More than we think here in the US. Here is what Egyptians are facing with their household finances.
In November, overall inflation in Egypt topped 8.58 percent for the year, its highest level in 19 months. But food inflation has been much more pronounced.My guess is the food-fuel debate is about to get much hotter. And any hint of trouble during planting season will not be helpful to the current ethanol pseudo-business model.
Fitch, in downgrading Egypt's outlook to negative today, specifically cited the high food inflation, which it said was running at about 17 percent a year. The main drivers of food inflation are meat and sugar. [More]
1 comment:
I think the food vs. fuel debate misses the point.
We're in a car, driving towards a cliff with the pedal to the metal - and we're arguing about what to put in the gas tank?
The discussion we need to be having is about our insane food production and distribution system that only works as long as we have an essentially limitless supply of cheap fossil fuel.
You and me John, we're old dogs, we're not going to be around when the food system collapses. I think our kids are in pretty good shape too. I don't hold out much hope for our grandkids though unless we start now.
Maybe our technology will save us and we'll figure out how to tap the sun or the tides or energy sources unimagined. Maybe there's a limitless supply of oil oozing from the earth. Maybe Sarah Palin is right about global warming.
I'm not willing to bet my grandkids future on any of those.
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