Good news, everyone! The "westernization" of China is complete! The Associated Press is reporting that food prices are soaring in China with double digit inflation in some commodities, where grains and vegetables have increased the cost of food more than ten percent. The Chinese government will subsidize food prices for the poor to quell citizen unrest. The average “poor” Chinese citizen spends 50% of their income on food. Who knew that rice, noodles and a few veggies were that expensive?
Fortunately, and unlike some western nations, China does keep stores of food on hand and intends to release these stocks into the market to dampen prices. Summer storms that damaged crops are blamed for the increase in prices, along with shortages of diesel fuel which has hampered the delivery of food supplies. Sources say the fuel shortages are the result of the oil industry with holding gasoline and diesel fuel in anticipation of a government increase in the price of petroleum products in response to global hydrocarbon demand.
|The Sun And Moon Pagodas- China|
SHTF America predicted an increase in the price of grains for some nations after one third of the Russian wheat crop was destroyed by wild fires this summer in an unusual heat wave around Moscow.
If commodity prices continue to climb, and they will, this will put more pressure on China to increase the value of its Yuan as the United States and Europe have demanded. A stronger Yuan will allow China to purchase more food for its citizens globally; but this will increase the cost of Chinese exports to the world consumer, create a drop in demand for Chinese products, while inflation is passed to the United States and European middle classes whose purchasing power will decline, and with it, a diminished quality of life. This phenomena was also predicted by SHTF America.
It’s easy to predict the process because it is all part of the Grand Design of that trilateral axis of evil, Big Business, Big Brother, and the Bankster Gangsters of Big Banking: collectively known as the New World Order, of George Bush Sr. and the political and financial elite of the USA and Europe. More wealth for them as they control the means of production (land, labor, and capital) and less for the rest of US.
Got milk? Got gold? Got silver? Get some while you can.