Concern is rising about the effects of the floods on already inflated food prices. Read about it here. On top of record prices for gasoline, the increase in food costs is unwelcome at best, and a desperate blow to consumers at worst. Further, as the price of corn escalates, the price of corn-based ethanol goes up. That impacts the already crazy price of gas. Speculation in both oil and food has exacerbated the situation, as investors seek to profit from the volatility and turmoil.
What is even more alarming to economists and consumers alike is the prospect of Stagflation. This article in Slate explains the nature of the concern. Like we need this! So let me see if I have this right. Just as the most incompetent administration in the history of the United States has destroyed the economy and the American dream, prices on just about everything go up. Uh-huh. Just as record numbers of Americans are losing their homes to foreclosure and their jobs to recession and outsourcing, prices go up. Surprised? Just as the largest demographic group in history starts to retire, prices go up. One sector that is not at all upset about this sequence of events is "Big Oil." You know, the folks that sponsor George Bush and Dick Cheney. And if you think John McCain is any different, just watch this video.