Drought Brazil Creates Three Prong Disaster

Drought Brazil Creates Three Prong Disaster

William Church | CCIM News

The drought has crippled last year’s and the current corn crop and is predicted to continue through this year. This produced triple trouble for the once-great South American economic powerhouse.

The Climate Change multi-year drought in Brazil has caused a triple sonic boom on the economy.

The drought has crippled last year’s and the current corn crop and is predicted to continue through this year. This produced triple trouble for the once-great South American economic powerhouse.

First, it will starve Brazil for hard currency since corn is a major export crop. This is similar to the impact that failed crops have had in Zimbabwe.

Second, it will cripple the domestic poultry industry and increase the price of chicken a major staple of the Brazilian diet.

Third, it will force Brazil to import larger quantities of corn and soak up much-needed dollar reserves.  All of this is happening at a time when there is a worldwide shortage of dollars.

On the flip side, this is good news for United States farmers who are having a bumper year which coincides with increased value of the US dollar which will improve USA balance of trade and GDP.

This is happening, like Zimbabwe and South Africa, at the same time as significant political upheaval and will shape the future political landscape.

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