FEDS Actions Cause Ripple Effect Boosting Food Prices
7 05 2008Here is an interesting article about the Fed Reserves actions to reduce interest rates to stave off a subprime credit crisis only to find out that we are facing rising inflationary prices for our basic commodities. The FED’s reduction in interest rates has speculators looking in other areas, mainly the basic food commodities such as rice, wheat, corn etc. The weak dollar has only exacerbated the rising food prices. Countries are now facing food shortages, some Asian countries have restricted exports. Who would ever have thought the the subprime fiasco could be a contributor to world wide food shortages. When will it all end??
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