Forget the credit crisis. We are now in the early stages of a global food crisis that could have far more serious consequence.

The leading indicator of the food crunch is rice. Rice — the food staple for three billion people — has risen a whopping 60% December last year.

“That is alarming news when you are talking about the main food staple for 3 billion people,” says Taipan Daily’s Justice Litle.

“What we have here is a looming market failure with no small resemblance to the credit crunch. The global grain markets are caught up in a vicious cycle, not unlike the one that gripped global financial markets.

“As the subprime crisis unfolded, and news of toxic balance sheets spread, it became clearer that lending to one’s fellow bankers was a dangerous proposition. And so the banks began to hoard their capital, keeping it to themselves for fear of getting burned.”

The headlines say it all.

“High food prices seen leading to strikes, protests in Asia,” reports AFP.

“Rising food prices could cause worldwide turmoil and political instability,” says the Press Association.

“The world needs more agriculture,” says 12% Letter editor Tom Dyson. Tom has found a great way to invest in feeding the world.