Wednesday, March 9, 2011

Fragile Food Supply

As most people now know, China has the fastest growing economy in the world. In turn, this has led to an increase in the amount of food needed to keep their economy running. Reserve Bank Governor Glenn Stevens raised the prospect of global food shortage today. He remarked that, "These price rises will be unwelcome for very poor countries who's population's spend much of their meager income on food." This is scary for much of the world's population because most people live in 3rd world countries. With the food supply running low and the population continually expanding, it will be interesting to see how our nation reacts to the news. the Reserve Bank also reported that productivity will need to move at a higher rate than ever in history to keep up with people's demand for food. This will play a huge role in our economy as prices for food, gas, and other commodities rise in the future. Hopefully we will pull through the economic downturn and refresh the prices that were held years ago.


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