December 19, 2007 (LPAC) -- Record prices for major agricultural commodities and a reduction in the volume of food aid means there is a serious risk that global hunger will worsen next year, according to the United Nation's Food and Agricultural Organization (FAO) report published on December 17. This is the end-result of the hyperinflationary "wall of money" policies being carried out by the central banks -- famine.

The warning by the FAO came as wheat prices on Dec.17 jumped to an all-time high on Dec. 17, soybean prices hit a new 34-year high, and corn rose to an 11-year high on strong demand and tight supplies reflected in extremely low global inventories. The food price hikes are the result of hyperinflationary money-pumping policies, and the long-term failure to invest in agricultural production and infrastructure.

Jacques Diouf, FAO director general, saw a serious risk of poor people getting less food next year because of the impact of high food prices and a reduction of volume of food aid. What Diouf does not say is that there had been a serious drop in agricultural production for several years, and it would get worse.

In this report, FAO asked for financial support for a voucher system to help farmers in poor countries buy seeds and fertilizer, both of which are rising in price, in an effort to boost local production. Rising prices for crude oil and natural gas, the major feedstock for fertilizer, have pushed manure prices to levels not seen in the past two decades. Seed prices have risen on higher demand from emerging countries.

The FAO's call came as countries around the world continued to take unilateral measures to protect local food markets. China said it would scrap a tax rebate on agricultural commodities exports to clamp down on foreign sales.