The cost of living has risen drastically around the world from increasing real-estate, gasoline, education and now food. But its not fillet mignon or sauteed lobster tail that have risen in cost, it’s the basic essentials of developing nations. Take Egypt for example and the increase in simple staples of nourishment, rice, bread, beans, onions even vegetable oil. Foods such as these have increased more than double since 2004 and some cases quadrupled in only a few months. We’ve all heard of the massive bread shortages in Egypt due to the increased cost of wheat but now what used to cost 2 EGP for vegetable oil now costs 15 EGP. Fava beans, the most basic food, afforded by the poorest of the poor costs 8 EGP per Kg, something that cost a quarter of that a year ago.

Egypt is not alone in rising food costs, its an epidemic affecting millions of people across the third world and the cause of the increase will amaze you. Though rising gas prices and the corresponding increase in transporting food is part of the problem it only accounts for 15% of the increase. Ironically the increase in the cost of beans, grains and oil’s have come from developed nations and their response to increased oil costs. Governmental policies within the U.S. and E.U. have caused an increased demand on beans and grains to be used for bio-fuel, a supplement of petroleum. The programs designed to fulfill specific quotas are operating with an inefficiency not seen since the peak of the Soviet Union. Farmers, corporations and scientists are milking the government for extremely high and wasteful subsidies, robbing taxpayers and wasting enough grain to make Stalin proud, resulting in the worldwide cost of farmed goods to sky rocket.

Do I blame the U.S. like every Osama bin Laden loving Arab will once this news reaches the mainstream? No, no, no, quite the contrary. I blame Arabs! You heard me. As always Arabs manage to shoot themselves in the foot out of their own greed and their inability to see past their own nose. Do you happen to notice something here?

Since 2004 the barrel of oil has gone from $32 to $115 because Arab oil producers want to squeeze the U.S. for every last penny being that they consume 35% of the worlds oil and as a result of the price gouging, the U.S. (seeing no end in sight) has begun to pursue other forms of fuel such as Bio-fuel causing food to dramatically rise in price starving the very nations who have profited off the oil in the first place. (Egypt hasnt made crap off of oil but we’ve been caught in the crossfire like many other poor nations). You see the world and all its misfortune are a chain reaction of events. So when the Arabs want to blame someone for this problem, please look at your neighbors.

Wall Street article about Bio-Fuel and Poverty

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