Thursday, April 11, 2013
Oil and Agriculture
Nice music video below that illustrates a pretty good story showing how petroleum is so important to the cost structure of our agriculture and hence much else. I'd hate to have to pay the diesel bill for all that goes on in this video.
It's harvest oriented and I know it's only planting time but hey you gotta think ahead...
Building upon the recent posts by Wray and Mosler recapping the 70's and 80's and how the oil monopoly played the major role in perceived so-called "inflation" in prices exhibited during that era.
Lyrics from the chorus in the second song in this video:
It's harvest time in this little town
Time to bring it on in and pay the loans down
Fill the diesel tank up and make another round...
It continues to amaze how the artists among us can simply illustrate what is really going on.
Perhaps skip the macroeconomics, the redneck who wrote this song may be telling you all you need to really know.
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3 comments:
Amazing how many important progressive economists started out as agricultural economists -- for instance, John Kenneth Galbraith or indeed Bill Mitchell.
Well, it's a big mistake that our whole production system (not only agriculture) is based off carbon energy and specially oil.
Take for example my own country, Spain, regardless of all the problems with the financial system, we could manage the situation of our own credit markets even with the constraints of the euro and the political problems it poses right now if it weren't because the huge trade imbalances and CA problems due to the imports of oil and NG.
But here we are, with our governments 'investing' in old technologies (thanks to lobbies) and neglecting investment and research in other things because ww 'have run out of money'.
Right, Ignacio. I think that we are spending too much time here focusing on money and not enough on energy, which is the elephant in the room in more ways than one as we will learn as the vise of global warming closes on us.
The monetary, energy, environmental, ecological and evolutionary economists economists need to get together and cooperation on designing and implementing solutions.
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