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Food Rationing Confronts Breadbasket of
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BY JOSH GERSTEIN - Staff Reporter of the Sun
April
21, 2008
URL: http://www2.nysun.com/article/74994
MOUNTAIN VIEW, Calif. —
Many parts of America, long considered the breadbasket of the world, are now confronting a once unthinkable phenomenon: food rationing. Major retailers in New York, in areas of New England, and on the West Coast are limiting purchases of flour, rice, and cooking oil as demand outstrips supply.
There are also anecdotal reports that some consumers are hoarding grain stocks. At a Costco Warehouse in Mountain View, Calif., yesterday, shoppers grew frustrated and occasionally uttered expletives as they searched in vain for the large sacks of rice they usually buy.
"Where's the rice?" an engineer from Palo Alto, Calif., Yajun Liu, said. "You should be able to buy something like rice. This is ridiculous."The bustling store in the heart of Silicon Valley usually sells four or five varieties of rice to a clientele largely of Asian immigrants, but only about half a pallet of Indian-grown Basmati rice was left in stock.
A 20-pound bag was selling for $15.99."You can't eat this every day. It's too heavy," a health care executive from Palo Alto, Sharad Patel, grumbled as his son loaded two sacks of the Basmati into a shopping cart. "We only need one bag but I'm getting two in case a neighbor or a friend needs it," the elder man said.The Patels seemed headed for disappointment, as most Costco members were being allowed to buy only one bag. Moments earlier, a clerk dropped two sacks back on the stack after taking them from another customer who tried to exceed the one-bag cap.
"Due to the limited availability of rice, we are limiting rice purchases based on your prior purchasing history," a sign above the dwindling supply said.Shoppers said the limits had been in place for a few days, and that rice supplies had been spotty for a few weeks.
A store manager referred questions to officials at Costco headquarters near Seattle, who did not return calls or e-mail messages yesterday.An employee at the Costco store in Queens said there were no restrictions on rice buying, but limits were being imposed on purchases of oil and flour. Internet postings attributed some of the shortage at the retail level to bakery owners who flocked to warehouse stores when the price of flour from commercial suppliers doubled.
The curbs and shortages are being tracked with concern by survivalists who view the phenomenon as a harbinger of more serious trouble to come."It's sporadic. It's not every store, but it's becoming more commonplace," the editor of SurvivalBlog.com, James Rawles, said.
"The number of reports I've been getting from readers who have seen signs posted with limits has increased almost exponentially, I'd say in the last three to five weeks."Spiking food prices have led to riots in recent weeks in Haiti, Indonesia, and several African nations. India recently banned export of all but the highest quality rice, and Vietnam blocked the signing of a new contract for foreign rice sales."I'm surprised the Bush administration hasn't slapped export controls on wheat," Mr. Rawles said. "The Asian countries are here buying every kind of wheat."
Mr. Rawles said it is hard to know how much of the shortages are due to lagging supply and how much is caused by consumers hedging against future price hikes or a total lack of product."There have been so many stories about worldwide shortages that it encourages people to stock up. What most people don't realize is that supply chains have changed, so inventories are very short," Mr. Rawles, a former Army intelligence officer, said.
"Even if people increased their purchasing by 20%, all the store shelves would be wiped out.
"At the moment, large chain retailers seem more prone to shortages and limits than do smaller chains and mom-and-pop stores, perhaps because store managers at the larger companies have less discretion to increase prices locally
Mr. Rawles said the spot shortages seemed to be most frequent in the Northeast and all the way along the West Coast. He said he had heard reports of buying limits at Sam's Club warehouses, which are owned by Wal-Mart Stores, but a spokesman for the company, Kory Lundberg, said he was not aware of any shortages or limits.An anonymous high-tech professional writing on an investment Web site, Seeking Alpha, said he recently bought 10 50-pound bags of rice at Costco.
"I am concerned that when the news of rice shortage spreads, there will be panic buying and the shelves will be empty in no time. I do not intend to cause a panic, and I am not speculating on rice to make profit. I am just hoarding some for my own consumption," he wrote.For now, rice is available at Asian markets in California, though consumers have fewer choices when buying the largest bags. "At our neighborhood store, it's very expensive, more than $30" for a 25-pound bag, a housewife from Mountain View, Theresa Esquerra, said. "I'm not going to pay $30. Maybe we'll just eat bread."
FURTHER, IN OTHER PARTS OF THE WORLD:
By Marc Lacey in Port-au-Prince, Haiti
HUNGER smashed in the front gate of Haiti's presidential palace. Hunger poured on to the streets, burning tyres and taking on soldiers and the police. Hunger sent the country's prime minister packing.
Haiti's hunger, that has become fiercer than ever in
recent days as global food prices spiral out of reach, rising by as much as 45%
since the end of 2006 and turning staples such as beans, corn and rice into
closely guarded treasures.
Saint Louis Meriska's children ate two
spoonfuls of rice apiece as their only meal and then went without any food the
following day. His eyes downcast, his own stomach empty, the unemployed father
said: "They look at me and say 'Papa, I'm hungry', and I have to look away. It's
humiliating and it makes you angry."
That anger is palpable across the
globe. The food crisis is not only being felt among the poor but is also eroding
the gains of the working and middle classes, sowing volatile levels of
discontent and putting new pressures on fragile governments.
