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Riots in Haiti--Is Nicaragua Next?Submitted by fyl on 9 April, 2008 - 08:30.
Riots over rising food prices in Haiti are in the news. Haiti is the poorest nation in the Western Hemisphere. Nicaragua is number two. There has been a significant rise in basic food prices in Nicaragua. It is seen less in regions where food is produced than in areas that require more transport such as Managua. In addition, Managua has a high enough population density that if "inspired", it would be relatively easy to have riots. Is there a real danger here? Is that something that can be done today to decrease the possibility of such events? ( categories: )
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PollIn Nicaragua, my income will come from Job in Nicaragua 4% Run business in Nicaragua 33% Pension/investments/savings 35% External work (e.g., on-line) 19% No clue 8% Total votes: 48 A ThoughtI spent 33 years and four months in active service...[in] the Marine corps. During that period, I spent most of my time being a high-class muscle man for Big Business, for Wall Street and for the bankers. In short, I was a raketeer for capitalism... I helped purify Nicaragua for the international banking house of Brown Brothers in 1909-1912... I helped in the rape of half a dozen Central American republics for the benefit of Wall Street. |
Food...
Managua has a history of riots but I have never heard of food riots in Managua yet..Haiti recieves alot of U.N. assistance and alot of World food aid,so you can imagine what things would be like if they didn't have that aid..We are in some troubling times Oil and Grain commodity prices reaching record highs daily..looks like a worldwide Recession Depression is looming, driven by out of control Commodity and Energy prices..Not to mention the falling value of the dollar...Scary Scenario when you think about it.
indeed
Its quite scary how inflation is getting out of control( especially in Nic), also "stagflation" is what a lot of people are afraid of, especially those who remember the late 70's early 80's. I think this might get worse before it gets better, it WILL get better eventually, might take a while though.... meanwhile I am hedging against inflation, bought POT and MOS stocks (Agriculture, ferts, etc) a while back and I have made some *fantastic-outregeous* gains on those 2 puppies, all thanks to grain inflation.
The film (last time around)
Worth watching: http://www.aristidethefilm.com/
And...
Also worth watching:
http://www.thepriceofsugar.com/about.shtml
the price of sugar and the price of oil
4000 american lives in Iraq and counting, $12 billion per month.....resulting in the impending collapse of the U.S. Dollar. here is an equation: dollar goes kaput, ex-patriate gringos screwed....if you read the papers, Brazilians have been returning en masse due to their country's appreciating currency.
In the meantime, the plight of Haitians in the DR does not affect Nicaraguans, the war in Iraq has caused worldwide inflation.
If hedge funds were prohibited from investing in oil, gas would not be $3.50+. The only growth industry in the US besides government spending is financial speculation. The same friendly folks that created the subprime mess.
Azucar!!!!!!!!!!!as Celia Cruz loved to say!
Thanks
Thanks for the pointer. The film sounds great. That is, it sounds like it covers what I was thinking--you can't just hand out "a solution".
Where the unmet needs are greatest . . . .
Where the unmet needs are greatest . . . . I think I have read that the Sandinista's have subsized the costs of the basics in the food basket. Seems like a welcome strategy for offsetting the harshest results of rising oil prices.
re: food riots in Nicaragua?
Unlike Haiti, Nicaragua is for the most part self-sufficient in terms of food. Prices of course have been rising due to external forces namely the artificially manipulated oil price.
I recently returned from Nicaragua and it was sad to see how expensive certain things are, and how fast your dolares vanish while in Nicaragua.
Nicaragua has huge potential in biofuels, but the current piricuaco government in Nicaragua is indifferent and even hostile to anything that will jeopardize the F$LN's subsidies they are receiving from Chavez!
Nicaragua already produces vast quantities of ethanol, but all of it is being sent to Europe!!. Interurban (say Rivas to Managua) bus fares are getting expensive! fuel will determine everything! gas in my part of the USA is over $3.40 per gallon and rising!
biofuels
That has been discussed here before with some very good references. Producing biofuels increases the cost of food. Not a good thing. In addition, biofuel production is a net energy loss.
oil from algae...
might be a winner.
http://www.oilgae.com/
There are a lot of folks working on different processes some claiming 10,000 gallons per acre/year. Actual numbers will doubtlessly be lower but the technology looks good.
-Doug
If you're not part of the solution, you're part of the precipitate
There is a new facility
There is a new facility setting up where I am now for producing oil from algae. It was a large shrimp farm previously. We will see how it goes.
are they using...
the shrimp pond to grow in?
-Doug
If you're not part of the solution, you're part of the precipitate
woo hoo...Way to go Texas
I love it when I find my own answers! Yes, they are. That would be PetroSun using open ponds, growing salt water specie to avoid contamination with wild fresh water varieties. It says they are working on bio jet fuel and bio plastics too.
-Doug
If you're not part of the solution, you're part of the precipitate
That's it Doug, just down
That's it Doug, just down the street from my house.
Do a google map of Arroyo City, TX or better yet:
35518 Marshall Hutts Rd., Rio Hondo Tx 78583 and you can see all the ponds. Cool huh?
way cool..
that's a big, make that huge, facility, that would work so well in Nicaragua. They could use Lake Managua, couldn't screw it up any worse. ;) Thanks for the info
-Doug
If you're not part of the solution, you're part of the precipitate
biofuels
Fyl: I think the proof is in Brazil! the only major country that has become liberated from the hedge-fund driven oil price hikes!
ethanol such as the one made from CORN is directly causing rising food prices (eggs, meats, etc). Due to ADM and other agrobusinesses in the USA, efficient sugar cane derived ethanol from Brazil is subject to a $0.54 tax per gallon.
