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| Home Front Economy |
| Financial Meltdown Worsens Food Crisis |
| 2008-10-27 |
| As shock waves from the credit crisis began to spread around the world last month, China scrambled to protect itself. Among the most extreme measures it took was to impose new export taxes to keep critical supplies such as grains and fertilizer from leaving the country. Capital and production tied together, are they? Original concept... |
| Posted by:Fred |
| #8 "'that money is enough to feed the poor in Africa for the next three years,' said Muchiri, head of the Eastern Africa Farmers Federation" That ain't our goddam job, asshole. Feed your own damn selves. Which you could if you weren't too busy playing communist, stealing land from those who know how to farm it and giving it to those who don't. Hope you're the second to starve, Muchiri - right behind Mugabe. In a just world, you'd both have been dispatched to Hell years ago. Along with the others of your ilk. |
| Posted by: Barbara Skolaut 2008-10-27 19:46 |
| #7 Yes, China deeply subsidizes the cost of raw materials for its key industries. And yes, that deeply distorts their price structure and the value of their currency. |
| Posted by: lotp 2008-10-27 12:00 |
| #6 I don't know if I just found another grain of support for that hypothesis, but I think I have. |
| Posted by: Thing From Snowy Mountain 2008-10-27 11:08 |
| #5 To reply to Zhang Fei: Not Just That, but if they actually developed Africa's production capability, it would have more food available and more employment. ---------------------------------------- INTERESTING bit: China scrambled to protect itself. Among the most extreme measures it took was to impose new export taxes to keep critical supplies such as grains and fertilizer from leaving the country. OK, fertilizer in most of the world are nitrogen compounds directly derived from natural gas and should track the price of natural gas very closely. The only way Chinese fertilizer is going to be cheaper than everyone else's is if the producers are paying less for natural gas than everyone else. I've been saying for a while that part of the way China keeps its whole deal going is partly by sweetheart deals giving it cheaper access to raw materials, and partly by subsidizing the raw materials costs of its manufacturers. (These can be done by 'loans' that never get paid back, for example). |
| Posted by: Thing From Snowy Mountain 2008-10-27 11:08 |
| #4 The contrast between the rapid-fire reaction by Western authorities to the financial crisis and their comparatively modest response to soaring food prices earlier this year has triggered anger among aid and farming groups. "The amount of money used for the bailouts in the U.S. and Europe -- people here are saying that money is enough to feed the poor in Africa for the next three years," said Muchiri, head of the Eastern Africa Farmers Federation. Is it my imagination, or is this guy feeling just a little too entitled? |
| Posted by: Zhang Fei 2008-10-27 10:48 |
| #3 The reason food is being exported is because Chinese farmers have had price controls slapped on them. Many are barely making money. At the same time, China won't allow foreign food to be imported without 100% tariffs. There is no food crisis - the Chinese government is only having problems enforcing its edicts. |
| Posted by: Zhang Fei 2008-10-27 10:46 |
| #2 There's plenty in China's largest export market. How about buying a few bushels? |
| Posted by: ed 2008-10-27 08:11 |
| #1 Failing to fully embrace a 'service based economy' has it's consequences. (Snark off) |
| Posted by: Besoeker 2008-10-27 08:01 |