Friday, November 9

Warning to China and the world, the pork's getting expensive

The inexorable rise in the price of pork in domestic chinese markets is worrying me. Not only from the world financial markets perspective but also from the perspective of the stability of the country. Rural China is a tinderbox with seething riots, poverty and inequality. So if domestic pork prices rise at the rate of 5.4% per month (almost doubling this year), it will cause severe angst, feed through to inflation, further cause clamp downs on investment and spending, cause dislocations in the foreign exchange and fixed income markets, force crackdowns on protests and corruption, or cause the chinese government to open taps, god, the mind boggles.

Very worrisome.

All this to be taken with a grain of piquant salt!!!

No comments: