While we are watching a lot of funny money go up in smoke and Malls hawking a lot of Chinese Products we don't really need foreclosed on, one portion of the economy still seems to be running, that would be the food production and distribution apparatus. Demand for food is relatively inelastic, people continue to buy it as long as they have some money. Its the last thing on your list you stop buying of course.
Given this fact, until we reach the point where more than say 50% of the people are unemployed, there still will be a market for food, albeit a smaller market. It would seem to me that the last thing to crash here in the cascade failure is the producer-distributor-consumer food chain.
In the original Great Depression, did food ever COMPLETELY disappear from markets? No, but of course many people went hungry because they didn't have money to buy the food. The issue of main import in the US is how you go about distributing food to people who do not have money? This of course gets resolved nowadays with Food Stamps.
I'm going to hazard the guess that what we will see over the next couple of years is a vast ramping up of the Food Stamp program. This amounts to a Goobermint Bailout of the food industry at the consumer end. The rest of the world of course doesn't get Food Stamps, they still have to buy our food with some money we will take, or with Barter. So we might send food to the Saudis as long as the Saudis send Oil back to us. We still need at least some clothing, so we might send some food to the Indians if they send some underwear back to us.
So far, despite the massive collapse in the paper wealth of the world, the basic food economy still seems to be running, although the poorest countries of the world are now facing starvation scenarios because they have nothing to trade that would get them enough dollars to buy food.
As long as TPTB get food to the masses here and some form of shelter, it probably will stave off a mass revolution for a while. The question would be, how long can the food economy be propped up through a Food Stamp program, and what will people do with their time without jobs? Will simply watching TV and surfing the net keep them busy enough not to riot from boredom?
This post is a result of the fact that I still see no sign that any food products which might be affected by the Global Shipping slowdown have disappeared from our grocery shelves. Still getting Rack of Lamb from Australia. Still getting Tomatoes and Avocados from Mexico. Still getting Cheese from France. All perishable items which had to be shipped here in the last month. So far, this sector of the economy is still running worldwide.
Reverse Engineer