Even in children’s comic books, bad news sells. That’s what I thought when Maureen and I were watching Spiderman on Broadway recently. For those unfamiliar with the story of Spiderman, a quick recap.
When Peter Parker is accidentally bitten by a genetically engineered spider, Peter ends up having the characteristics of a spider – in that he’s able to exhibit incredible reflexes as well as the ability to generate a web that allows him to fly through the air by attaching the web to various buildings.
Peter begins to take on the criminals during their criminal activity, the reporters for the daily newspaper are unable to get photos of Spiderman, but are able to hear the reports of his good works. As the reporters tell the good works of Spiderman to the editor-in-chief J. Jonah Jameson of the Daily Bugle, a fictional NY newspaper, he does not want to hear it. He tells the reporters “good news doesn’t sell.” He states that Peter must be working in cohorts with the criminals. He slants the news to report that Peter is a criminal that must be stopped at all costs.
Although this is a fictitious editor in a fictitious story, our real life media continues to operate under the guidelines as an earlier post indicated. They continue to report any new news item as a crisis while not reporting nearly as often as they should about the good news available everywhere.
That is what we try to do with the Roots of Wealth blog. To bring you the overlooked good news that should help you stay disciplined with your well diversified investment portfolio. In this post we will discuss one such item that has not been getting as much media attention excerpt from Victor Davis Hanson writing for the Hoover Institution at Stanford University. He highlighted several noteworthy items recently and we will discuss more in future posts:
United States Farming Revolution: do you remember the talk just a decade ago that the United States is becoming a net food importer? That farming seemed to have lost its competitive edge caused by high energy costs, flat food demand and prognostications of crippling droughts brought on by man-made climate change. Well, forget all that.
Victor stated, “China and India have reached the tipping point when millions of newly upscale consumers have broadened the taste of everything from almonds and raisins to process foods that require substantial bulk purchases of grains, rice, meat, and corn syrup. If only 20% of the Indian Chinese population have the capital for new choices in imported food such percentages represent about 400 million new Westernized customers, a class larger than most other nations.”
He discussed that in 2011 the United States set a new record of over $140 billion in export agricultural earnings, after ensuring that all 315 million Americans had the most diverse, safest, and cheapest food in the world. He noted that California alone exported a record $21 billion worth of produce from some 400 crops last year. New root stocks, improve cultivators, second-generation drip irrigation technologies and computerized fertilization have made this growth possible.
At the same time, America’s farm competitors have a much harder environment for which to work due to their energy and labor costs being higher in Europe and believe it or not, their regulations more onerous. Elsewhere, most of the world’s agricultural farming does not operate under the free market principles as we do here in the United States.
You probably haven’t heard any of this good news about the United States farming revolution, did you? Well it doesn’t help them to sell newspapers or magazines as editor J. Jonah Jameson told his reporters covering the Spiderman story.
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