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.

WSJ’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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