- Agriculture.com Community
- Announcements & Forum Help
- Farm Business
- Young & Beginning Farmers
- Cattle Talk
- Crop Talk
- Hog Talk
- Ask the Agronomy Insider
- Machinery Talk
- Machinery Marketplace
- Shops, buildings and bins
- Ask the SF Engineman!
- Computers & more
- Precision Agriculture
- People & Rural Life
- Ag Forum
- Women In Ag
- Agriculture.com Blogs
- Your Farm in the Future
- Women in Ag: Lisa Foust Prater
- Women in Ag: Brenda Frketich
- Women in Ag: Anne Miller
- Women in Ag: Jennifer Dewey
- Women in Ag: Talkin' Turkey with Lara Durben
- Women in Ag: Heather Lifsey Barnes
01-01-2013 10:32 AM
Bill passes the senate .Doesn't cut spending much. They will keep the printing presses running. The "rich" will get dinged on taxes.
Farm Bill to be extended one year.
Day of Reckoning five years or less.
01-01-2013 11:36 AM - edited 01-01-2013 11:38 AM
425 Cat - I have always been a big promoter for a cheaper dollar, and it would be much cheaper than it is today, if the FED had stopped printing money. I was always handing out shovels on this site for those who I believed were making mistakes to dig their graves with.
But . . . It just seems this dollar will not fall, because of the shortage of dollars in the world and our Treasury getting the FED to issue currency and buy bonds.
In addition, foreigners are jumping in and purchasing Treasuries, because they are the least worst investment in their world.
This tends to keep the dollar bouncing around 80, if we could push it to 75, the grainaries in the US might be empty and prices would be higher.
The dollar would be below 75 if the FED had not been printing fiat money to meet the shortage of dollars the world. My theory was always, cheap dollar= higher exports which means more demand and higher prices.
Obviously, my little theory is being shot to pieces by what is going on at the FED and our Treasury. I am beginning to think I really "don't know jack".
Hell, I might be the one going out behind the barn and digging my grave on this issue. Adios Amigo. John
01-01-2013 01:13 PM
Before the election, was there a fiscal cliff? At the debates, was a question about the fiscal cliff asked? I feel we are being fed BS by the media. Is the answer to the fiscal cliff this new bill? Really, 62 billion in new annual tax increases and a 2011 budget deficit of 1089 billion. The real reason money is being printed = To let government not make any hard choices. At this point, does anyone knows what will happen because of long term massive government deficit spending? My guess, not good things.
01-01-2013 01:29 PM
Better start digging Faust. Cheaper dollar good for us commodity producers, however takes away from the purchasing power of the poor and middle class. Slowing eroding over time. Wages down town staying the same while gas , food , tires , etc all going up. Not sure how they are making it in suburbia. I guess they ain't with the amount going on food stamps every month.
There is a limit to everything. Investors will begin to lose confidence in the dollar.Many going to gold and silver now.
I don't follow your dollar shortage theory at all.
01-01-2013 01:30 PM
Yes, Faust. I thought we would start to see some inflation appear in our economy in 2013, but now not so sure. The Goverment Index's are certainly not showing much inflation, and now I am worried about a Deflationary Spiral developing. That would have our economy, along with all of farming on it's knees in no time. A Deflationary Spiral like the 1930's would be the worse possible thing to happen to our country and would take years to pull out of. I just shudder to think about what a Deflationary Spiral would do to our country, along with our families stored wealth, which is currently stored in Iowa farmland, along with a little in stocks and bonds. I have 90% of my families wealth stored in farmland, which as they say is bad to have so many of your eggs in one basket. However, the ROI has been just great the last 5 years on our farmland investment. If we do get the start of a Deflationary Spiral in our economy due to the dollar issue, we better exist out of farmland, but then you have the problem of what to do with our families stored wealth. Pretty hard to decide what to do here.
01-01-2013 02:38 PM
Well RSW maybe you ought to think about lliquidating 50% of your holdings. Your wife will be really upset if you tell she has to go to town and get a job when the bottom falls out of this thing
01-01-2013 02:40 PM
425Cat- I live in the Twin Cities and talk to alot of my friends here about the economy. They are all basically upper-middle class living in $300,000 to $500,000 houses, houses in the Twin Cities are not cheap and we all know that houses are a waste of money, but you need a place to live. Some got laid-off in the past few years and had to downsize there houses by at least 50%. City people seem to all want big expensive houses for some reason and will spend 33% or more of there monthly income on housing, which is a big mistake I feel. Also they like expensive cars and only think of what the monthly car payment is, they never just pay cash. A good measure of how the these upper-middle income city people are doing is the cars they drive. I know it sounds funny, but these people enjoy expensive cars, which again is a total waste of money. Most of the cars they bought was when the economy was going gang-busters here in the Twin Cities pre-recession. We of course talk about cars with the guys and most of the cars they bought when the Twin Cities economy was doing well now have 100,000+ miles on them and will need replacement. Almost with-out an exception they say it is taking every dollar of there income to just stay even with the cost of living since they have not had any wage increases and in fact many have had to take pay-cuts with there employers, plus there is much less of a chance for them to get a higher paying job today, than in the past. So from my observing of all these upper middle-class Twin City people is that they are spending every last cent of there income just to stay even, and not saving one dollar for retirement or if they have kids, not 1 dollar for there kids college education account. Like they are robbing Peter to pay for Paul. All this will show up down the line since they may need to continue working into there retirement years and there kids will need to borrow alot of money to attend college. They could basically sell some of these $500,000 houses and buy 1 for 1/2 the price and the same with cars, buy a Ford Fusion car for $20,000 new, not the Lincoln SUV's for $45,000. However, it seems city people have a very hard time going backwards, meaning lowing there standard of living to meet there lower purchasing power of there decreased yearly income. I really think that most Americans just need to understand that there lifestyle may need to be lower to match today's economy. That is very hard for upper to middle class Americans to accept I believe.