Drought the Political Earthquake in China, US and Europe

China is in a grip of drought, even River Yangtze basis has dried up with no rainfall and only about 30% power generation is possible. The US who is so much proud of its Colorado River has dried up. It serves 40 million people and irrigates millions of acres of fruit and vegetable production. The famous Hoover Dam has only 30% water left and elsewhere dry and parched land is catching fire. The worst of all - Europe, where UK, Germany, France and other tiny countries are suffering the after effects of this year's drought. This is in addition to the NATO war in Ukraine and the possible interruption of Russia's gas supply. This will end the war very soon.

It is all blamed on La Niña impact where sea temperature dips by a degree every three or four years and creates a geographic impact, the likes of which are visible in today’s drought. In previous hundred years or so, the La Niña used to impact mostly Indian Monsoons, but this year the rains except in the Gangetic Valley, where 40% or less rain has fallen (but adequate), otherwise everywhere else there is a 10% of excess rain. As a result, the food supply in India is secure.

The economic repercussions of the La Niña drought in China, the United States and Europe are considerable. China's GDP is set to grow at a negative pace for the first time in 30 years. The same will happen for Europe and the United States, even though their negative statistics are camouflaged with other good news elsewhere. But sooner or later, the impact of drought must be compiled and published. There is unlikely to be a good growth. India will continue its 7-8% growth. All the best to Modi.

The good impact of the drought is that China could not invade Taiwan as their military, although overconfident was put on hold with bad economic news both on farm front and as well as power shortage. Moreover, US, the main customer of everything China manufactures told them to stop and they stopped.

The war in Ukraine will end when Russia cuts off gas supplies to Europe in the coming winter and allow them to shiver. All those guns and missiles shipped to Ukraine will come to dead halt when the factories cannot produce ammunition and people back home are shivering together with inflation. The US maintains its current outlook first by keeping much of the public busy with the war fight, inflation fight and Congressional Pelosi/Trump fights. The drought impact will be driven home when everything manufactured by US either becomes expensive or completely unavailable. On the other hand, since they control the world currency transactions hence could manipulate the things to their advantage.

Gone are the days when opinion making photos of India’s parched land and hungry people was common in the Western Media. Now we are waiting for similar photos of the Chinese or the white man in the West hit by drought.

Comments

Popular posts from this blog

Great Indian opportunity to kick Chinese lost

Start of the end of China’s Domination of the supply Chain

We are back to Obama Administration