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	<title>Reflections of a crazy Colombian &#187; Economics</title>
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		<title>Chaos Theory: explaining the problems with our move to bio-fuels</title>
		<link>http://crazycolombian.com/2007/03/03/the-theory-of-chaos/</link>
		<comments>http://crazycolombian.com/2007/03/03/the-theory-of-chaos/#comments</comments>
		<pubDate>Sat, 03 Mar 2007 08:09:00 +0000</pubDate>
		<dc:creator>The Crazy Colombian</dc:creator>
				<category><![CDATA[Opinion]]></category>
		<category><![CDATA[The Environment]]></category>
		<category><![CDATA[Economics]]></category>
		<category><![CDATA[Mexico]]></category>

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		<description><![CDATA[
Image: blue on a tree by Carlos R
&#160;
 Who would have thought that an esoteric branch of mathematics could explain some of the current problems of poor mexicans? Chaos theory explains the latest problem for this segment of Mexican society.
At the heart of this argument lies the classic &#8216;butterfly effect&#8216;. According to Wikipedia,the butterfly effect [...]]]></description>
			<content:encoded><![CDATA[<p></p><p align="center"><img src="http://farm1.static.flickr.com/1/129474449_687fdd5ede.jpg?v=0" align="top" height="333" width="500" /><br />
<em><font size="1">Image: <a href="http://www.flickr.com/photos/roundhillguy/129474449/">blue on a tree</a> by <a href="http://www.flickr.com/photos/roundhillguy/">Carlos R</a></font></em></p>
<p align="left">&nbsp;</p>
<p align="left"> Who would have thought that an esoteric branch of mathematics could explain some of the current problems of poor mexicans? <a href="http://en.wikipedia.org/wiki/Chaos_theory">Chaos theory</a> explains the latest problem for this segment of Mexican society.</p>
<p>At the heart of this argument lies the classic &#8216;<a href="http://en.wikipedia.org/wiki/Butterfly_effect">butterfly effect</a>&#8216;. According to Wikipedia,the butterfly effect <span style="font-style: italic">&#8220;&#8230; refers to the idea that a butterfly&#8217;s </span><span style="font-style: italic">wings might create tiny changes in the</span><span style="font-style: italic"> atmosphere that ultimately cause a tornado </span><span style="font-style: italic">to appear</span>&#8220;. In this case, there is no butterfly; rather, an insatiable petrol-hungry beast: North America. With the trend in petrol supplies and price increases, <a href="http://www.whitehouse.gov/news/releases/2005/05/20050516.html">George Bush&#8217;s administration has been promoting the generation of significant quantities of bio-diesel</a>, and corn is one of the primary sources of raw material used by bio-diesel manufacturers.</p>
<p>Since the USA and Mexico have a Free Trade agreement, it is extremely easy (and cheap) for these producers to source  it corn from their third-world neighbour. The result is an <a href="http://www.scoop.co.nz/stories/HL0701/S00304.htm">exhorbitant increase in local prices of corn</a> throughout Mexico. Now the poor no longer can buy tortilla&#8217;s, one of their basic staples.</p>
<p><span style="font-weight: bold">The theory of chaos:</span><br />
NAFTA + Global economics + Petrol crisis = poor Mexicans going hungry.
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