It turns out that China, not the United States or Israel, presents the greatest existential threat to the Arab world, and through no fault of its own: rising incomes have gentrified the East Asian diet, and, more importantly, insulated East Asian budgets from food price fluctuations. Economists call this “price elasticity.” Americans, for example, will buy the same amount of milk even if the price doubles, but they will stop buying fast food if hamburger prices double. East Asians now are wealthy enough to buy all the grain they want. If wheat output falls, for example, because of drought in
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