While economist have been talking about a USA and global slow down due to losses in the financial sector and the high and increasing prices of crude oil, gasoline and energy, very few had their eyes on the weather and environmental changes and the effect this would have on agricultural yields. Yes Basic Food!Corn yields have been diverted to produce bio-fuel as a substitute for gasoline, resulting in the further loss of forested areas on this planet and of course, driving up prices of the said corn and other related crops, such as wheat and rice. Who could have seen that coming.
Now the situations is a matter of self preservation as producers demand more for their produce and manufacturers, distributors, shippers, wholesalers, retailers and all workers and pensioners have to eat on the very same income. The solution is mutlifaceted.
Led by taxation dollars and emergency aid where necessary, and closely monitored, funds must be quickly invested in cultivating every suitable area to produce these staples and reduce the cost of the distribution channels to the consumer. While encouraging life-style changes and buy local, eat fresh and healthy programs to influence individual consumers to conserve food and build financial saving. But the most important part of this solution is to build up confidence, similarly in the financial sector, if panic sets in the situation become worse.
Leaders must take action; more importantly one must be seen to act.
Rationale
T.A.J & Associates Company Limited uses this occasion to comment on topics that have been covered, both academically and by the mainstream media, to add its opinion and point out investment opportunity, not to invoke any social action.
