoning, urban growth regulations, air and water pollution considerations and state and federal laws? Have consultants reviewed the port's activities? Has a 100-year study of the port's impact been prepared? Has there been a neighbourhood review of the project? Would the hiring practices at this new shipping hub comply with state and federal laws? Do Greenpeace, the Sierra Club, and the World Wildlife Federation have any objections to the proposal? How many solar panels and windmills would the new port facility have to have to make the port carbon neutral? Have all of the bribes gone out to the Congress in Washington in order to make the project happen? Can we reach-out to the entire world, or might we be violating certain federal trade embargos? How many expediters do we have to bribe? Have we addressed salmon habitat preservation issues, and have the necessary studies required by the EPA been prepared? Has the Coastal Commission in California given their approval for the project, and how many bribes do we have to pay to them? Have native plants been protected, including the California golden poppy and poison oak? Would any aboriginal rights be violated by this proposed new shipping hub? Does the location of the port facility fit with existing transportation infrastructure? Has the Dept. of Transportation and the Dept. of Energy in Washington signed-off on this project? Has Nancy Pelosi given her approval to this project?
            Last edited by Starving Steve; August 15, 2011, 11:28 PM.

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            • #7
              Re: The Cause Of Riots And The Price of Food

              Originally posted by Starving Steve View Post
              China's GDP is growing at 8% per year, compounded year after year. Its cities are sparkling and new. Its manufacturing plants are new and modern. Its people are becoming rich.

              To view a glimpse of the new China, watch China Central Television on cable transponder 265 on the Dish Network. Even the commercials on CCTV would amaze you. For example, "New shipping hub in N.E. China!" and it shows the map of N.E. China with rays emerging from the new shipping hub. The commercial continues: "Reaching the world from N.E. China, the Port of Dandong!" And the commercial shows gigantic new cargo ships being loaded by cranes, and then it shows the gigantic new cargo ships sailing-off to reach-out to the world.

              And while the new shipping hub in N.E. China emerges out of nothing, instantly, and has to be announced to the world so that maps can be updated, what would we have here about building a new shipping port, maybe on San Francisco Bay? Maybe the following 20-years of delay and expense:

              Has the habitat of the rare and endangered San Francisco County field-mouse been addressed in the environmental impact statement? Has a proper carbon accounting been prepared for the E.P.A? Is our new shipping hub in compliance with zoning, urban growth regulations, air and water pollution considerations and state and federal laws? Have consultants reviewed the port's activities? Has a 100-year study of the port's impact been prepared? Has there been a neighbourhood review of the project? Would the hiring practices at this new shipping hub comply with state and federal laws? Do Greenpeace, the Sierra Club, and the World Wildlife Federation have any objections to the proposal? How many solar panels and windmills would the new port facility have to have to make the port carbon neutral? Have all of the bribes gone out to the Congress in Washington in order to make the project happen? Can we reach-out to the entire world, or might we be violating certain federal trade embargos? How many expediters do we have to bribe? Have we addressed salmon habitat preservation issues, and have the necessary studies required by the EPA been prepared? Has the Coastal Commission in California given their approval for the project, and how many bribes do we have to pay to them? Have native plants been protected, including the California golden poppy and poison oak? Would any aboriginal rights be violated by this proposed new shipping hub? Does the location of the port facility fit with existing transportation infrastructure? Has the Dept. of Transportation and the Dept. of Energy in Washington signed-off on this project? Has Nancy Pelosi given her approval to this project?
              so sad, and so true.

              Here in WA State, Boeing "spoke" to the legislature many times about many issues, always to a deaf ear. then corporate left for Chicago and all of a sudden everyone was all bent and besides themselves. I guess the execs got tired of dodging strikers and burn barrels every few years, and watching corporate taxes on GROSS sales bleed them. To build their plant in Everett, Wa they were "held up" for some $30 million plus in nuisance fees. That was the last plant in WA ever again. They said as much.

              Now they are gonna manufacture down south and the union is all bent that these will be non-union jobs. tough shyte -- the union controlled state of WA drove them to it. At least they built the plant in the US, I imagine after the stink they got from NRLB, the next plant will be in China, Taiwan, or somewhere else where they actually want jobs...

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              • #8
                Re: The Cause Of Riots And The Price of Food

                Originally posted by babbittd View Post

                There have been riots in France (2005) and Greece (2010-2011) during the timeframe of the chart. How come they are not shown?

                I checked the original source, according to the abstract the data analyzed is only for the middle east and north africa. So the conclusion is that riots in those parts of the world are closely correlated with food price.

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                • #9
                  Re: The Cause Of Riots And The Price of Food

                  Originally posted by unlucky View Post
                  There have been riots in France (2005) and Greece (2010-2011) during the timeframe of the chart. How come they are not shown?

                  I checked the original source, according to the abstract the data analyzed is only for the middle east and north africa. So the conclusion is that riots in those parts of the world are closely correlated with food price.
                  Thank you. I couldn't find it yesterday, can you post a link?

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                  • #10
                    Re: The Cause Of Riots And The Price of Food

                    Well, I don't know about any of you but when I review my monthly expenses, food is a "core" outlay. BLS can cut the "CPI core" any which way but food is core. End of story.

                    Let's not even get started on the Fed's PCE analysis.

                    From this morning's (8/16/11) Wal Mart calendar 2Q11 disclosure. US Wal Mart CEO on grocery inflation.

                    By the way, I am far from an expert on Wal Mart so take this as just one single comment from a public company C level employee on a puclic call. Not a ton of context here. That said, I have read that Wal Mart grocery sales represent ~20% of total US grocery sales.

                    "While we saw an increase in grocery inflation of approximately 3.5% during the quarter, customers remain under continued pressure and are trading down to lower price points and smaller pack sizes, as well as opting out of discretionary purchases. As a result, we are seeing minimal pass-through of inflation to sales.

                    Food inflation has replaced gasoline price as the most important household expense concern. In addition, more than 15% of Wal-Mart moms in our monthly survey have experienced the loss of a household wage earner's job in the last year. Almost 40% of these Wal-Mart moms indicate they are holding off or eliminating items they would normally buy, reinforcing the need for us to drive every day low price. Moms of all income levels showed a drop in confidence over the last year with middle income moms showing the greatest drop."

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                    • #11
                      Re: The Cause Of Riots And The Price of Food

                      Percent of income spent on food is the major factor. I'm sure there is a threshold of percent of income that can't be crossed. I wonder what inflationary factors may or may not have played in the England riots.

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                      • #12
                        Re: The Cause Of Riots And The Price of Food

                        Looks like England had the highest food inflation in Europe:

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                        • #13
                          Re: The Cause Of Riots And The Price of Food

                          impossible to predict. Impossible . . . it can't be done

                          Social unrest

                          Global tinderbox

                          2010 could be a year that sparks unrest

                          Dec 28th 2009

                          IF THE world appears to have escaped relatively unscathed by social unrest in 2009, despite suffering the worst recession since the 1930s, it might just prove the lull before the storm. Despite a tentative global recovery, for many people around the world economic and social conditions will continue to deteriorate in 2010. An estimated 60m people worldwide will lose their jobs. Poverty rates will continue to rise, with 200m people at risk of joining the ranks of those living on less than $2 a day. But poverty alone does not spark unrest—exaggerated income inequalities, poor governance, lack of social provision and ethnic tensions are all elements of the brew that foments unrest.



                          http://www.economist.com/node/15098974

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                          • #14
                            Re: The Cause Of Riots And The Price of Food

                            The yellow section in North Africa. Is that Libya?

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