Monday, February 7, 2011


Check out the Front Porch view on Egypt.

Note the author's assertion that there is plenty of food available. He says that Goldman Sachs is busy creating CCO's similar to the bubble-inflating CDO's of our most recent financial crisis. In other words, having had the bubble of housing burst, the financiers are blowing a food bubble to drive up commodity prices.

I have immediate doubts about this scheme going very far. People do trade in commodities, but commodities, for the most part, are subject to many more natural fluctuation than real estate. A person can think of investing in a house. Only a fool soon to be parted from his money invests in pork bellies. There is only so much land. Pigs just keep on coming. This is more akin to the infamous Dutch Tulip Bubble of 1637.

In any case, being able to feed one's self independent of the corn crop in Iowa continues to be a highly recommended course of action.

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