Record-shattering heatwaves all over the world, massive wildfires in Russia, truly historic flooding in Pakistan and China and devastating droughts in many other areas are playing havoc with harvests all over the globe. This is leading many analysts to predict a sharp rise in food prices for the rest of 2010, and there are even whispers that 2011 could see the outbreak of global food riots that are even worse than what we witnessed back in 2008. The truth is that things are starting to get more than a bit frightening out there. One quarter of Russia’s grain crops have already been wiped out by the unprecedented heatwave and the massive wildfires that have been ravaging that nation. In fact, the Russian government has announced that they have banned all grain exports for the rest of this year. This has caused a dramatic surge in the price of wheat on world markets. Unfortunately, Russia is far from alone in dealing with bad harvests this year. So what happens when global food prices go so high that the hundreds of millions of people existing on the edge of poverty around the world can’t afford to buy food any longer?
That is a very sobering question.