THE OTHER CHINA SHOCK – HOW SURGING CHINESE IMPORTS TRANSFORMED GLOBAL AGRICULTURE

Article by Casper Worm Hansen, Professor of Economics University Of Copenhagen, and Asger Wingender, Associate Professor of Economics University Of Copenhagen. Originally published at VoxEU.

Commentary and political rant by Charles Sulka

.

.

This article touches on a critically important topic, albeit tangentially, insofar as it addresses the correlation between China’s growing agricultural imports and the resultant expansion of agricultural production in other parts of the world. The writers downplay many of the problems associated with this growth in agricultural exports, GMOs, and big agribusiness in general … such as loss of biodiversity, degradation of the environment, economic concentration, destruction of family farms and small holdings, a dependency on genetically-engineered crops with unproven safety records and unknown health issues, use of agricultural petrochemicals which wreak havoc on the environment and pose a very real threat to public health, and higher food costs for the citizens of the exporting countries. Of special concern in light of today’s unstable geopolitical tableau is the resulting interdependency of the trading nations and the concomitant loss of national sovereignty, economic independence, and political self-determinism … which results in loss of personal liberties and economic opportunity.

But the larger issue here — as if the issues outlined above are not serious enough — is what is driving this expansion of global trade in agricultural products. The reason we are seeing such a growth in international trade in agricultural products and the proliferation of ‘frankenfoods’ (genetically modified food products) is, in a word, overpopulation. Unchecked population growth has resulted in ‘life out of balance’ a condition the Hopi Tribe of Native American people call ‘Koyaanisqatsi’ (Francis Ford Coppola’s cinematic masterpiece provides a visual perspective with regard to this unbalanced condition. Buttered popcorn is highly recommended. Non-GMO popcorn, of course.)

The writers are such big fans of GMO foods and factory farms that one wonders if they might be in the pay of Monsanto and the chemical agribusiness trust. (More on this later.) As the title of this article implies, surging Chinese imports have indeed transformed agriculture — but not in a good way.

The truth of the matter is, mankind is part of nature, and cannot live apart from nature. Mankind today has lost sight of what it means to live in balance with nature. The Hopi Indians aptly described modern American life as ‘a crazy way to live.’

The root cause of the problem is overpopulation. The human population has exceeded the carrying capacity of the planet. Overpopulation is a major threat to human society in the long term, and undermines the quality of life in the short term. Population reduction is an urgent priority. Mankind needs to embrace different values — enlightened values — and learn to live in balance with nature. Hopefully, this can be achieved in time to avoid the end-time horrors of pestilence, famine, and war.

There are severe — and constantly growing — food shortages in the overcrowded Asian sub-continent, the global south, Africa, and China … and, thanks to the dismal failure of neoliberal economics, globalization, and free trade … even in America today. Hell-bent on economic growth (a chimera), the corporatists and free traders have figured out how to swap agricultural products from the less crowded regions with arable farmland for manufactured goods made with cheap labor under conditions more favorable to big business (if not to people.) This has lead to immense profits for the multinational corporations and the investor class.

But the earnings reports skew the statistics. The deceptive figures showing rising incomes (average incomes including the incomes of Bill Gates and Elon Musk, for example) fool the people into believing that things are getting better. The rising GDP (meaningless numbers) and increases in (average) incomes is proof that the economists who advise the White House finally got it right this time, is it not? Surely it is reason for the people to celebrate, joyous that we have such brilliant leaders guiding the nation?

Well, maybe not. Pretty much everyone has figured out that Bill Gates’ multi-billion-dollar annual earnings do not mean things are getting better for honest working men and women. Just the opposite is true, in fact. The current economic paradigm adopted by the West is a formula for disaster. And everyone knows it (except economists, apparently.)

What is the root cause of the current crisis? Overpopulation. We are dealing with a fundamental reality, a law of nature: if you feed them, they will reproduce.

As the population increases and quality of life diminishes, impoverished immigrants will overrun the borders of the developed countries, desperately looking to make a new life for themselves. This does not mean that those seeking refuge are evil. But it does make the vast number of victims of neoliberal (deregulated) capitalism seeking refuge in the developed nations a real problem.

America and Europe will be completely destroyed by refugees streaming across the borders. The irony is, it is the West’s economic program — neoliberal economic theories (Reaganomics), globalism, and free trade — that set the stage for this disaster.

