China introduces subsidies amid food shortages

[dipsydoodle]

Source: BBC News

China's government has said it will provide poorer households with subsidies in response to double-digit food price inflation.

Inflation accelerated to 4.4% in October, with food prices rising 10.1%.

The government also said it had not ruled out price controls if current grain and vegetable shortages worsen.

Meanwhile the Shanghai stock exchange has fallen nearly 10% in four days on fears of more interest rate rises in response to the price rises.

Read more: http://www.bbc.co.uk/news/business-11772184

[Mika]

1. Interesting.

Thanks for posting this.

When Cuba subsidizes foodstuffs, the anti Cuba crowd mewls that it is forced "rationing".

Waiting to see if they show up to post here.

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[dipsydoodle]

5. Funny you should mention that.

It's only on reflection I can say that most Cubans looked both fit and healthy to me with little if any obesity. That is helped by their climate which allows fruit and vegetables to grow in abundance throughout the year - China does not have that advantage. Of necessity Cubans had to learn the hard way when the USSR pulled the plug.

There's a lot to be said for The Power of Community : http://www.powerofcommunity.org/cm/index.php

:hi:

[madrchsod]

2. china could be in deep trouble....

http://www.bloomberg.com/news/2010-11-08/china-corn-harvest-gains-failing-to-keep-up-with-demand-sgs-survey-shows.html

[NickB79]

6. We're all in big trouble.

Climate change on a global scale will hit crop production everywhere. Here in the US, our corn crop was smaller than expected due to warmer than normal nighttime temperatures that interfered with pollination.

[fasttense]

3. I suspect it is speculating on the commodities market that is raising prices.

As Dr. Ravi Batra predicted, commodities would rise in price as the next big bubble.

[onehandle]

4. Republicans introduce suicide booths amid food shortages.

Soylent Green will be poor people.

[AngryAmish]

7. They have a ton of money. THey will simply buy the corn.

The main feature of the CCP is that it is a dynasty like any other dynasty. The features are different (not a familial dynasty really - Gang of Four cured that) but they fear civil unrest, especially civil unrest with a religious bent, more than anything else. The worst tragedies in human history have come from Chinese civil wars and times when common people get swept up in things - recent history includes Cultural Revolution, the Great Leap Forward (which may have been the worst thing ever in human history as measured in human souls lost) and of course the Taiping Rebellion.

CCP want people fed and not squawking. They will do ANYTHING to keep people fed. So they will buy and bid up prices all over the world.