Game changer.

California is known for growing a huge amount of the fresh produce consumed in the US.  In order to do this, the state relies on great weather, many square miles of land, lots of fresh water and tons of El Cheapo Mexican labor.  Once grown and harvested, the produce is then trucked to its consumption destination.

That is how it has been for a long time now.  But this is quietly changing in a major way as indoor vertical automated soil-less farming has now arrived.  This is highly deflationary and a game changer in so many ways.  By the way, only an economic ignorant believes that deflation is bad.  You'll often hear that deflation is a decrease in the amount of money in the economy but this is only half true even when considering the amount of money to include both cash and credit/debt. 

The full truth is that deflation is a decrease in the amount of money in the economy relative to what is available for sale and a close proxy for that is production.  If production skyrockets for any reason, including productivity due to automation, knowledge, better tools and the availability of low cost energy then that is deflationary.  Unless the money supply rapidly increases under these conditions you will end up with deflation, the major sign of which is lower salaries and lower prices.

The history of man shows nothing if it doesn't show a constant improvement in automation, knowledge, tools and energy development.  Thus, mankind is inherently a deflationary species.  If we have inflation it is only because parasites have been allowed to control things and through the use of a fraudulent money supply they have been able to pump the amount of money running around in the economy up for many decades now.  But as I have explained in these pages many times, most of that "money" is just debt/IOUs that will never be paid.  They will be defaulted on.  So the hope that government will somehow be able to manage deflation is hoping beyond hope.

There are two ways that government can introduce inflation at this point:
- become a total obstructionist in every way to anything that promises increases in productivity and efficiency, including vertical farming
- lose the confidence of the people in the issuing authority of the currency.  When this happens, people will dump their fake money into the streets.

Until either of these things happen we can expect more deflation ahead.  Having said this, no deflation ever lasted forever in a corrupt money supply regime.  At some point the people always lose confidence in the con game of paper money and massive inflation precedes hyperinflation.  Look around the world and you can see it happening to many 3rd world countries.