First Oil And Now Food

Yesterday the United States was in crisis, today the world is in crisis. First it was oil and now it is food.

Years ago when I was a portfolio manager, economist would talk about "the engine", that the United States was in pulling the economy of the world. Our economy was strong and the rest of the world looked to the United States as the engine behind economic growth for the rest of the world. Then there were two super powers, the United States and the Soviet Union. But, no one thought the Soviets were anywhere near the U.S. as an economic powerhouse. Our system was the model and students came to the United States to study in our universities and observe our society.

As a nation, we could run the table economically. Oil was cheap, gasoline and diesel were cheap, natural gas was very cheap. We had an educated labor pool and capital flowed in to the country. Our financial markets were known around the world by the name Wall Street, and nearly everyone stood in awe of our economic strength. We were on top of the world in so many areas, and most of us enjoyed a great standard of living. Businesses and corporations were run by people, not computers.

But somewhere along the way, things changed. Numbers took over and people and their families became just numbers to the people that studied the numbers, and the bottom line became the only religion in town. Add to this the fact that the political leadership, because of the growth of TV, (a TV in nearly every home), needed to raise larger and larger amounts of money to get elected to office and to get reelected to office. Politicians became perpetual fund raising machines. Business recognized this fact early on as business was in the best position to observe the growth in revenues of corporations that sold air time.

Money, big big money corrupted the political process in the United States. Political success was measured only by winning. A new era was upon us. Since the 1950’s the United States has pissed away, a little each year, its chances to build the country of the future. There are no do overs in this game.

First it was oil and now it is food, the critical events just keep coming one after another. There is no leadership anywhere to be found in sufficient numbers to turn the direction we are headed. One man or woman, even in the highest leadership position, President of the United States, is not enough now to turn the tide, much less make up for opportunities lost.

We are in more than a mild economic decline, the world is watching a super power in decline. While we may think that many may cheer this event, still many fear and realize what this really means. The United States like all nations can not be all things to all people all of the time. Even the United States, the great economic engine of the past, has limits to its strength and resources. The world has good reason to fear the vacuum left by the demise of the world’s truly last and only economic super power. Where and when will that new economic super power emerge?

Advertising is a great thing, but like anything else, it can be abused. Unfortunately, the American people have been fed a steady diet of crap, and now unfortunately they are paying for the poor choices they made. Perhaps it is not too late for us to turn the economy, but also the nation around and point us in a wiser direction. Stay tuned.