Explaining What?

Everyone quickly increases their Food intake upon a rise in their Incomes, with an incredible resistance to a Return to previous levels when it proves to be only an inflationary increase of short-term exposure (think a short-term advantage creates an image that the Recipients attained a permanent increase of personal Income, which later evaporates under a round of overall Price increases). This is the basic Scenario in China and India, and it has put huge pressure on World Food prices. Then came the Deluge! (An actual real one in the American Midwest), and this article lists the Result. World Agricultural markets have been over-massaged, like Kobe beef, and structural Prices will not come down for quite a while. I estimate that We will have to lose the equivalent of 200 million Customers for Agricultural Products before there is any Price relief, and that Relief will only come in harsh Dietary measures.

An example of the Diet on which more and more of the World will be shoved, can be shown in this article. The EU feels the first effects of a ‘Displacement’ Recession, where Regional Consumers face new funded competition for necessary baseline Goods. The needed elements can still be obtained, but only with impairment of the Price/Profits Markup structure. Previous sustainable Production systems lose Profitability, or the capacity to obtain cheap Operational funding. The instability of the Production systems will remain, until the Profits structure of the new Entrants to the Markets equalize with those of the older Participants. It seems real easy, does it not? The Truth states that economic conditions must alter the Expectations of Millions of Participants in the Markets, and mostly to their disadvantage. It is not a philosophical argument!

Chris Dillow has an innate sense that cheap hooch available to All suffering from economic downturns is incredibly safer, than is not bottling up those angst feelings felt by the Unemployed. A semi-state of Drunkenness can make the hunger of your children, or yourself, more palatable. I have always wondered why the Prohibitionists always arise during Hard Times; Periods best left in a State of mild euphoria. So few People understand that humanity is not equipped to absorb any Shock ‘Cold Turkey’. People need both Companions and Anesthetic on their Road to Hell. lgl