Poor Us: The Great Depression 2.0

April 22, 2009

O Zud, We Broke Mongolia, Too

Filed under: Reduced Circumstances — Tags: , , , — debacled @ 6:04 pm

Cashmere couple The Global Downturn Lands With a Zud on Mongolia’s Nomads – WSJ.com Falling demand for cashmere among recession-hit shoppers in the West is cutting into earnings among nomadic herders in Mongolia, whose goats produce the soft fiber used in high-end sweaters, scarves and coats. The result: herder loan defaults.

Mongolians are calling the current situation a financial zud, invoking a local term for unusually harsh winters that devastate herds.

WSJā€™s Josh Chin’s photo shows the glut of meat flooding Mongolian butchers since herders started to sell off their livestock to make payments on overdue bank loans

Cashmere kasimiya_jpg Mongolian butchers swamped with meat as herds are sold to pay debts, photo by John Chin WSJ

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