This is pretty obvious, but I'm just not hearing it from the pundits. They keep mouthing economic platitudes about the market finding a new level, short term fluctuations, and the like.
Buy land. They ain’t making any more of the stuff.
(Will Rogers 1879—1935).
This is the axiom that we need to consider when looking at the increasing price of food. That and, of course, the fact that some mistaken (stupid?) politicians have been convinced that the way out of the fuel shortage is to convert food stuffs into fuel for cars.
Food is going to get more expensive, fuel is going to get more expensive.
I have no doubt that this is correct. People, and politicians, need to understand and accept this and work out how they are going to respond to the impending crisis. I'm guessing that this is going to lead to similar the stagflation of the 1960s or the world-wide recession of the 1930s. So what are the likely impacts?
The poor are going to become poorer. In the developed world this is going to be uncomfortable and unpleasant. In the developing world this is going to be disastrous - watch for the Four Horsemen: War, Famine, Pestilence and Death. Please don't think I'm predicting the end of the world, but these four nightmares are the synthesis of wisdom from thousands of years of experience of poverty. You might like to note that only death is named in the Christian bible.
The middle class
The middle classes have two basic options:
- try and keep up, or
- re-evaluate and adapt.
Those who try to maintain their current life style are risking running up huge debts.
Those with considerable wealth run a risk of becoming exposed to the masses. At the moment, their difference is not that obvious. As we drive past their automatic gates we don't feel that jealous. As the gap between wealth and extreme poverty expands exponentially over the next few years they will become more obvious. Painfully obvious. Plus of course, the wealth of many of the people is built on the current economic model. If you are wealthy, my advice is get out of the system now. They won't listen, of course, as I guess that for most of them making money is what they do - and they won't change.
I have a low opinion of politicians. They seem stuck in a model that only looks at the next election at the most. They need to panic. There is cause for panic. Their model is bankrupt. Bankrupt financially, morally and economically. We need a change.
I'll close with a quote. Farewell to Kings...
When they turn the pages of history
When these days have passed long ago
Will they read of us with sadness
For the seeds that we let grow
We turned our gaze
From the castles in the distance
Eyes cast down
On the path of least resistance