A green day across the board. Soybeans up 12, corn up 2 and wheat up 5. Stocks are up as well. Oil is unchanged and gold is off about $2.50.
Virtually every country in Europe is experiencing some sort of work stoppage today yet the market seems to care little. They are contracting. Not growing. There are no easy ways out yet the electorate continues to protest the difficult decisions they must make due to the drunk spending policies of past administrations.
That wave of tax hikes and spending cuts will ultimately make it to our shores as well. It will be interesting to see how those decisions are met. The news is all abuzz about the fiscal cliff. Something needs to happen as I can argue that we are shrinking as well and our economy is on very nervous ground.
As for grains, still languishing and looking for some sort of pre holiday, post report direction. I think that the report has put a top on the market for the time being but we are not out of the woods yet. When will we wake up to the very very tight corn situation? Your guess is as good as mine.
Did you see where the Messiah ofered up a new tax deal of 1.6 trillion over 10 years? HEy hows that gonna help?
We are currently almost that much ion the hole every year. So don't we need a tax increase of 160 trillion over the next 10 years just to stay even?
Lots of thoughts flying around here in my head. Biggest one is have we reached peak consumerism?
With our declining birthrate and rapidly advanceing age. Do we ever get back the domestic growth that will fuel the Livestock industry so as to really light a fire under the grains?
There is only one true answer. Real growth. Not manufactured QE growth but a real boom in the economy. That is a far way off. We are not investing enough in technology and energy to make anything happen any time soon.
What we are doing is spending tax dollars on road projects, bridges etc. that will not yield an economic boom return. If anything they are just funding their underfunded pension plans. Not a stimulus to growth.
We have to have an innovation bigger than the internet to get us out of this hole. That is it. Maybe it is so big I can't see it coming.
I heard the other day that a think tank in China recommended that they remove the one child per family law. I can't remember if it was 2015 or 2020 that they recommended to take it off.
At risk of sounding like a Star Trek fan. ( I do like star trek) The only place left to have a real lasting economic boom is the space program. New technologys, new jobs,
Good point about road construction, they built a new power plant few years ago in Nebraska city, great boom,, for 2 years now its over.
Rebuilding infrastructure is a necessity to maintain economic efficiency. It's better than trying to rebuild after poor infrastructure becomes a drag. Construction jobs and employment are productive for families and communities and industry at large. Concrete, jobs, businesses bidding, machinery, spending for necessities, etc. We've done it before and now it's a bad thing? Look at Brazil's roads, ports, and rail problems. They are the model?
The problem here lies with a loose money policy. The state and federal taxes on fuel are supposed to be used for building and repairing roads, etc. With a loose money policy, fuel gets expensive. As fuel gets expensive, people drive less. When people drive less, they use less fuel. When people use less fuel, there's less money available for building roads, etc. Loose money policy also drives up the cost of construction because the building materials get more expensive. In the end, loose money policy causes raw goods to go up and causes tax money to go down. We've been experiencing this ever since Bush Jr./Greenspan started their assault on the U.S. currency and then handed the baton to Obama/Bernanke. This all leads to robbing Peter to pay Paul with regards to building and maintaining roads.
AG MOBILE
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