Cause of the Cost


Recently, the prices of our prime commodities have gone up. First the price of petroleum and then the price of rice and wheat, and now corn and maize are running short as well. Various individuals have released different and similar explaination as to why this is happening. In the Philippines, people (politicians and “experts”) are saying it is because of the incorrect use of land. Referring to the conversion of farmlands into recreational centers. Some Leftist groups are saying it is because of lack of investment of both money and effort into agriculture. Well I say theres more to it than just that.

More than a decade ago the US supported Iran during the Iran-Iraq war, but after the Contra-Iran Affair and the Embassy Hostage Taking Crisis and the recent allegations of Iran having weapons of mass destruction the Iran-US relations are far from being on the good side. And because of this, the US declared following the Embassy Hostage Taking an embargo on Iranian goods which, although not proclaimed, but it is understood that ally nations should follow. One of the products embargoed was wheat, which is running low now and rice. During those times Iran was not yet industrialized, and relied mostly on agriculture goods. But because demand on those products were reduced, it also reduced its production. Which I think is a factor of the shortages now. Most of the farmlands are now converted into industrial parks.

For the oil problem, the reason why oil-producing countries are raising prices is, according to them, terrorist attacks on oil refineries. I don’t think that’s much of a reason to raise prices. Here in the Philippines, gas prices are increasing by one peso each week. Now the oil refinery attacks are in Nigeria and Iraq. Are they the only oil-producing countries? Or just the ones that are aligned to the United States? Venezuela is a major oil producing country today. Why don’t we get our oil from them? Is it because Venezuelan President Hugo Chavez calls American President George Bush a fascist? And I end with this line, that is the cause of the cost.

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