What am I missing NC Illinois $14,000+ / a

[kraft-t]

Yeah right! while you pay $2000 real estate tax on an $1 million dollar 80 the city folks pay a $2000 real estate tax on 2500 square foot home that is non income producing. Somehow you think that you are taxually abused

[farawayguy]

Devaluing our currency makes the land worth more in dollars, not less. Land reverting to $80/acre would be extreme deflation, pretty unlikely in our scenario. And that scenario is the most opposite from Zimbabwe as you can get. 

As for the doomsayers, our deficit right now is 4% of our GDP, down from 10% in 2009. That's the equivalent of a family making $100,000 a year borrowing $4,000. And if inflation is close to 2% and federal interest rates are about 2%, the money is borrowed for free. 

[Kay/NC]

Where we live, proprety taxes already are exhorbitant, compared to your example. Rates here are close to $1.00 per hundred dollars of assessed value...most of that to support unfunded social engineering mandates.

[idalivered]

youre right. ($80 was an extreme example, but you get my drift)germany post ww1 would best fit your example. that said, it could go either way depending on how the fed uses interest rates to control the potential runaway inflation proposed in our peerless prognostications. I apologize for the zimbabwe comment. I was tryng to compare administrations that are considered inept by many.

[idalivered]

that seems fair to me don.

[Shaggy98]

Rent out the house, WALA, There's your income.

[sw363535]

Cash is being devalued monthly.  Stock values are still building on companies that have short term futures and are showing limited income potential.  Real estate is still working through a lot of short sales.  

Farm land is still viewed as an investment that may deflate some but will produce return year after year in an economy that will not support interest rates or consistant returns.  

When the "stocks to buy" are in companies who have uncertain futures investment is difficult.

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Need an asset that will hold most of its value and create a return  in uncertain times?  What beats farmland?

[nwobcw]

  Krafty there you go again.  The bare 80 doesn't send kids to school or require much if anything in the way of police or fire serevice.

[Kay/NC]

You are correct that a piece of farmland with no home on it costs a community virtually nothing...that is why there are " deferrals" of taxes on farnpmland that stays in a family, what we call " land use" tax breaks. Still, we all use the roads to haul our products to market, rely upon infrastructure like railways and ports to move them to endusers.

[Kay/NC]

If cash is being devalued monthly, which is a premise I will accept, then much of the increase in " value" of every asset we buy is simply its base value, taken at some point, plus the devaluation that has taken place over the period of time. In the sale of an asset of fixed quantity such as an acre of land, prices have to rise, just to allow for the devalued currency that purchases it.

In the grocery store, the shrinkage in value is often hidden by companies that keep using a box of a certain size and shape to hold an ever -decreasing amount of cereal, for example. The rest of the illusion is the inner liner bag, which is filled with 12 ounces of food, instead of a pound, and an ever -growing amount of air.

If people would just hold their grocery spending level, and buy the same products, the obesity epidemic ought to fix itself, consuming 25 % fewer calories for the same money?