Yesterday over dinner with a close friend we were talking about my fear of an unseen food crisis adding up to the current economical crisis. I've written before on my fears of the impact of a Global Food Crisis on Europe an specifically Belgium. My friend yesterday doesn't believe the storm can be that bad. He believes our governments in Europe can help with price controls.
Price controls are not a solution, they only lead to reduced supplies. There were price controls in the days of the Roman Empire and in ancient Egypt or Babylon. Price controls under the Roman Emperor Diocletian led to a decline in the supply of goods. The same thing happened under President Nixon's price controls in the 70s and the same is happening today in Venezuela. This lesson from Venezuela is an essential one for us.
It's one of the biggestopportunities for entrepeneurs these days: buy farmland in Brazil and start running a farm with a vision. More on that during our investors trip in May.