3 GFCs

What is GFC? it stands for Global Financial Crisis. The term is popular at the moment, since stocks around the globe have slumped more than 50% within months. However, The "F" not only stands for "Financial", it's also for "Fuel", but far more importantly "Food".

There is a major Food problem in poor and developing countries, such as in Africa and Pasific. Hawaii suffered the first. The old regime was overthrown by a massive people movement caused by food crisis. Who's next?

Financial crisis can drag some minor economic powers bleeding to death. Here are the big pictures:
- Investors are pulling out their money from developing country, causing monetary crisis to fund their economy.
- Currency rates are falling, people have to pay more for imported goods. Unfortunately, some poor countries are food importers. Hence, food prices soar and people cannot afford them. Consider what had happened in Zimbabwe? 3.5 million for an egg!
- Local richest people buy more foreign currency. And this is economical, since their sense of survival tells them to retain their wealth by any means (of course in a legal corridor). Yes, they are panic.
- Much mediocre people lost their jobs and it becomes difficult to find the replace in a short time. Suddenly, food is beyond their reach. What comes next? chaotic behaviour.

So, have you notice how hard our current regime to stabilize rupiah, thus making our primary needs affordable?

When financial crunch touches the economy, it is the real crisis for most of us.

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