Myth Three – Industrial Food is Cheap

From Fatal Harvest
The Seven Myths of Industrial Agriculture

3/31/09 Ukiah, North California

The Truth If you added the real cost of industrial food—its health, environmental, and social costs—to the current supermarket price, not even our wealthiest citizens could afford to buy it.

In America, politicians, business leaders, and the media continue to reassure us that our food is the cheapest in the world. They repeat their mantra that the more we apply chemicals and technology to agriculture, the more food will be produced and the lower the price will be to the consumer. This myth of cheap food is routinely used by agribusiness as a kind of economic blackmail against any who point out the devastating impacts of modern food production. Get rid of the industrial system, we are told, and you won’t be able to afford food. Using this “big lie,” the industry has even succeeded in portraying supporters of organic food production as wealthy elitists who don’t care about how much the poor will have to pay for food.

Under closer analysis, our supposedly cheap food supply becomes monumentally expensive. The myth of cheapness completely ignores the staggering externalized costs of our food, costs that do not appear on our grocery checkout receipts. Conventional analyses of the cost of food completely ignore the exponentially increasing social and environmental costs customers are currently paying and will have to pay in the future. We expend tens of billions of dollars in taxes, medical expenses, toxic clean-ups, insurance premiums, and other pass-along costs to subsidize industrial food producers. Given the ever-increasing health, environmental, and social destruction involved in industrial agriculture, the real price of this food production for future generations is incalculable.

Environmental Costs
Industrial agriculture’s most significant external cost is its widespread destruction of the environment. Intensive use of pesticides and fertilizers seriously pollutes our water, soil, and air. This pollution problem grows worse over time, as pests become immune to the chemicals and more and more poisons are required. Meanwhile, our animal factories produce 1.3 billion tons of manure each year. Laden with chemicals, antibiotics, and hormones, the manure leaches into rivers and water tables, polluting drinking supplies and causing fish kills in the tens of millions.

The Quiet Coup

The crash has laid bare many unpleasant truths about the United States. One of the most alarming, says a former chief economist of the International Monetary Fund, is that the finance industry has effectively captured our government—a state of affairs that more typically describes emerging markets, and is at the center of many emerging-market crises. If the IMF’s staff could speak freely about the U.S., it would tell us what it tells all countries in this situation: recovery will fail unless we break the financial oligarchy that is blocking essential reform. And if we are to prevent a true depression, we’re running out of time.

Keep reading The Quiet Coup at The Atlantic Magazine→

Once the five problem banks have been put into isolation by the FDIC and the Treasury, the Administration must introduce legislation to immediately repeal the Larry Summers bank deregulation including restore Glass-Steagall and repeal the Commodity Futures Modernization Act of 2000 that allowed the present criminal abuse of the banking trust. Then serious financial reform can begin to be discussed, starting with steps to ‘federalize’ the Federal Reserve and take the power of money out of the hands of private bankers such as JP Morgan Chase, Citibank or Goldman Sachs.

See also Geithner’s ‘Dirty Little Secret’ at Global Research→

I suspect a trick…

From Michael Laybourn

3/30/09 Ukiah, North California

With a tip of the fedora for Janie Sheppard
The big question is why would DDR want to change the zoning to build a mall these days? The economy tells us quite clearly that malls and shopping centers are not the way to go. Mall developers including DDR are all in serious financial trouble, as we can see here:

Friday March 27, 2009, 10:58 am EDT
NEW YORK (AP) — Fitch Ratings downgraded several ratings on Developers Diversified Realty Corp. on Friday, citing the shopping center developer’s liquidity position.

Fitch downgraded Developers Diversified’s issuer default rating, $1.3 billion in unsecured revolving credit facilities, $1.4 billion in unsecured medium-term notes and $833 million in unsecured convertible notes one notch to “BBB-” from “BBB.” The new rating is Fitch’s lowest investment-grade rating.

Fitch also downgraded $555 million in preferred stock to “BB+” from “BBB-,” sending it into non-investment grade, or “junk,” status. It assigned a negative outlook to the new ratings, implying another downgrade could be forthcoming. Fitch also said the company would have a liquidity shortfall of $300 million through the end of 2010 due to limited availability under the company’s revolving credit facilities and debts coming due in 2010. Last week, the company was removed from the Standard & Poor’s 500 Index due to a low market capitalization.

Holy smokes! Here is a company spiraling down to worthlessness that wants to spend a huge amount of money to convince voters to change the zoning for the Masonite property they bought to build a mall. This doesn’t seem to make any sense, just considering their own financial problems. In the past year DDR’s stock has plummeted from a high in 2007 of around $70 per share to a low of under $2 a share as of March, 2009. Nosing around a little bit more, we find that In December, 2008, another article noted that: