by Chas Bonner
SAFETY IN AMERICA
Today we are bombarded by information that is downright scary, whether it be economic, social, criminal, or other. What seems to be rare is good news, and that will be our focus today.
The July 19 edition of Newsweek magazine carried an article about Business/Recession. It suggested that government has run out of ideas for rebuilding the economy, but that business and consumers are undertaking the job. Despite daily news, jobs are slowly increasing, economic output increasing, home value decline slowing, and consumer spending again rising. Just as important, the economies of the rest of the world, with exception of Europe, are growing even faster than ours.
Corporate America’s balance sheet has never looked stronger, corporate earnings are increasing, and cash flow increasing at an even higher rate. Sadly, corporations are not spending that cash load, primarily because they don’t trust government to hold the line on existing laws and regulations. Business needs and likes consistency; our current administration is about “change.”
For agriculture specifically, there are definite pluses. In the past 5 years, purchases of almonds by China have risen eightfold. Other commodities have similar stories. The middle class in China, India, and all BRIC countries is becoming larger by the day, and middle classes become big consumers. This global growth also creates foreign investors, and safety is a key element in all foreigners’ investment decisions. America is one of the few places on earth where intellectual property is tightly protected, where the rule of law is consistent, and where fears of expropriation are non-existent.
Safety in America bodes well for our farming communities and farm values despite any hiccups that may occur in the short-term.
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