Last month we showed just how severe the collapse in Venezuela had become, as starving Venezuelans took to looting supermarkets and other food dispensaries in search of whatever food could be found.
Inflation is out of control. Now, we mostly agree that the Fed's official inflation numbers are just - ridiculous. But the real inflation, is even harder to quantify, and more subtle - as we explain in Splitting Pennies - Understanding Forex. What drives inflation is NOT Adam Smith's "Supply and Demand" - an interesting idea but completely static, and completely irrelevant for practical applications - and certainly not useful for business, or economic forcasting. Inflation is a simple function of monetary policy, multiplied by FX.
The UN has warned that severe food shortages across Yemen amid relentless Saudi attacks, has bought the war torn country “one step” closer to famine. John Ging, director of operations at the UN’s Office for the Coordination of Humanitarian Affairs (UNOCHA), said that over 10 million Yemenis need basic healthcare and over 7.6 million “are severely food insecure” He added that this is “one step below the level of famine” on the international index of food insecurity.
The UN has warned that Africa could be facing the worst food crisis in 25 years as the continent struggles with severe drought. By Christmas up to 50 million people will need food. ITV reports: Severe weather conditions caused by the worst El Niño – a weather phenomenon that affects rainfall patterns – in 30 years are worsening and drought has ravaged crops and driven up food prices. More than 31 million need food now and 20 million more are likely to run out this year, the UN said.
Submitted by Mike Krieger via Liberty Blitzkrieg blog,