71 



People are being driven off from farming. In fact, if you take the 

 entire diet spectrum, we are a net importer, in certain respects, be- 

 cause of the free trade policies of recent years. 



There are 26 million people on food stamps. That doesn't even 

 account for the people who aren't on food stamps. And the food 

 stamps don't go far enough. Last summer it was announced in the 

 Georgia food bank warehouse that the USD A didn't have the com- 

 modities to provide for the needs. 



Also, without going into it, urban water, irrigation systems — 

 there are trade-offs, fights, the systems are breaking down. 



We have this E-coli outbreak that was discussed this morning. 

 We already have cholera, as a matter of fact, in the Rio Grande 

 River Basin. It's not just on the south bank. It is in Texas. This is 

 not publicized, but this is just an example of the degree of break- 

 down that we have in the country. 



The point I would like to make about this is that if we continue 

 any kind of legislation that adjusts for this — in other words, that 

 accommodates to this — that is madness. So if we have things like 

 free enterprise zones where we have low input agriculture, low 

 wage employment, low capitalization, no infrastructure, no sanita- 

 tion, we're going to get more cholera. We're going to get a bigger 

 death rate. 



In Iowa they just instituted animal enterprise zones. You talk 

 about E-coli. Watch out. 



Another thing, if we think exports are going to do it for us, a 

 bigger share of the world market that was discussed — the world 

 market is being crushed. There may be 80 million plus people in 

 Mexico but they don't have the means to buy the milk powder or 

 the corn. The market itself — there is a world depression. Let me 

 leave it at that. 



The means to buy abroad is not just being cut in the former 

 Soviet Union. Look at Africa. After all, people are starving. They 

 don't have the means to either buy or to produce for themselves. So 

 much for that. 



So what do we do? This is where I think we simply have to 

 expand agricultural activity, basic industrial activity, infrastruc- 

 ture building, water — these things. How are we going to do that? 



The problem we face is that we are expanding financial activity. 

 That is the sector that is growing. How does that work? The deficit 

 was raised here and you provided a chart about the budget. The 

 real issue with the deficit—and believe me, Mr. Perot never told it 

 like it is — you have a great deal of debt being generated that 

 doesn't contribute to any of the agricultural industry or real life 

 needs. 



The Federal Reserve is the institution which is a private institu- 

 tion. Here is how they contribute to the debt. The Federal Reserve 

 contributes to money availability by loaning it about 3 percent to 

 select banks. Then these entities turn around and they buy Gov- 

 ernment paper and they get 4 to 8 percent. So they get an automat- 

 ic spread and the deficit increases because we have so much debt in 

 the Federal Government because we have to pay these entities or 

 whoever else owns this debt. So this spread is a handout to differ- 

 ent banks. 