The collapse of the countries the West has destroyed through colonialism, greed, corruption, and unsound political and economic principles forced on developing nations is driving countless desperate victims to risk everything in hopes of a chance for a better life. The Washington consensus in politics and economics is coming home to bite us in the ass, so to speak.

The more advanced nations of the world are, to a large degree, responsible for the economic problems wrought by colonialism and international development. But the West’s neoliberal economics is not the only cause of the people’s suffering. Another major cause of the current crisis is unchecked population growth.

The expansion of international trade in agricultural products is contributing to the long-standing problem — a problem that has now reached a crisis point. The end result will be — already is — waves of desperate escapees from the so-called third world countries overrunning the borders seeking refuge from the growing problems in their homelands. Indeed, this is happening today, with no end in sight. This is exactly what George Soros and other economic predators have long planned. And it is working all too well for them.

How does this benefit George Soros and the predatory jews? Simple: Once the world’s economy has completely collapsed, the financial predators will be able to buy up all the businesses, farms, and houses for pennies on the dollar, paying with junk bonds and the free money and easy credit terms (taxpayers must foot the bill in the end) the Jews get from their buddies who control international banking and the central banks. Let’s face it, George Soros and his vulture capitalist buddies may be sleazy, but they aren’t stupid.

It is essential that we take all necessary measures to preserve the environment, and restore it where it has already been destroyed. We need to bring pressure to bear on governments around the world to enact measures to limit runaway population growth. One measure would be to curtail — or strictly limit — international trade in agricultural products, especially monocrop commodity products of genetically-modified crops grown on giant factory farms. Again, look at the facts: highly mechanized factory farms provide few meaningful jobs … while wreaking havoc on the environment. But Big Agribusiness does produce immense profits for the investor class while undermining national sovereignty and individual economic opportunity. The process serves the proponents of the NWO (New World Order) well. Mankind is being corralled, guided by dark forces into serfdom by Klaus Schwab and the World Economic Forum.

Growth is not necessarily good. In fact, growth can be downright harmful. Cancer is an example of unchecked growth. Everyone abhors cancer, except perhaps the pharmaceutical industry and the health care conglomerates, who see such heartbreaking afflictions as a never-ending source of profits — Big Pharma’s obscene profits. Do you really think the Jews who control the pharmaceutical industry and own all of the hospitals and medical clinics give a damn about your well-being? If so, you need to think again.

Overpopulation results in competition for scarce resources. The situation is worsened by an increase in economic activity which has as its primary purpose exploitation of the people and the agglomeration of wealth by the grandiose and the greedy. The desire for unearned income and undeserved wealth, coupled with power-lust by a parasitic class of non-productive individuals (banksters, international financiers, politicians, and their enablers known as the PMC or professional managerial class) is the driving force behind globalization. The end result will be subjugation of the human race, imprisoned in a neofeudal two-tiered economic order from which there can be no escape. The power-mad elites plan to control all of mankind through a global surveillance state, a Dystopian New World Order. Dialectical materialism (espoused by Karl Marx) coupled with godless capitalism (espoused by Milton Friedman and the West’s neoliberal economists) will, in the end, destroy us all.

I think this article misses the point. When I read this article I am reminded of the days when scientists, in the pay of the tobacco industry, insisted that their exhaustive scientific research proved that smoking did not cause lung cancer. I have an uneasy feeling that these economists aren’t telling us the whole story here, either … that they are only reporting the findings that support their neoliberal economic construct. Mister Market will ravage Mother Earth, impoverish the people and desecrate and despoil nature, bludgeoning the human race with insidious weapons — usury, financial manipulation, and so-called free trade leading to neo-feudalism and the New World Order. Globalization is the process through which a non-elected self-serving secret ruling elite (parasites, one and all) will enslave the human population.

Globalization will cause pain and suffering for us all. For their part, these economists, steeped in pseudo-science, with their charts and graphs and models (where would economists be without their charts and graphs and models?) will have nothing to say, other than to repeat the apothegm that “Growth is good.” I can hear them now: “What part of ‘growth is good’ don’t you understand?”

