(Subject edited because I realized everyone thougth I might be talking about it happening here - though of course it could happen here. I also added some more quotes from the article relevant to China)
A friend sent me the following and it highlighted the fact for me how quickly we can change the planet.
It also shows how someone somewhere, will always try to make money from misfortune - "Fortune passes everywhere." - Frank Herbert "Dune"
The Return of the Dust Bowl
By Chris Mayer
February 10, 2007
A darkness blacker than night is how it was often described. At least one could pierce the black veil of night. Not so with this kind of darkness. It was opaque. People were afraid. It was only midmorning. They had never seen anything like it.
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It was Nov. 11, 1933, Armistice Day, South Dakota.
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The great black blizzard of 1933 destroyed acres of farmland stretching from the Texas Panhandle all through the Great Plains and clear to the Canadian border. The following day, the skies darkened over Chicago. A steady stream of filth fell on the city like snow. Even people as far east as Albany, N.Y., could see the menacing dark clouds roll their way across the horizon. That winter, red snow fell softly on New England.
<snip>
Yet 1933 was "only a prelude to disaster," as Frederick Lewis Allen wrote in his panorama of the 1930s, "Since Yesterday".
Unlike a natural disaster such as a hurricane, "There was a long story of human error behind it," as Allen wrote. After World War I, there was a great demand for wheat. Mechanized farming also became common. Farmers tore up the sod that covered the plains and farms expanded. Production soared.
The Plains were a region of high winds and light rainfall. Yet the 1920s were pretty forgiving in terms of drought. There were warnings, though, such as stories of topsoil blowing in Kansas after a stretch of dry hot weather. But in the 1930s, we had some real drought in these places. The combination of drought and desiccated farmland would create the epic dust storms. "Retribution for the very human error of breaking the sod of the Plains had come in full measure," Allen wrote.
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As Lester Brown, author of Outgrowing the Earth, explains: "With little vegetation remaining in parts of northern and western China, the strong winds of late winter and early spring can remove literally millions of tons of topsoil in a single day soil that can take centuries to replace." These dust storms are so strong that they can peel the paint off cars. They often force the closure of schools, airports and stores even in places as far away as South Korea and Japan.
As with the Great Plains, northern China is dry and farmed intensely. Already, China's farmland is turning to desert at an alarming rate. Estimates peg the loss at more than 900 square miles per year. Chinese farmers struggle to meet the demands of the Chinese people. Meat production, for example, has grown at an 8% clip since 1980. That's the biggest increase of any major meat-producing country in the world, yet it still falls short of demand.
<snip>
By some estimates, we'll need to produce about 136 million tons of grain in 2007 to prevent grain stocks from falling again (they fell in 2006). Yet annual increases in grain production have averaged only about 20 million tons since 2000. That gives you something of a snapshot of the hurdle in front of us.
The investment conclusion from all this seems to be that we are in a long bull market for grains. Expect the prices of corn and wheat to keep rising. Expect the price of meat to rise. It also seems that fertilizer producers, such as Agrium, should continue to do well. Other ancillary ideas also come to mind — shippers of dry goods (i.e., grains) and manufacturers of farm equipment. If you followed along with my Mayer's Special Situations letter, for example, you're up 40% since June on irrigation equipment maker Lindsay Co.
The potential for another 1930s-style Dust Bowl only adds to the power and durability of these trends.
Full article here -
http://www.dailywealth.com/archive/2007/feb/2007_feb_10.aspOr maybe we should all start investing in body bag manufacturing.