Monday, 11 October 2010
What Middle Class?
The Market Oracle has a piece about the USA Middle Class which has its moments although there are a number of things the average UK type might find unnerving.
The difference though is that over here it might be possible for the Coalition to stumble on until 2014 or 2015, assuming The End Of The World will not occur in July 2012 as suggested.
In the USA however shortly there are to be the Mid Term Elections to Congress that might put the nation into a state of political gridlock. As President Obama has not come up to the mark in sorting out the mess, if any man could, then there could be at least two years for the USA to go into continuing crisis.
My feeling is to watch what happens in the corn belt. The small farmers are on their way out. Vast tracts have been given over to producing crops for heavily subsidised ethanol to keep gas (petrol) prices down.
Also, for making into corn syrup to keep the obesity figures going up and for feeding beef, an expensive way of making poor quality antibiotic stuffed protein.
Given the twitchy weather conditions in the USA recently there is the possibility that while crop levels have held up a bad year or two may be due.
If the Russian harvest takes another hit next year, the locusts in Australia have a good time, and all those rains and devastation in Pakistan and India mean major crop shortages, watch out for commodity prices and what could follow.
And be careful where you book your holidays, if you can afford one.