I don’t get it. I just don’t understand basic economics, I guess. It all sounds like BS to me. The Reaganites told us, “a rising tide lifts all boats.” The politicians promised a brighter day in America. But the only thing on the rise is suffering: crime, poverty, homelessness, hunger, lack of access to medical care, and a lack of economic opportunity. OK, sea level is on the rise too, from global warming, which the politicians assure us is only imaginary. As for the neocons’ glib remark that a rising tide lifts all boats … well, for most Americans, their personal finances are underwater, and sinking fast.

Meanwhile, the ruling elites are building bunkers where they can hide from the chaos they know is coming, and buying tickets for space flights to Mars with Elon Musk (that man is no fool he can see the writing on the wall) because they know what is in store for them if the angry mobs get their hands on them. The rich and powerful will not escape their just rewards. Their private bunkers might protect them for a while — until their wine cellars are depleted, anyway — but in the end they will suffer the same fate as their victims. The politicians and captains of industry — and especially the international financiers — will have no one to blame but themselves. The looming end-times calamity will be a direct result of their crimes against man and nature. Yes, the elites are guilty of crimes against nature. And there will be hell to pay.

What I do understand is simple logic: if you feed them, they will reproduce. Maybe population growth does result in economic growth. For them, not us. Capitalist pigs like to live high on the hog, as they say. The workers of the world work like slaves, groveling and licking the boots of their true enemy, the economic exploiters, the ruling elites, those the radicals call ‘capitalist pigs.’ And this is exactly what they are — swine.

The corporatists will squeeze the very life out of their victims, smashing the people like bugs. Like the bugs that Klaus Schwab and the elites at the WEF (World Economic Forum) expect the rest of us to eat, along with GMO frankenfoods and ‘plant-based’ meat.

Like so much else in life, I guess it’s all just a matter of perspective. From my point of view, I’m a little bit leery of all this talk about a New World Order. I’m not saying the old world order was perfect…. But is was better than what we have now, and it was a hell of a lot better than what the elites have in mind for us if their plans succeed.

I say it’s time we put a stop to this nonsense. It’s time we came to our senses, before it is too late.

What can the American people do to stop the nonsense and get the ship of state back on course? First, we need to throw the bums out. (This is hardly a new idea.) All the bums, not just a few. Most are ignorant; some are imbeciles; and Lord knows they are all corrupt. They are, to a man (and woman) unfit for public office. They have no place deciding the future of what was once the world’s greatest nation. They have no place deciding my future, or yours.

Nothing will change unless everything changes. We need a new political system. The old system is broke; indeed, it is beyond repair. Like the Founding Fathers, we need to start from scratch and outline a system of governance that really is “of the people, by the people, and for the people.” A good place to start would be a new Constitution. And a new economic system, not a contrivance of the banksters designed to fool the people into surrendering the economy to a class of economic parasites. The new social construct, which for lack of a better name I call The Commonwealth of American States, must have a central bank which belongs to the people, not the international financiers.

We need to eliminate the pervasive influence of the Synagogue of Satan. We won’t make this hypocritical claim from the back of currency adorned with Satanic images and Freemason symbols (including the all-seeing eye of Horus atop the pyramid of Gaza.) The first thing we need to do to demonstrate the new direction of the emerging political order is to remove all the Satanic and occult symbolism from the Great Seal of the United States, U.S. currency, and all public buildings.

In the future, when we say “In God We Trust” we will mean it. Right now, the U.S. currency is so adorned with Satanic and occult images that the bills should be inscribed with “In Satan We Trust” (Adding a rainbow flag would drive the point home, removing all doubt (if there is any) as to what America really stands for today.)

We need to work within the existing political system to avoid the anarchy of a civil war (which will assuredly be anything but civil.) If we can, that is…. We need to start at the ballot box. This will not be easy. The system is rigged and resistant to change. I doubt you could find even a single American who believes the elections are not rigged, and that the process is fair.

Let’s face facts: the CIA has undermined more than seventy democratically elected governments by rigging elections or by installing authoritarian strong men or military juntas all subservient to international financiers and corporate interests. Stuffing the ballot boxes is second nature to the Deep State operatives and the nation’s security services. It’s only natural that the shadow government would play by the same rules in the Land of the Free as it does in all the other countries which have come under the thumb of the Anglo-Zionist Empire.

So where do we start? Here’s an idea. At the next election (remember, it’s rigged anyway) make a meaningful choice while making a statement. Choose “none of the above.” (Note: voters will have to use the provision for write-in candidates if such provision exists at all in their locality. As pointed out above, the system is rigged, and is resistant to change.) Or, to quote the former First Lady, “Just say no!”

