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Rising Food Prices Part 1: Oil and Fertilizer

Mastering Nutrition

CHAPTER

The Cost of Capital Issue

It's the cost of capital issue. So when you have the president of the united states and there is first day cancelling pipe lines that areeed to transport that oil, it doesn't make so much sense to then go drill wells in that place where they just cancel the pipe wine. That's the prelude, like we saw in the financial crisis, to less loan availability for certain things. We saw this with housing and other stuff, and it's why it took so long for the housing market to recover. And its coinciding with tremendous pressure from many perspectives that have led to a very high costs of capital despite a profitable period industry.

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