George Washington’s Blog
November 27, 2008
The headline of an article on Bloomberg warns “Food Prices Will Rise, Causing Export Bans, Riots”.
Leading economist Nouriel Roubini warns of possible food riots.
The Financial Times points out that farmers rely on credit, and credit is drying up.
One of the top experts on derivatives, economist Nassim Nicholas Taleb, warns
that supermarkets may not be able to borrow against their inventory, and will thus be forced to shut down.
I hope they’re wrong. But when experts like Roubini and Taleb warn of a potential problem, I have to listen.