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Veteran Advisor

Sell Cheap Buy High - Two Economies?

The Wall Street Journal had an article that suggested we have two different levels of inflation, one in goods and one in services.

 

The services industry apparently is starting to show signs of inflation and that is not surprising considering the low unemployment rate.  The goods economy is still importing cheap foreign products and isn't showing the inflation so much, according to this article.

 

I don't know - does that make sense to you?

 

Is it related to the idea that when we get a tractor repaired we have to pay what is charged but when we sell corn we compete with many low cost producers worldwide.  

 

If this is the case, it looks like it could get steadily worse for the farm economy.  It's the classic case of buying retail, selling wholesale and paying the freight both ways.

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16 Replies
Honored Advisor

Re: Sell Cheap Buy High - Two Economies?

Perhaps rather than busting our butts raising cheap grain and buying high priced John Deeres and paying mechanics high wages to fix them, why not cry "Uncle!" let our land sit idle and let other idiots around the world race themselves to the bottom?   Smiley Happy

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Veteran Advisor

Re: Sell Cheap Buy High - Two Economies?

BA....who's going to pay the bills ????

Also like the logic, hurry up and buy new
Tractor before it goes up !!!!
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Honored Advisor

Re: Sell Cheap Buy High - Two Economies?

How long before another truck company goes under.
Every time they have to stack on incentives of 12-15% to sell them it’s gettin close.
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Senior Contributor

Re: Sell Cheap Buy High - Two Economies?

I'm to young to remember the farm unions in the 70s. But do you want to sit out a year and finance it? Here's how.
Organize one major state quietly, very quietly or maybe two. Start early. However long you think it would take.
The ultimate plan would be this.
Come time of low of markets, early year before planting intentions everyone buy usual productions on futures market very quietly going long. Those that are contacted about prospective plantings report more acreage then buy more contracts. Comes time to order seed, order but don't pay for it and don't sign anything.
Comes time to hook planter up, Don't.
Comes time to plant take wife and family on vacation! Wait on market, sell positions and book next years positions. Sit back enjoy a cocktail and watch world panic until next season!
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Senior Contributor

Re: Sell Cheap Buy High - Two Economies?

That would be a good job for the national corn growers association. Organization!
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Senior Contributor

Re: Sell Cheap Buy High - Two Economies?

Contracts could be signed with stiff penalties for anyone who participated and planted or violated confidentiality.
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Senior Contributor

Re: Sell Cheap Buy High - Two Economies?

For those that participated it would be the best two years farming they ever had!
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Veteran Advisor

Re: Sell Cheap Buy High - Two Economies?

Your'e too young to remember the NFO?

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Senior Contributor

Re: Sell Cheap Buy High - Two Economies?

Yes. Born in 78.
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