Prosperity from U.S. Shale Revolution Spreads Overseas to Poor Indian Farmers Growing Guar Beens

ByStephan Dube:In recent years, natural gas production has increased significantly in the U.S. As a matter of fact, this source of energy is now more accessible and cheaper than 30 years ago. Shale gas discoveries proliferated in North America as hydraulic fracturing and horizontal drilling, a relatively new technology, allowed an efficient way to extract shale gas, producing a cheaper source of energy than oil.

It has been called the biggest wave of human suicides in recorded history. Every 30 minutes a farmer in India commits suicide, crushed — say human-rights activists — by debt, moneylenders and the destructive policies associated with the introduction of expensive genetically modified cotton seed. Prince Charles has spoken of the “truly appalling and tragic rate of small farmer suicides in India, stemming in part from the failure of many GM crop varieties.” Britain’s Daily Mail called it “The GM genocide.”

When uncertainty reigns, investors all over the world turn to gold as a safe haven. But some countries are starting to take issue with their residents’ preference for storing wealth in gold bars, rather than bank accounts.

When uncertainty reigns, investors all over the world turn to gold as a safe haven. But some countries are starting to take issue with their residents’ preference for storing wealth in gold bars, rather than bank accounts.  

Not long ago, quinoa was just an obscure Peruvian grain you could only buy in wholefood shops. We struggled to pronounce it (it's keen-wa, not qui-no-a), yet it was feted by food lovers as a novel addition to the familiar ranks of couscous and rice. Dieticians clucked over quinoa approvingly because it ticked the low-fat box and fitted in with government healthy eating advice to "base your meals on starchy foods".

Here's another example of how the shale revolution and energy prosperity are working their way down the supply chain, and revitalizing the support industries that supply materials, inputs, and drilling equipment to the shale industry.

I've often noted how trade disputes have a habit of reproducing in other jurisdictions, and with the United States and China duking it out over trade in solar panels and other "green" technologies, it was only a matter of time before other countries got into the mix.   But even I'm a little surprised at just how fast India has gotten involved:

You might find it hard to believe, but high prices of onions can trigger the fall of the government in India. In 1998, a supply side shock led to a sharp increase in onion prices in the country and most notably, in the state of Delhi. In the following elections, the ruling party was routed in large part due to its failure to control the price of onions in the capital state. Today, onion prices in India are up again, rising by over 100% in just three weeks in December.