The ongoing food crisis has claimed more lives after security forces killed at least five people during food riots in the Somali capital Mogadishu.
According to the AFP news wire:

At least 20,000 people were out on the streets to demonstrate as anger grew at printers of fake money and unscrupulous traders whose preference for US dollars over the Somali shilling is helping to push inflation to record levels.

Economically painful consumer sandwich…Americans and Brits in the same sinking boat. No coincidences in oil production, comrade…prices that wear booster rockets. Could Skodas make a play in the United States…the high price of food riots…and more!

The world could be “one crop failure away from an actual food crisis”, said George Wehrfritz and Jason Overdorf in Newsweek. Driven partly by speculation, the per-ton cost of rice, wheat and corn has surged 50% or more since mid-2007; Thai white rice prices are up 40% since the start of the year and world rice stockpiles are at their lowest levels since the 1980s.

In Far East trading, both gold and silver got sold off…starting at the Hong Kong open. However, the bottom was in the moment that London traders showed up for the day. But the real fireworks didn’t start until the New York traders joined the party…then both metals staged huge rallies. This was, of course, on the back of the US$/oil news.

Stocks Sideways as Earnings Reports Await… Gold Shrugs off IMF Sale Report… Dire Forecast From World’s No. 2 Oil Producer… Food Riots in Africa, Caribbean…and a Worrisome Sign in New York City… Kerr’s Farmer Contacts Bring Bad Tidings on Ethanol Plants, 2008 Crops.

Forget the credit crunch for a moment. We are now in the early stages of a global “food crunch” that could have far more serious consequences. Take a look at the price of rice, a global food staple that feeds half the world.

Major spikes in rice prices and other staples have kicked off food riots in Yemen and Morocco and hoarding in Hong Kong, reports The Washington Post.

As a result of the price hikes Egypt, Cambodia, India and Vietnam have restricted export restricted the export of rice.

“And as more Insane Economic News Of The Day (IENOTD), the Fed’s personal stash of U.S. government debt is down another gigantic $48 billion last week! $48 billion! In one week! One freaking week!”