Iceberg

I see that my contention that food prices will rise because of ethanol production is not all hot air, it's starting to be seen.<br />n<br />n<a href="http://hosted.ap.org/dynamic/stories/M/MEXICO_EXPENSIVE_TORTILLAS?SITE=MTBIL&SECTION=BUSINESS&TEMPLATE=DEFAULT">Mexicans cope with rising tortilla price</a><br />n<br />n<blockquote>Soaring international demand for corn has caused a spike in prices for Mexico's humble tortilla, hitting the poor and forcing President Felipe Calderon's business-friendly government into an uncomfortable confrontation with powerful monopolies.<br />n<br />nTortilla prices jumped nearly 14 percent over the past year, a move Mexico's Central Bank Gov. Guillermo Ortiz called "unjustifiable" in a country where inflation ran about 4 percent. Ortiz pinned the blame on companies monopolizing the market and blocking competition.<br />n<br />n"We clearly have a problem of speculation," he said.<br />n<br />nThe government and economists also blame increased U.S. production of ethanol from corn as an alternative to oil.</blockquote><br />n<br />nNow they can throw the blame on companies all they want, there might be a factor there too, but with corn prices as high as they are is it any wonder that tortilla prices are up?<br />n<br />n<blockquote>The U.S. Agriculture Department said Friday that ethanol plants and foreign buyers are gobbling U.S. corn supplies, pushing prices as high as $3.40 a bushel, the highest in more than a decade.<br />n<br />nNationwide in the United States, supplies of corn are expected to drop to 752 million bushels, a drop from last month's forecast of 935 million bushels and a steep decline from last year's supply of 1.967 billion bushels.</blockquote><br />n<br />nIs it so hard to believe that higher corn prices might be the cause of tortilla prices rising? Not for me. Why are corn prices rising? The largest reason for the price increase is ethanol demand. I think we are starting to see the tip of the iceberg here. The rising price of food iceberg that ethanol is going to cause. Hope everyone enjoys the ride.<br />n<br />n<strong>These are just the tip of the iceberg, because I read and read and read. I read everything. Jack Vance</strong>