In Cairo,
Egypt, the military is being put to work baking bread as rising food prices
threaten to become the spark that ignites wider anger at a repressive
government. In Burkina Faso and other parts of sub-Saharan Africa, food riots
are breaking out as never before. In reasonably prosperous Malaysia, the ruling
coalition was nearly ousted by voters who cited food and fuel price increases as
their main concerns.
"It's the worst crisis of its kind in more than 30
years," said Jeffrey D Sachs, the economist and special adviser to the UN
secretary-general, Ban Ki-moon. "It's a big deal and it's obviously threatening
a lot of governments. There are a number of governments on the ropes, and I
think there's more political fallout to come."
Indeed, as it hits
developing nations, the spike in commodity prices has pitted the world's poorer
south against the relatively wealthy north, adding to demands for reform of rich
nations' farm and environmental policies. But experts say there are few quick
fixes to a crisis tied to so many factors, from strong demand for food from
emerging economies such as China's to rising oil prices to the diversion of food
resources to make biofuels.
There are no scripts on how to handle the
crisis either. In Asia, governments are putting in place measures to limit
hoarding of rice after some shoppers panicked at price increases and bought up
everything they could.
Even in Thailand, which produces 10 million more
tons of rice than it consumes and is the world's largest rice exporter,
supermarkets have put up signs limiting the amount of rice shoppers are allowed
to buy.
But there is also plenty of nervousness and confusion about how
best to proceed and how bad the impact may be, particularly as already strapped
governments struggle to keep up their food subsidies.
"This is a perfect
storm," President Elias Antonio Saca of El Salvador said last week at the World
Economic Forum on Latin America in Cancun, Mexico.
"How long can we
withstand the situation? We have to feed our people, and commodities are
becoming scarce. This scandalous storm might become a hurricane that could upset
not only our economies but also the stability of our countries."
In Asia,
if Prime Minister Abdullah Ahmad Badawi of Malaysia steps down, which is looking
increasingly likely amid postelection turmoil within his party, he may be that
region's first high-profile political casualty of fuel and food price
inflation.
In Indonesia, fearing protests, the government has revised its
2008 budget, increasing the amount it will spend on food subsidies by about
$280m.
"The biggest concern is food riots," said HS Dillon, a former
adviser to Indonesia's Ministry of Agriculture. Referring to small but
widespread protests touched off by a rise in soybean prices in January, he said:
"It has happened in the past and can happen again."
The Philippine
government has started selling subsidised rice at military bases to ensure
soldiers and their families have a sufficient supply of cheap grain, while other
supplies are being stockpiled for the poorest members of society.
Last
month in Senegal, one of Africa's oldest and most stable democracies, police in
riot gear beat and used tear gas against people protesting over high food prices
and later raided a television station that broadcast images of the
event.
Many Senegalese have expressed anger at President Abdoulaye Wade
for spending lavishly on roads and hotels for an Islamic summit meeting last
month while many people are unable to afford rice or fish.
The rising
prices are altering menus, and not for the better. In India, people are
scrimping on milk for their children. Daily bowls of dahl are getting thinner,
as a bag of lentils is stretched across a few more meals.
In Cairo's
Hafziyah Street, peddlers selling food from behind wood carts bark out their
prices. But few customers can afford their fish or chicken. Food prices have
doubled in two months.
Ahmed Abul Gheit, 25, sat on a wooden chair by his
own pile of rotting tomatoes. "We can't even find food," he said, looking over
at his friend Sobhy Abdullah, 50. Then, raising his hands toward the sky as if
in prayer, he said: "May God take the guy I have in mind."
Abdullah
nodded, knowing full well that the "guy" was President Hosni Mubarak.
It
is the kind of talk that has prompted the government to treat its economic woes
as a security threat, dispatching riot forces with a strict warning that anyone
who takes to the streets will be dealt with harshly.
Niger does not need
to be reminded that hungry citizens overthrow governments. Its first
postcolonial president, Hamani Diori, was toppled amid allegations of rampant
corruption in 1974 as millions starved during a drought.
More recently,
in 2005, it was mass protests in Niamey, the Nigerian capital, that made the
government sit up and take notice of that year's food crisis, which was caused
by a complex mix of poor rains, locust infestation and market manipulation by
traders.
"As a result of that experience the government created a
Cabinet-level ministry to deal with the high cost of living," said Moustapha
Kadi, an activist who helped organise marches in 2005. "So when prices went up
this year, the government acted quickly to remove tariffs on rice, which
everyone eats. That quick action has kept people from taking to the
streets."
In Haiti, where three-quarters of the population earns less
than $2 a day and one in five children is chronically malnourished, the one
business booming amid all the gloom is the selling of patties made of mud, oil
and sugar, typically only consumed by the most destitute.
"It's salty and
it has butter and you don't know you're eating dirt," said Olwich Louis Jeune,
24, who has taken to eating them more often in recent months. "It makes your
stomach quiet down."
But the grumbling in Haiti these days is no longer
confined to the stomach. It is now spray-painted on walls of the capital and
shouted by demonstrators.
In recent days, President Rene
Preval of Haiti – who has already seen his prime minister voted out – has
patched together a response, using international aid money and price reductions
by importers to cut the price of a sack of sugar by about 15%. He has also
trimmed the salaries of some top officials. But those are considered temporary
measures.
Meanwhile, most of the poorest of the poor suffer silently. In
the sprawling slum of Haiti's Cite Soleil, Placide Simone, 29, offered one of
her five offspring to a stranger. "Take one," she said, cradling a listless baby
and motioning toward four rail-thin toddlers, none of whom had eaten that day.
"You pick. Just feed them."