[Post Summary]Every man has his sword because of fear.
—Song of Solomon
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Here's a story the likes of which you probably can look forward to hearing more of over the months and years ahead. It is unrestrained speculation come home to roost (no pun intended) in the bankruptcy of Pilgrims Pride, a major processor of chicken wings.
First off, now we see how the cartelization of food supply can result in shortage when just one company goes under. This is not good. Granted, we're only talking chicken wings here, but what other food shortage lies in wait as the "finance gone wild" disaster continues to unfold and brings more companies to their knees?
Bear in mind, too, food production and distribution generally requires capital intensive investment. In the matter of maintaining the reliability of the food supply, then, there should be considerations beyond the profit motive. Squeezing every last drop of return on capital is not necessarily a paramount priority. Thus, in the unwind of the biggest speculative bubble the world has ever seen — structured finance — we will be wise maintaining utmost sensitivity toward matters critical to sustaining peoples' lives.
There's one other consideration I wish to raise here. Why do the more radical elements of British free market economics rail against protectionism? Does not their concern fundamentally rest on the issue of efficient supply of things, whether it be widgets or chicken wings? Why should we worry about protectionism, then, when the unfettered free market, all on its own, has resulted in a shortage of chicken wings available at many a Super Bowl party all across the country this year? That this is occurring following one of the wildest periods on record in much too loosely regulated commodities and financial markets is no mere coincidence. Indeed, we are seeing firsthand the fact some things are worth protecting.
—Tom Chechatka
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