Few things have a single cause, but I think it's not outlandish to hypothesize that potential pending famines could be driven by a fertilizer shortage, driven by Russia's invasion and global economic issues, driven by the pandemic. Maybe this is obvious to those smarter than I, but I'm beginning to have a sinking sense that direct deaths by SARS-COV2 will be a shockingly small minority of total deaths caused by the p…
I doubt it. In as much as they are allowed to function, markets will reward people addressing the shortages with outsized profit. Same as getting through the energy crisis, we can overcome the food crisis, one obstacle at a time. The connectedness of economies is also an advantage. Shipping rates are almost at a 3-year low: https://tradingeconomics.com/commodity/baltic The greatest risk are policies forbidding "price…
It's not that rates are low now, it's that they were temporarily high for three years, during the pandemic shutdowns and backlogged demand from that.
(Same goes for the apparent recession in 2022. That was mostly an artifact of the pandemic numbers, comparing 2022 to a 2021 that was artificially high from time-shifted backlogged demand from 2020.)