Drought Creates Water And Food Shortages For 1.37 Million In China
China Daily reports that drought creates water and food shortages for 1.37 million in China.
Water, food shortages for 1.37m after drought (Xinhua)
YINCHUAN — Sustained drought over the past seven months has caused water and food shortages for more than 1.37 million people in northwest China’s Ningxia Hui Autonomous Region, the local government said Monday. Market Skeptics
If you are NOT reading Market Skeptics the following is the sort of analysis you are missing.
The world is facing a catastrophic fall in global food production in 2009, and these Chinese food shortages are evidence of this. It is only a matter of time before China starts importing more grains, driving up world food prices.
As I reported back in January, Hunger trumps unemployment. Chinese authorities, when faced with the choice of millions of unemployed workers and millions of hungry workers, will choose to sacrifice exporters and the dollar peg.
Not only will the Chinese entering the market for wheat drive up prices but all those dollars that have been safely locked away as Bernanke has hoped will be running around making havoc by too many dollars chasing too few goods. Here is Ron Paul discussing the problem with Bernanke…it gets ugly for dear old Ben.
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