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Wheat Prices and Egyptian Instability

(Asia Times-Hong Kong) Spengler - Egypt is the world's largest wheat importer, beholden to foreign providers for nearly half its total food consumption. Half of Egyptians live on less than $2 a day. Food comprises almost half the country's consumer price index, and much more than half of spending for the poorer half of the country. This will get worse, not better. 35% of all Egyptians, and 45% of Egyptian women, can't read. To expect Egypt to leap from the intimate violence of traditional society to the full rights of a modern democracy seems whimsical. Asian demand has priced food staples out of the Arab budget. As prosperous Asians consume more protein, global demand for grain increases sharply. Asians are rich enough to pay a much higher price for food whenever prices spike due to temporary supply disruptions. Egyptians, Jordanians, Tunisians and Yemenis are not. It turns out that China, not the U.S. or Israel, presents an existential threat to the Arab world, and through no fault of its own.
2011-02-03 08:44:06
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