Go to Brazil and see the cars that run on straight sugar cane alcohol. Nicaragua could free up to a billion dollars in foreign exchange. Honduras recently implemented a vehicle circulation ban, precisely because of the increasing fuel bill.
By the way, a gallon of sugar cane ethanol at brazilian service station pumps costs U$1.61. This is a no brainer.
Here is the link:
http://g1.globo.com/Noticias/Economia_Negocios/0,,MUL390406-9356,00.html
Price of cane
http://www.time.com/time/covers/0,16641,20080407,00.html
that was CORN in Time Magazine's article
looked at the cover and unless that is a new ADM genetically modified hybrid, that was CORN and not sugar cane..
your post should read the price of CORN ETHANOL.....
Price
What my post "should read" would depend not on the digitally crafted photo used on the cover but on the article therein. I assume you did not read the article, nor look at it - though here is a link to do so. The article is as much about Brazil as Iowa. The lead photo of the article is of Brazil. Planting cane for fuel has costs far beyond the careful math showing it to be a huge one-way savings over petroleum. What bio-fuel costs today in Brazil is rather myopic.
corn redux
Oh, I did read the article. Having been to Brazil and having fueled a rental car with straight alcohol, and seeing how (for now) the brasilian people were not subject to hedge fund manipulated oil prices, I have first hand experience.
No matter what fuel you use, you will have byproducts due to its combustion. Nox, C02, etc etc.
In the case of brazil, the money motorists spend on cane ethanol stay in brazil. You forget that the USA subsidizes oil indirectly by its military expenditures guarding the sealanes that keep it supplied.
Brazil's strategic security is enhanced by not relying on the middle east for its fuel. Corn is a major foodstuff, sugar cane is not.
If you track (assuming you read portuguese) is that the price of sugar cane ethanol has steadily decreased in Brazil.
I find it hypocritical when american or european environmentalists decry the loss of rainforests abroad, when their ancestors clear cut their own forest to begin their industrialization.
the brazilian military governments in the 70's saw that reliance on oil would be a huge problem. They found a solution and now brasil is better for it.
Foodstuffs
The byproducts are not the only concern, which is one of the points of the article referenced. If you think the corn used to make ethanol is a "major foodstuff" then you are mistaken. In fact, the corn used to this end was specifically modified for non-human consumption purposes and it is inedible, which is why it needs to be processed into ethanol, HFCS, or used on beef farms (hence the phrase "corn fed beef", which sounds better than what is really going on around those farms: http://www.kingcorn.net/).
Of course, it could be argued that they should be planting food to eat and not food to feed animals that will become food for some other animal. But, that might be another debate, or the other side of the same one. The fact that sugarcane is not a major foodstuff does not automatically exempt cane-producing countries from the debate about using food to make fuel (allegedly, they just use the good land to make a non-food to make fuel). If the land used to produce the non-food cane was instead used to produce a foodstuff, then the debate might not seem so one-sided. As it is right now, some countries grow cane and tout the fact that they are not part of the food-fuel-price problem. The problem is they could perhaps plant something else. The argument against using the "food" corn as fuel (and there are great arguments against this and the whole ethanol-as-savior plan is idiotic) doest work on one level since that corn cannot be directly consumed by humans anyway. The Iowa corn farmer is as entitled to the "this isn't food were using to make fuel" argument as is the cane producer in Brazil.
Of course it is hypocritical for countries that have eliminated the bulk of their forest resources to try to pressure Brazil into not doing them same. But, stating this doesn't do much by way of the food-fuel debate. However, the people clamoring for increased Brazilian cane might not be able to long-term maintain the concluding sentence: "they found a solution and now Brazil is the better for it".
Eliminating forests to grow sugar cane to fuel cars in not necessarily a great long-term plan and it is debatable if Brazil, 40 years from now, will be better for having done so. The costs of in-country ethanol are not really the only thing to look at, partly because trade restrictions bar Brazil from selling much of it (so stockpile or reduce price?). Cost analysis is further complicated given that Petrobas is a state company and the entire enterprise and many tied to it are all subsidized.
The combination of eliminating much of the forest and replacing it with cane that would be burned results in a giant double hit (so much more pollution it is hard to measure and no filter). Brazil used to brag about helping reducing emissions in various countries like Sweden (their laws require 6% ethanol use) but they don't mention that parts of Brazil were on health alert several times every year due to cane burning (if you gassed up on ethanol in one of these regions your first hand experience might not have been so positive). Brazil may or may not be better off in trade-off like this. The Brazilian answer under new laws is to industrialize the process and accomplish some ends via new fertilizers. This will create a great deal of unemployment and introduce chemicals into lands no longer buffered by forest-based lands. It may or may not be a good idea.
Everything Brazil does is backed up by the fact that they have their own access to their own oil. Brazil might not be a good model for very many other countries because they have the acreage, climate, cane (far superior to corn), and massive petroleum reserves.
Brazil is a major oil
Brazil is a major oil producer, and that accounts for most of that country´s energy independence. Ethanol from sugar cane helps a little, but it´s primary benefit is to substitute for MTBE (a gasoline additive used to boost octane levels). MTBE was meant to replace lead in gasoline because lead pollutes, but it´s been found that MTBE is also a serious groundwater pollutant. Ethanol is a very good non-polluting replacement for MTBE, but it isn´t a great solution to the energy crisis.
If you want to know more about MTBE, and why ethanol is such a good substitute, please look here:
http://en.wikipedia.org/wiki/MTBE
peace, Expat