As the onslaught of growth continues in China so does their want for raw materials and to be able to obtain them they need to feed their people. But what of the cost of their rising food costs how will they tackle that when it is their stable diet that has been in the past their life blood. The facts speak for themselves as you gain wordly wealth you lose the basics that sustained life for so long. Which do you really need and what do you really want, only time will tell and history will record their contiunued growth or demise.
China’s premier Wen Jiabao has said the government is preparing new measures to stem double-digit food price inflation.
He gave no details, but they are said to include price caps, subsidies and penalties for food hoarding.
Meanwhile the Shanghai stock exchange has fallen nearly 10% in four days on fears of interest rate rises.
The average wholesale price of some vegetables in Chinese cities rose by nearly two-thirds in the first 10 days of this month, raising fears that food hoarding was exacerbating shortages.
The Fed’s new round of QE threatens to weaken the dollar, making Chinese imports less competitive in the US.
SHANGHAI COMPOSITE INDEX