Monday, March 26, 2012

Market Commentary for the week of March 26, 2012

Fruits and nuts.
Hard data hasn’t been collected, but it’s a safe bet that we waste more food and energy resources than we think.  In a given year, think about the amount of waste we generate, and the potential for harvesting those products to maximize their use.

A “green boom” is a common dialogue amongst some communities but, by far, not universal.  In fact, green technology is often a luxury that only wealthy nations can talk about, while other global regions suffer from arid landscapes, non-potable water, and serious shortages of natural resources.  In some places, regional shortfalls have pitted farmer against farmer, country against country.

And yet with so much money being wasted, there are no permanent solutions for spreading the bounty.  Alternative energy and agricultural science are in their gestational periods, historically, and far from being the immediate solution to environment mis-management. 

I have written before that the most valuable natural resource we need to mine is not energy, but water.

Good for me, bad for you.
Today, one of the biggest changes we see, literally, on our planet is the evaporation of lakes and streams.  Its impact upon harvestable crops worldwide is staggering.  The stakes are getting higher as populations migrate for political and economic reasons.  To them, a gallon of drinking water is more valuable than an ounce of gold.

Those who own the resources, however, are living conspicuously.  Irrigation and abundant water aquifers feed plentiful dollars into those regions that can sustain crops and build vibrant communities.  Lurking in the shadows, always, is the notion that a cornucopia of food and water is a gift, not a given, whose absence can be the death knell of a region.

Efforts to maintain this plentitude of resources costs money.  A community that has a robust agriculture is the envy of its neighbors, particularly those that are without such an infrastructure.  As prices gyrate based upon largesse and speculation, wealth creation similarly gyrates and migrates.  By 2030 we might see an inflation rate increase of 50% or more from today’s values for a basket of commodities.  Nations will surely be affected by cost creep in the next few decades.  Politicians and world leaders must also learn to deal with these realities when shaping budgets and policies with which to govern.

Profit…at any cost.
Wall Street seems only to pay modest attention to these conflicts, focusing mostly on how to profit from shifts in cultural and agricultural demographics.  While scientists have one eye on the statistical, climatological and geographical data, Wall Street’s bankers, theorists, traders, and regional vice presidents have the other eye focused firmly on money-making product offerings from which they can supply the well-to-do with arm’s length participation in “solving a global crisis.”  The message is clear, though:  no amount of discussion or conferencing can salve the conscience of a profit-over-people mentality.

By robbing Peter to pay Paul one loses the social and moral high ground that creates real value for the planet, and which respects all citizens equally.  A sharp turn in focus by all players (institutional, cultural, moral, political) is required before this issue can assume front-burner status.

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