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Monday, February 14, 2011

China affect on Food Prices

The drought in China may also increase the prices of food world wide.  Rises in food prices are a touchy subject in China, since they lead to popular unrest.  Many countries around the world are hoarding and subsidizing food to prevent unrest. And 40% of corn in the US is used for Ethanol.  All these are combining to raise the price of food even more.

U.N. Food Agency Issues Warning on China Drought - NY Times

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