John Roach on Market Plus
He says the main thing that a farmer can do now is lock in your long term borrowing needs. A different take that I heard from John is that the Dollar is strong because foreigners convert their currency in order to buy into the booming US stock market...it seems the more we "print" the stronger the Dollar gets, perhaps one of the beenies of being the world`s reserve currency.
John says don`t get in a hurry to sell `21 corn..."you`ll have a lot of opportunities to sell at a loss" We`ll chew through the 3 billion bushel carryover. My thought is perhaps 3 billion is a "burdensome supply" in a just-in-time inventory, however if countries switch to a grain reserve, maybe 3 billion isn`t such a burden?
Re: John Roach on Market Plus
Meh. buck has backed off a bit as the prospects for recovery improving in other major currency issuing countries. It is going to stay relatively strong until the Fed relents on negative rates.
I sorta had a vision of this world about 20 years ago but failed to stay laser focused on the plot sometimes.
Ultra low rates forever, which results in a continuous build up in debt, and inflation of most all asset prices.
I've always said that there is a limit to that game, but the Fed says no. But of course to say otherwise would knock the whole house of cards down immediately.
It'll probably work out somehow but I have a hard time working my way through the notion of buying $10K land even if the interest plus tax isn't much more than cash rent. Still seems like buying the long bond with a 0% yield.