The threat of rising food prices

This is as much a part of what’s wrong with our financial sector as the Greek and Irish debt crises.

While inertia continues to define the coalition government's approach to banking regulation, the bankers are happily enjoying yet another free-for-all spending splurge – and fears are emerging of a new bubble. This time, it's a commodity bubble, similar to the one that led to food riots around the world in 2007 and 2008.

In case you hadn't noticed, food prices are at an all-time high: the latest figures show food price inflation at 5.5 per cent, outpacing the overall inflation figure of 3.3 per cent. You'll be paying as much as 25 per cent more for your regular cuppa as tea prices rise; and we already saw the cost of our Christmas turkey go up by more than £3 before Christmas, due to the doubling in feed costs in 2010.

The Food and Agriculture Organisation's Food Price Index, released last week, shows that a range of basic food prices are actually higher than they were when food riots broke out in places like Mozambique, Egypt and Haiti just two years ago. In the first week of December, the benchmarked US wheat price reached $327 per tonne, which is a staggering 70 per cent higher than that for July 2010, just six months earlier.

Some market analysts would have us believe that it's a simple case of time-honoured supply and demand. But aren't these the same analysts who also said that mortgage derivatives were a good bet for investors? Market fetishists often fail to ignore the evidence as it suits them.

Although the long-term trends do point to a gradual rise in prices, due to a range of reasons from climate change and biofuel production to increasing consumption, basic supply and demand alone doesn't account for the high price volatility and huge changes being seen in recent months.

Price spikes of upwards of 70 per cent are being led by hedge funds, investment bankers and pension funds that have poured over $200bn into food markets since the financial crisis, betting on prices going ever higher. With few options to place your bets these days, and especially with the ready-made cash available through quantitative easing, food isn't a bad place to start – for the bankers, anyway.

A few extra pence for a loaf of bread doesn't seem like a lot to most of us, but the story is rather different if you're in a developing country, relying on imported staple foods just to get by.

Meanwhile, the replay of food riots began last week, with three people killed and 300 injured in disturbances that broke out in Algeria. For some of the poorest people in the world, as prices rise, education falls by the wayside; basic assets such as farm animals get sold, and a short-term crisis can lead to long-term chronic malnourishment for a generation.

Food isn't an asset like any other – it's fundamental to human life. Commodity markets exist to enable people to buy and sell food, but are now the best place for speculators to make a quick buck through murky "over-the-counter" trades and a self-fulfilling prophecy of ever-rising prices.

The story of food prices is as much a part of the picture of what's wrong with our financial sector as the Greek and Irish debt crises, or the obscene level of bankers' bonuses. The reality is that the same speculators who caused the global economic meltdown through their illustrious trade in sub-prime mortgages are now betting on our food system, too.

The issue has prompted the French president, Nicolas Sarkozy, to plan to raise the matter with Barack Obama later this week in Washington, as part of France's duties as leader of the G20.

So when the coalition government decides to ignore the evidence and turn a blind eye to regulating the banking sector, the result is inflation and ongoing volatility in financial markets, failing people far beyond our borders.

These markets need to be brought back under control, limiting excessive speculation, ensuring that markets are fully transparent, and not holding the rest of us to ransom through unnecessary and unscrupulous price rises.

Deborah Doane is director of the World Development Movement.

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Why I'll miss Sean Spicer, the tragic hero who couldn't cope with Trump

He was all of us when we have a sociopath for a boss.

From the first day he walked up to the White House press podium, in his ill fitting suit like an intern on his first day in the office, my heart went out to Sean Spicer. He did that classic thing you do when you have a very strong brief from your new boss and no idea what you're doing. He went completely overboard. Donald Trump’s inauguration crowd wasn't only huge, contrary to actual photo, video and eye witness reports, it was exceptionally huge. In fact, it was the biggest in history. Period!

We all had the same thought. This guy? This is who you pick to be White House press secretary? He crashed on to the scene all stutters and swivel eyes and redundant suit material. It was a fitting debut for the Trump’s administration.  

