Sunday, November 25, 2018
Sunday, November 18, 2018
There's a reason that few people are thinking about world grain supplies. Last year saw record worldwide production of grains and record stocks of grains left over.
But this year worldwide production slipped about 2 percent, owing in large part to the plunge in Australia's production caused by an ongoing severe drought. Production is expected to fall 23 percent. Fortunately, in our globalized grain markets, this hasn't affected overall supplies or prices very much as grain stocks are high and supplies are mobile and shipped all over the world as needed.
But Australia is the world's fifth largest wheat exporter, accounting for nearly 9 percent of the total in 2016 according to the Food and Agriculture Organization of the United Nations. In fact, the top five wheat exporting countries account for 56 percent of world wheat exports. The rest of the world is highly dependent on these exporters to make up the difference between what they grow and what they eat.
Sunday, November 11, 2018
The increasing connectedness of the global economic system has long been touted as the path to greater prosperity and peaceful relations among nations and their peoples. There's just one hitch: Complex systems have more points of failure and also hidden risks that only surface when something goes wrong.
For example, our dependence on cheap shipping to move commodities and finished goods has resulted in a system vulnerable to environmental disruption, particularly climate change, and to rising political and military tensions.
The extreme drought in Germany last summer, the warmest ever recorded in the country, has resulted in such low water in the Rhine River that shipping has been greatly curtailed. Ships can only be loaded lightly so as to avoid running aground. Consequently, many more barges and other vessels have been pressed into service to carry the lighter but more numerous loads along the river. This has driven up the cost of shipping considerably. In addition, fuel tankers have not been able to reach some river ports resulting in scattered fuel shortages. Some industrial installations along the river have had to reduce operations.
The natural inhabitants of the river have also suffered as die-offs of fish and other marine life have spread along the river.
Sunday, November 04, 2018
A frequent critique of the daily news flow is that it is filled with negative events. This is partly a product of the human nervous system. We react very quickly to perceived threats and more slowly to hope of gain or pleasure. Editors and reporters know what will grab people's attention which is why the old adage—if it bleeds, it leads—still applies.
There are, of course, heartwarming stories about miraculous recoveries from illness and injury, rescued animals, and saintly persons doing amazing charitable acts. And, then there is a sub-genre of the feel-good story which I'll call the you've-been-living-in-opposite-land-things-are-actually-getting-better story.
Now as an antidote to the relentless negativity of the news, this kind of story gets attention. And, sometimes we need to be reminded, for instance, that life expectancy continues to rise, child mortality continues to decline, and smoking remains in decline. Humans are capable of making progress by certain measures.