Australia’s food bowl has been wiped out and we are a few months away from actual food shortages.  Australia – supposedly the “food bowl” of the world, and according to Rudd able to sustain 50 million people by 2050 – is about to experience a food crisis.

How predictable.

So let’s go through this briefly once again.

Fractional reserve banking and central banking promotes hyper-inflation in housing and property (collateral of the banks) and this distorts prices.  Residential housing sprawl occurs and food production gets pushed further and further away from population centers. 

People want to live in temperate climes (where food also happens to like to grow).  This “tension” is resolved by modern banking very easily – farmers lose, city-dwellers win.  Farmers are pushed further and further away from the core population areas, into marginal dry land or land that is simply unsuited to long term farming.  The most fertile soil in the best climate for farming is now suffocating under the concrete jungle of the CBD in most major cities of the world.  Ironic.  But true.

A weather events occurs and all of a sudden everyone is f*cked: (1) the city dwellers don’t have access to a reliable food supply anymore, although they can still get a nice suntan at the beach (great for anorexics but bad for the rest of us!) (2) farmers are wiped out (3) concentrated farming makes the whole of society vulnerable (4) modern banking actually caused the problem.

There is no solution.

The price mechanism will not be allowed to work.  Food needs to be more expensive and housing needs to be less expensive.  Leverage in the banking system needs to be reduced (dramatically!) and house price inflation needs to be brought under control.  Farmers need to be able to compete for land at the margin – where city and country meet.  They haven’t been able to compete for two generations.

The only long-term solution is to flee.   This is madness and it can only get worse.

Argentina, Chile, Brazil.  Food exporters with “primitive” banking systems.  That’s where we need to go now. 

Any country with a “modern” banking system is doomed.  Because it is destroying farmland at a rate unprecedented in human history.

I’m waiting for the next big blow up to occur and then I’m out of here.  I’ve had it with this stupidity.  The bankers and crazy governments are pushing us to the edge of societal collapse.  They won’t be around the solve the problems for us.  They are the problem.

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