Dividends and The Great Trade Routes

In the library of every town and city are some wonderful reference books, an example is The Great Trade Routes by Jean Duche published by Collins, London UK, 1969. It was written as a reference book for likely teenagers or school aged children but for adults it has significance.

As you examine our economy most of it is related to trade of goods and services. If you focus on the goods part, for a long time the trade routes determined who technically controlled the world or was a big influence. When money or bills of exchange were formalized, countries which had raw materials sent them to countries which would add value to the goods and sell them to those who could use them to create money to keep the world working. If you focus on the known world of Europe, the Mediterranean Sea was the workhorse. Ships were built to move goods and services around the Sea and generally people could find what they needed.

As time went on, goods such as silk and spices would come from Asia, but it took a long time for ships to travel around Africa towards India and Southeast Asia. The Chinese were using different routes such as the silk road.

Eventually, people wanted to find a cheaper route to Southeast Asia and found North and South America. In some ways they were happy, Spain found gold from Mexico and silver from Peru, while England settled North America.

With the buildup of agricultural and manufacturing surpluses, the world changed to move goods from one area to the next. The book was published in 1969 and distribution or supply systems continue to change, but the reason is the same.

Linking to dividend paying stocks, we all are subject to some change, some we like, some we do not because it changes something. The trade routes will move to were someone can make money supplying to people who are willing to pay. Change happens to help that along.

There are more questions than answers, till the next time – to raising questions.

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