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Old 11-11-2008, 01:06 PM   #6 (permalink)
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Originally Posted by Chris D. View Post
Remember how all the food prices were raised due to the cost of diesel fuel?

Well, the prices have dropped drastically, yet all the food prices have remained the same..

Whats the deal with that?
It wasn't diesel for the most part, at least AFAIK. It was the Bush administration's ethanol subsidies/mandates along w/ local subsidies/mandates. By linking fuel to food, we increase the costs of food when fuel rises. Since they're linked, the price of oil rising drives the price of corn up, which results in substitution, and creates upward pressure on the prices of other foods. Not to say that the jump in diesel costs didn't contribute, just that it isn't responsible for most of the costs. So far we're at ~373 w/ corn, so it hasn't come down that much, and until it does I don't expect food prices to drop drastically either.
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