The Food Shortage Solution in Your Own Backyard

While the global food systems we depend on come under increasing strain, there’s a solution to the growing crisis that most Americans can find in their own backyards–or front lawns.

A confluence of crises—lockdowns and business closures, mandates and worker shortages, supply chain disruptions and inflation, sanctions and war—have compounded to trigger food shortages; and we have been warned that they may last longer than the food stored in our pantries. What to do? 

Jim Gale, founder of Food Forest Abundance, pointed out in a recent interview with Del Bigtree that in the United States there are 40 million acres of lawn. Lawns are the most destructive monoculture on the planet, absorbing more resources and pesticides than any other crop, without providing any yield. If we were to turn 30% of that lawn into permaculture-based food gardens, says Gale, we could be food self-sufficient without relying on imports or chemicals. 

Continue reading

Rather Than Sink Main Street by Raising Interest Rates, the Fed Could Save It. Here’s How. 

Inflation is plaguing consumer markets, putting pressure on the Federal Reserve to raise interest rates to tighten the money supply. But as Rex Nutting writes in a MarketWatch column titled “Why Interest Rates Aren’t Really the Right Tool to Control Inflation”:

It may be heresy to those who think the Fed is all-powerful, but the honest answer is that raising interest rates wouldn’t put out the fire. Short of throwing millions of people out of work in a recession, higher rates wouldn’t bring supply and demand back into balance, a necessary condition for price stability.

The Fed (and those who are clamoring for the Fed to raise rates immediately) have misdiagnosed the problem with the economy and are demanding the wrong kind of medicine. …

Prices are going up because crucial inputs—labor, electronics, energy, housing, transportation—are in short supply. Normally, the way to solve this imbalance would be to give workers and businesses incentives to increase their supply. …

The Fed has been assigned the job of fixing this. Unfortunately, the Fed doesn’t have the tools to do it. Monetary policy works (in theory) by tweaking demand, but it has no direct impact on supply.

Continue reading

The Fed Protects Gamblers at the Expense of the Economy

Although the repo market is little known to most people, it is a $1-trillion-a-day credit machine, in which not just banks but hedge funds and other “shadow banks” borrow to finance their trades. Under the Federal Reserve Act, the central bank’s lending window is open only to licensed depository banks; but the Fed is now pouring billions of dollars into the repo (repurchase agreements) market, in effect making risk-free loans to speculators at less than 2%.

This does not serve the real economy, in which products, services and jobs are created. However, the Fed is trapped into this speculative monetary expansion to avoid a cascade of defaults of the sort it was facing with the long-term capital management crisis in 1998 and the Lehman crisis in 2008. The repo market is a fragile house of cards waiting for a strong wind to blow it down, propped up by misguided monetary policies that have forced central banks to underwrite its highly risky ventures. Continue reading