It was the start of a show that would give us Sean Spicer’s ABCs, a montage that poked fun at his tendency to mispronounce words and foreign leaders’ names. His greatest hits include saying "sometimes we can disagree with the facts". He brought on to the stage two piles of paper, one large and one small, pointing to the larger one as evidence of what "big government does", like he was on Sesame Street showing the kids the difference between BIG and SMALL. He said even "someone as despicable as Hitler didn’t sink to using chemical weapons". Just face palm, head-desk stuff everyday. His press briefings descended into laughter from the press and cries "oh come on Sean. Sean??" as he stormed off in the middle of a briefing.

But somehow, you couldn’t get mad at him. Or mad enough. Sean Spicer is that man who collapses late into the meeting he is supposed to be leading, sweating, nervous, spilt coffee down his tie and a distinct air of having stress-induced heartburn, before overcompensating for it by talking over everyone and throwing his weight around. More than anything, Spicer just seemed scared. His bursts of irritation and anger masking a deep seated sense of inadequacy probably much exacerbated by Trump reportedly chewing him out everytime he didn't come across as slick enough.  

Despite working for a dishonest and dissembling White House, Spicer never felt like the actual bully. He was the bullied. The kid who wanted in with the big boys and did their bidding but actually wasn't that bad inside so never did it with much effect. Indeed, he was all of us when we have a sociopath for a boss, a recent promotion, and a mortgage. All of us when just trying to get through the day when we don’t believe what we’re selling and are crippled by impostor syndrome. He was a tragic hero. Someone who just wanted to be taken seriously but somehow had missed out on all the genes that would enable that. The man who shoveled elephant excrement at the Big Top but stuck with it because he wanted to work in show business. A modern day clown who hated people laughing at him and cried after the show. And then there was Melissa McCarthy’s Saturday Night Live rendition which drove the final nail in the coffin of his hope to ever develop any gravitas. But it was as affectionate as it was brutal.

None of this excuses any of his complicity of course. I over embellish for effect. He went out there and lied day in and day out, but as his tenure went on, his suits got better, but one felt that he wasn’t coping. People who could work for Donald Trump and not have a nervous breakdown probably fall into two camps; those who agree with him and all his tactics, and those who don’t but are careerists. To be in the latter and be able to sleep at night requires a pretty high functioning ability to compartmentalise and, let’s be honest - kill your soul.

In a recent interview, Tom Ricks, the veteran journalist said:

"It's a crushing burden to be in political power in Washington these days, and you see people almost lose their souls. I think Sean Spicer, the president's spokesman in recent weeks has been pushed almost to the edge of a nervous breakdown from his public appearance. And he's kind of lost a big part of his soul, and I think that's true of some other people. And watching H.R. McMaster, an officer I do admire, over the last few weeks, I feel like I've seen him come out and give up a slice of his soul a few times. And I wonder how many more times he can do that before he just says I am becoming part of the problem, not part of the solution here."

That’s what it felt Spicer was doing everytime he came on. Giving up a slice of his soul. This might be a charitable explanation and he’s just really bad at his job. But when Sarah Huckabee Sanders began job sharing with him, it looked like her relative competence was less attributable to the fact that she was a better press secretary, and more that she was a soulless stone cold liar who felt no dissonance.

As Anthony Scaramucci came onto the podium to accept his position as White House Communications Director, the appointment that Spicer allegedly resigned over, it was clear that it could get a lot worse than Spicer. Scaramucci put on a sickening display where he said he "loved" and was "loyal" to the president about ten times, as Huckabee, now fully wearing the late Sean Spicer’s shoes as White House Press Secretary, looked on dead-eyed from the sidelines.

Sean Spicer still has a chance to completely blacken his name and lose any fondness he may have fostered by leaving the White House, joining the cable TV circuit  and continuing to shill for the Trump administration. This is a highly probably scenario. But until then, here’s to Sean Spicer. You were the best White House press secretary ever. Period!