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Thread: The world faces food shortage and inflation pressure!

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[quote=APAULT,281014]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.[/quote]

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