With regard to the economy …. Well, the economy cannot be saved. The economists and the politicians have made quite a mess of things. But this is not as bad as it sounds. A functional emergency economy that will give us time to rebuild the nation’s finances, business, and industry on a sound footing can be put in place with a stroke of the pen. That’s the easy part. The hard part is getting rid of the financial parasites that have such a strangle-hold on the nation’s economy and exercise total control of America’s political system.

The demise of the American empire will be welcomed by all of the people of the world, the majority of whom see the USA as the greatest threat in the world today. The Anglo-Zionist empire, which has brought death and destruction, suffering, and moral decay to the entire world, will never be rebuilt … and the people of the world can breathe easier for it. Still, with hard work, the American nation can be rebuilt as a productive society based on sound values — Christian values. We really do owe it to the children to give our all to make this happen.

(CHS 12-17-2023 1315 -0500)

———-

The Other China Shock: How Surging Chinese Imports Transformed Global Agriculture
Posted on November 19, 2023 by Lambert Strether

By Casper Worm Hansen, Professor of Economics University Of Copenhagen, and Asger Wingender, Associate Professor of Economics University Of Copenhagen. Originally published at VoxEU.

China’s emergence as the world’s leading manufacturer has created headlines for decades. Scores of research papers, policy papers, and newspapers have documented what shiploads of cheap Chinese goods meant for manufacturers, workers, and consumers elsewhere (see Assche and Ma 2011, Acemoglu et al. 2014, Hombert and Matray 2015, Marin 2017, Feenstra et al. 2018, and Rodríguez-Clare et al. 2022). To feed its manufacturing industry, and economic development more broadly, China became the world’s largest importer of fossil fuels and minerals. The black curves in Figure 1 clearly illustrates the relentless rise of Chinese manufacturing in terms of both exports of final goods and imports of inputs. Also visible in the figure is another, less publicised shock to the global economy: after joining the WTO in 2001, China quickly went from being a net exporter of agricultural products to being the world’s largest importer. China currently imports more than 10% of all internationally traded agricultural goods, and more than 5% of global agricultural production.

(Chart): Figure 1 China’s trade in agricultural and non-agricultural goods

Note: Agricultural import is the dollar value of Chinese imports of agricultural goods relative to the total value of internationally traded agricultural good (green curve). The other variables are similarly defined. The vertical line indicates China’s accession to the WTO in 2001.

That China as a consumer of agricultural products has drawn far less attention than China as a manufacturer would strike an observer from the 1990s as odd. With its large population and its increasing taste for meat, it was a legitimate concern whether global agriculture could satisfy increasing Chinese demand. “Who will feed China?”, asked Lester Brown in an influential article of the same title (Brown 1994). In the article, later expanded into a bestselling book with the subtitle “Wake-up Call for a Small Planet”, he predicted that with just 0.08 acres of grain land per capita, and little room for further expansion, China would soon have to import large quantities of food (Brown 1995). Farmers around the world would struggle to expand supply to meet Chinese demand, Brown warned, and the resulting steep increase in global food prices would be disastrous for the world’s poor.

With the benefit of 30 years of hindsight, we revisit Brown’s question in a recent paper (Hansen and Wingender 2023a). How did the world manage to supply China without apparent disastrous consequences for the world’s poor? And what about the broader question of how global agriculture adjusts to large demand shocks? The empirical literature contains few answers, which may seem surprising until one realises how hard it is to disentangle cause and effect. Trends in global demand are usually gradual and intertwined with demography, technical change, and other factors simultaneously affecting supply, not to mention that supply growth by itself may lead to higher demand. But in this particular case, quirks of Chinese trade policies allow us to discern the causal effects of a large demand shock to global agriculture.

….

The original article contains charts and graphs which do not render in text format. See the original article in HTML at:

URL of Naked Capitalism blog post:

URL: https://www.nakedcapitalism.com/2023/11/the-other-china-shock-how-surging-chinese-imports-transformed-global-agriculture.html

URL of original article (with footnotes) at VoxEU:

https://cepr.org/voxeu/columns/other-china-shock-how-surging-chinese-imports-transformed-global-agriculture

(CHS 12-18-2023 1140 -0500)