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  • From: Clansgian AT wmconnect.com
  • To: homestead AT lists.ibiblio.org
  • Subject: Re: [Homestead] big agri-biz
  • Date: Thu, 18 Dec 2008 20:24:48 EST


> >The question might need to be asked if the gov't stopped dishing out the
> hand-outs, would big Ag continue to produce at reduced profits?
> >Isn't that what James(?) was talking about last week?

I read the article with interest. The conclusions are a non-sequitor.

We already have several paradigms to consider. In this country just as soon
as investing money in food commodities was less profitable than investing in
ethanol, all the money, times, land, resources, investments began to go for
biofuel production. Food prices went up, not because of a consensus nor
cartel
agreeing to higher prices, but rather food was taken off the market because
something else competed for all the resources needed to produce it, including
loans and futures.

Look at Zimbabwe. Just as soon as the complex financial network that
supported the farms with loans and a formal commodities market broke down,
it didn't
matter how much anyone offered for food - there wasn't any. Those holding
the farms didn't say, "Well, let's grow what we can, after all we can charge
pretty much whatever we damn well please..." Instead they farms fell fallow
or
fell into ruin entirely.

James




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