Skip to comments.China introduces subsidies amid food shortages
Posted on 11/17/2010 8:08:01 AM PST by FromLori
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.
The Shanghai composite index ended Wednesday down a further 1.9%, having fallen more than 4% on Friday and again on Tuesday.
(Excerpt) Read more at bbc.co.uk ...
Aww... come on! I thought the Chinese had seen, from observing the US and Europe, that socialism doesn’t work.
Chinese “socialism” only got positive GDP growth after switching to capitalism
End all bio-fuel subsidies and tax incentives. Now.
Dumbest think W ever did.
“The government also said it had not ruled out price controls if current grain and vegetable shortages worsen.”
Because price controls always increase supply. /sarc Idiots.
Their currency is pegged to the dollar. Obama massively inflated the dollar via a 600 Billion QE spree. Thus they are encountering sky high inflation.
The best way out of this situation is for China(and most of the G20) to stop using the dollar as the global reserve currency.
Thus begins China’s downfall.
One of the few reliable exports we can still manufacture is agricultural products such as corn. Unfortunately, we are so caught up in the Cult of No Carbon, that we are willing to forgo these exports and allow less fortunate agriculturally deprived areas to starve.
Those policies will affect us even more here soon as well as the Feds printing causes more inflation along with the EPA plans to increase the use of ethanol in our fuel from 10 to 15 percent.
Think $5 Corn Is Expensive? Some Are Betting On $10 Next Year
Farmers have cut their cattle herds due to the high price of feeding them and meat prices have already gone up as a result.