Posts: 13,047
Registered: ‎02-06-2014

Re: Hog prices


Of course record profits are sure to lead to an increase in production.


But my mind was wandering through the notion of ZIRP and overcapacity in general. The link gives that some consideration.


Maybe hogs still are the great tool for understanding economics even though they long since quit being a true free market in the classic definition.


But yeah, it makes sense to me. In most manufactured items (which hogs certainly are now), ZIRP should be more deflationary than inflationary. Except in those things that have a degree of IP protection, or have achieved classic oligopoly status- such as seed and fertilizer.


Seed checks both boxes.