Children of a lesser God

Discussion in 'Economics' started by nitro, Aug 17, 2011.

Is the result of a weak dollar causing famine in poor countries?

  1. Yes.

    7 vote(s)
  2. No.

    11 vote(s)
  3. I don't know.

    3 vote(s)
  4. I don't care.

    5 vote(s)
  1. nitro


  2. No. Famine is usually caused by a lack of rain or crop production. The dollar doesn't have power over the weather. :p
  3. nitro


    There is evidence to support what you say, and of course it makes sense, e.g.,

    On the other hand, scores of other writing seem to paint a more complex picture:
  4. weak dollar = fertilizer more expensive.

    Fertilizer more expensive = less use of fertilizer

    Less use of fertilizer = less crop yield

    Less crop yield = higher prices for crops (more demand than supply raises prices)

    Higher crop prices = people with little money can not afford to eat as much (famine)

    Therefore, a weak dollar = famine in poor countries.
  5. weak dollar means stronger Yuan so fertilizer's being more expensive in USD has no effect on chinese farmer's usage of more expensive dolar priced fertilizer. Because in Yuan terms it wil stay at the same price for the chinese farmer assuming the increase in dolar price of fertilizer is same as the appreciation of Yuan against USD in % terms.

    So your logic is flawed.
  6. Only 1 thing i can say to that...

    Yuan is pegged to US dollar.

    Looks like your whole argument fell apart now. A weak dollar = a weak yuan in every other currency. Chinas other trade partners like Japan, South Korea, Turkey, Germany....all those countries do not take US dollars which means higher prices for those imports which means less money for other things. Turkey holds 72% of the worlds reserves of boron which is an ingredient in fertilizer and pesticides. US is also a major producer of boron so chinese have to buy that from us too.
  7. LeeD


    1) Dollar exchange rate has no identifiable effect on weather conditions, which adversely affect harvest
    2) The major effect is Chinese population getting richer. So, they are prepared to pay more for food and people in poorer countries are outpriced
    3) It is more profitable to grow fruit. So, less and less crops are grown
    4) When dollar was getting more expensive farmers in Africa complained they were getting paid in Euro. What's wrong now?

    P.S. In a poll like this there should be more than one option selectable. For example, I may think that your conclusion is right, your reasoning is totally wrong... and while having a strong opinion on the subject I may or may not care about people affected by famine.
  8. nitro


  9. In many parts of China, India or Africa, human or cow poop is still being used as fertilizers which is free. Nothing to do with USD or any currency.