With wheat and corn being two of the primary food sources in the world, the U.S. government needs to only look in the mirror to find out where the origination of these huge price increases are coming from.
Why? The totally ignorant idea to mandate ethanol increases is proving to be a destructive force in food prices around the world.
The reason the wheat prices are increasing, is the growing price of corn, as a result of the artificially induced ethanol market, has resulted in less wheat being grown, which has then caused the prices to rise.
Creating the artificial and basically worthless ethanol market has already caused huge disruptions in the market, and we're only getting started.
The Bush administration mandated an increase of six times current ethanol use by 2022, which is skewering the food markets in a big way.
As usual, when governments enter into areas they have no idea what they're doing, they end up causing disasters, as they aren't able to take into account the unintended consequences which always arise from these types of initiatives.
To exacerbate all this, wheat harvests from around the world have been poor, as weather slowed the harvests in parts of China, Europe, Australia, and a number of other Asian countries. This created a demand for American grown wheat which was unexpected; causing prices to rise again.
We need to drop the ethanol mandate, which is starting to be questioned by an increasing number of agriculture experts and scientists as to its real value; similar to global warming being discovered recently as built upon faulty computer models, and in reality the weather worldwide has been declining in temperature since 1998.
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