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Canuck_2
Senior Contributor

Subsidy explained

This Twitter explains the US subsidy to farmers

 

 

Thinking about the trumpsubsidy tonight: US running a defcit, this is borrowed money. China is their largest lender. Hogs are included in subsidy. A Chinese firm owns the largest US hog producer. Trump is borrowing money from China to pay China for war he's fighting with China

 

And this explains why the corn price keeps rising in Ontario.

Now just a few $ a tonne lower than the high for this year.

 

https://www.reuters.com/article/us-usa-trade-canada-corn/canada-feeds-european-corn-appetite-as-tari...

 

WINNIPEG, Manitoba/CHICAGO (Reuters) - Canadian corn is flowing into Europe at the fastest pace in four years, helped by retaliatory tariffs against the United States by the European Union that has shut American corn out of the bloc, traders said.

Corn shipments to western European countries rose 85 percent year over year during the nine months from the start of Canada’s corn marketing year on Sept. 1, and are on pace for a total of 1.2 million tonnes in 2017/18, the most since 2013/14, according to Canadian government data.

 

 

1 Reply
hardnox
Advisor

Re: Subsidy explained

Tried to explain to people that by the very definition of a trade war, everybody starts doing things that are otherwise economically illogical.

 

Which means that everybody loses* unless you believe that trade wars "are easy to won."

 

Not everybody, most everybody. Some folks- like you at the present- accidentally benefit at least in the short run.