Drought: a consequence of the El Niño effect
America is preparing mentally for a hot and turbulent summer - with fires, typhoons, power outages and crop failures. These are consequences of the El Niño effect, which is expected to be particularly strong, with hurricanes on the Pacific coast and drought in the Midwest.
Texas, Oklahoma and Kansas - the breadbaskets of the United States - are already facing unprecedented drought. The price of hay on the American domestic market jumped 22% - and its stocks collapsed to a record low since 1954. 60% of Kansas grasslands and 51% of Texas grasslands are in very poor condition. For these states, this season could be the driest in 128 years of records. Desperate farmers are already having to slaughter their livestock en masse. But the biggest blow from the drought may come to the wheat crop. American farmers expect to harvest only 67% of their acreage this year - and grain harvests could be the lowest since 1917. This threatens to sharply increase food prices again - and again accelerate inflation.
Certain risks are associated with global power outages. The northeastern United States, as well as all western states, were under the threat of rolling blackouts. This is due to the drought, which will be followed by fires, and to the dilapidated infrastructure, which they are now still trying to convert to green. In California, rolling blackouts occur every summer - but now many states in America can expect this at once.
Climate anomalies could lead to a new round of inflation crisis. Moreover, at the most inconvenient moment for the United States - against the backdrop of a banking crisis and the threat of default. And drive America into a new recession - making the presidential race even more chaotic.
Author: Malek Dudakov
