| The world faces food shortage and inflation pressure! | |
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| Apr 11, 2008 02:58 |   |
 | According to FAO, the food prices have kept surging, which increased 57 percent in March compared with the same period last year. Since 2006, the food prices have increased 48 percent. On other hand, the surging commodity prices will arouse a new round of inflationary pressure and a global economic downturn. Some analysts estimate that the soaring food prices will last for a long time and the period of low food prices has been over. So far, the prices of food, crude oil and edible oil have all surged. What will the be next? How will people survive in the period of surging prices? |
| Apr 11, 2008 08:05 | #1 |
| This is certainly a big issue for China. If the government chooses to do so, it can use its billions of dollars of reserves to minimise the impact. In many ways it has to. It is exactly as Greenspan (Ex head of US Federal Reserve) said some months ago in Hong Kong - this is what can cause a challenge to the government. While the economy is expanding people are strongly behind the government, but when things slow down the government may be tested in many ways. But whose fault is it? With no malice, It is China's fault (helped but the other components of BRIC - Brazil, Russia and India. The world economy is overheated. There are not enough resources in the short term so raw materials prices rise. At the same time the merging countries' peoples have buying power and overall represent a massive increase in world demand. Add an extra factor - concern for the environment. At just the same time there is a shift to renewable enegy in the form of crops such as sugar and corn.... but if we turn them unto energy we can't eat them. Market forces will see it balance out - in quire a few years time. But the theory of the market does not recognise people as human beings. Peopel will suffer. As always it will be the poorest who suffer most. In the case of China - I hope the government is up to the challenge. |
| Apr 11, 2008 10:18 | #2 |
| Using bio-fuels as a source of energy works against the general well-being of the planet in several ways. It inflates the cost of food commodities because of a decrease in planting for food use, the land being used instead for production of bio-fuel crops. Some reports indicate that more energy is consumed in producing the bio-fuels than what the bio-fuels generate(huh?) |
| Apr 16, 2008 04:42 | #3 |
| "But whose fault is it? With no malice, It is China's fault (helped but the other components of BRIC - Brazil, Russia and India. The world economy is overheated. There are not enough resources in the short term so raw materials prices rise." Paul. It sounds reasonable. As China is developing very fast, it needs more resources. Unluckily, the supply couldn't meet the huge demand so that China needs to import raw materials. However, I wonder how the developed countries developed their economies in 19th and 20th century? Where did the resources come from? |
| Apr 16, 2008 14:54 | #4 |
| What's needed is(are) solar power or wind power (or both) generating electrical facilities for both local residences and smaller communities(in both developed and undeveloped countries) that is completely independent of the power generating (controlling) companies. Fat chance that this will ever happen though and rules and regulations governing installations of this type would in essence be controlled by the power companies thru control of local regulation agencies. The question of increased food prices may in fact be a mater of supply and demand but it also might be just an excuse thereof, who really knows. |
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