Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 Page 81 Page 82 Page 83 Page 84 Page 85 Page 86 Page 87 Page 88 Page 89 Page 90 Page 91 Page 92 Page 93 Page 94 Page 95 Page 96 Page 97 Page 98 Page 99 Page 10023 “A review of various studies indicates that automation will signifi- cantly increase unem- ployment. And the new employment created will require updated or different skills. This is one of the topics that seems to inspire fear in the leadership. They are not sure what to do. ” on employment, inequality and poverty. A review of various studies indicates that automation will significantly increase unemployment. The new employment created will require updated or dif- ferent skills. This is one of the topics that seems to inspire fear in the leadership. They are not sure what to do. This raises a very important question. Why are we attempting to industrialize agriculture if we have no jobs for the people who will lose their self- sufficient lifestyle on the land? Why? As Sir James Goldsmith said, “If…we chase 2.1 billion people into the slums of the towns, we will create on a scale unheard of mass migration… We would be creating 2 billion refuges. We would be creating mass waves of migration which none of us could control. Migration: That quote from Sir James Gold- smith brings us to the topic of migration. One of the reasons why people migrate is for physical safety. They leave a war-torn area and head for a place that is at peace. Another reason is food: they leave a place of famine in favor of a location with a food surplus. I want you to think about this. Why does President Trump want to build a wall on the US southern border? He represents a por- tion of the “deep state” that wants to preserve the United States and sacrifice the empire. This group wants to gather resources and to rebuild within the borders. The US northern border is shared with Canada, a friendly, wealthy country with a large food surplus which is more than capable of managing its own borders. The eastern and western borders are protected by very large oceans. Our Southern border, however, is exposed. If we experience a global financial crisis, or a trade war, or severe climate change, what is the po- tential for migration of large numbers of people through an open Southern border from an area in which we have encouraged the growth of orga- nized crime cartels? In some scenarios, this migra- tion would be sufficient to destroy both Mexico and the United States. Building a wall may sound whacky today. How- ever, the people who want this wall may be look- ing down the road and worrying about a very different scenario than is currently obvious. Human vs. Inhuman: Our greatest risk as a society is not economic. It is that we allow our culture and society to become inhuman. There are many forces moving in this direction. At the heart of remaining human is the availability of fresh, nutritious food and clean water. This is why helping to build or support an excellent local food supply for you and yours is a vote for a more human future. VI. Insights for Investors For many years I have searched for a conserva- tive way to invest in liquid securities associated with agriculture and food. Such an investment approach is possible, but not particularly easy to do. Now that the long-term bull market in bonds is over and funds are shifting into real estate, commodities and equities, I continue to watch for signs that the inelastic nature of the demand for food and rising food prices will attract more investor focus on food. Whether or not this happens, food should rise in impor- tance on your investor radar screen. Sovereign Credits: Food security has not been high on the risk lists for sovereign credits. Under a variety of future scenarios, this may change. When you buy a government bond, you want to understand the risks and liabilities related to keeping the population fed, particularly if and when price volatility is on the rise. Solari Screen: As described in our 3rd Quar- ter Wrap Up on investment screening, I am launching the Solari Screen in 2017 in part- nership with an asset manager. I intend to find and approve as many food stocks as possible. My challenge is that the corporate involvement with GMOs, the refusal to label, and other systemic corruptions make it impossible to be a perfectionist. It is difficult to find good companies. And it is hard for good companies to avoid financially harmful economic warfare – just look at what happened to Chipolte. I an- ticipate that continued consolidation through