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Contributor
Orthel7
Posts: 21
Registered: ‎07-03-2012

The Big Trap

When the Federal deficient was 6 trillion dollars, the gov't payed 380 billion in interest. Now, the Federal deficient is 16 trillion and we still pay 380 billion in interest.(because of artifically low interest rates) If the interest rates go back to where they were when we had a 6 trillion dolloar debt, the annual interest would be 1.1 trillion dollars or 30% of the budget. Did the Federal Reserve save us from disaster or pospone it and make a bigger disaster in the future?

Veteran Advisor
Jim Meade / Iowa City
Posts: 2,318
Registered: ‎04-30-2010

Re: The Big Trap

What does this have to do with marketing?

Contributor
Orthel7
Posts: 21
Registered: ‎07-03-2012
0

Re: The Big Trap

Dear Jim,

 

What I said is going to have a big effect on marketing. My bold prediction is everything will be alright until after the 1st of the year and then things will go down hill. I spend 7 years in Iowa City. 40 years ago I was in the reserves with the Danes of Danes Dairy fame.

 

You might be interested to know that Iowa's 1st governor, John Lucas rode with the Iowa City Vigilante Committee while he was the governor. To him, law and order was not just a slogan.

Veteran Contributor
vandenplas
Posts: 129
Registered: ‎07-25-2011
0

Re: The Big Trap

Orthel7:

 

Jim Meade had a good question, but your answer to it was even more baffling than your first post.  You need to take something or get some rest.  Right wing politics are affecting your logic and thinking. 

Senior Contributor
pritchh
Posts: 495
Registered: ‎10-18-2010
0

Re: The Big Trap

doom gloom is a constant risk. now higher than on avg. but oveertime,

doomgloomers lose, somehow we maake it through.

 

its odds, no?

 

Marketing ralated?  how about those with high equity in their operations, go and get a mortgage, borrow

35% of value, locking inat 3.5% for 15 yrs,, - articficial.

 

and in 3-4 yrs use the equity to expand and market MORE grain, oilseeds, earning 8-12% on capital.

Senior Advisor
kraft-t
Posts: 9,833
Registered: ‎05-10-2010
0

Re: The Big Trap

Just about everything has been said about marketing that needs to be said. For those that haven't read it i will repeat one more time.

 

Buy low & sell high but not necessarily in that order!  What more do you need to know?

Senior Contributor
Longcreekfarms
Posts: 408
Registered: ‎08-07-2012
0

Re: The Big Trap

What should I sell to have the change to "buy low" with? :smileywink:
Contributor
Orthel7
Posts: 21
Registered: ‎07-03-2012
0

Re: The Big Trap

Mathematics is not right wing., nor did I come up with what I said. It has been discussed on CNBC. I was sitting in a Commodity Trading office on the the day of the 87 stock market crash. The grains went down 2-3 days in a row around the bottom of crash. That is what we are about to get out of Fed policy. So what I said is related to marketing.

Veteran Advisor
BA Deere
Posts: 7,094
Registered: ‎05-13-2010
0

Re: The Big Trap

So the deficit, national debt and interest rates have nothing to do with marketing. If interest rates hav to go to 15% to get the Chinese to buy our debt because the national debt gets 140% of GDP that will have no effect on what end users can pay for a bushel of corn? And to be concerned about it makes someone steeped in "Rightwing politics"? Huh, you learn something everyday :smileyhappy:

Senior Advisor
kraft-t
Posts: 9,833
Registered: ‎05-10-2010
0

Re: The Big Trap

When you go to the field in the spring you are already striving to buy low.You want to produce a low cost bushel and you want to sell higher than the cost of production.

 

Cargill Ray does the same thing. He buys at one figure and sells at higher figure or he improves the product to where it is worth more.

 

Now a spec may well sell a contract with the intent to buy it back at a lower price. So it usually works for everybody if they follow my golden rule. lol