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jrsiajdranch
Veteran Advisor

We interrupt the MT....VR bickering show for some dollar stuff........

Well it's been a while since we've talked about the stuff that is really moving the market so I thought instead of making a swag about planted acres or the rainfall at flowering, I would get back on my conspiracy horse and share a thought or three.

 

First quote for the centuries.

“Whoever controls the volume of money in our country is absolute master of all industry and commerce…and when you realize that the entire system is very easily controlled, one way or another, by few powerful men at the top, you will not have to be told how periods of inflation and depression originate.” – President James Garfield, 2 weeks before his assassination.

 

Here is one of his famous quotes when he was in the senate and shows that we have long fought the war of a corrupt dollar and Government.

 

With a reduced agenda on the Military Affairs Committee, Garfield was placed on the House Ways and Means Committee, a long-awaited opportunity to focus exclusively on financial and economic issues. He immediately reprised his opposition to the greenback, saying, "any party which commits itself to paper money will go down amid the general disaster, covered with the curses of a ruined people."[94] He called greenbacks "the printed lies of the government"[95] and became obsessed with the morality, as well as the legality, of specie payment, and enforcement of the gold standard. This policy was against his personal interests; his investment profits were dependent upon inflation, the by-product of the greenback. His demand for "hard money" was distinctly deflationary in nature, and was opposed by most businessmen and politicians. For a time, Garfield appeared to be the only Ohio politician to hold this position.[96]

As a proponent of laissez-faire on the economic front, he declared, "the chief duty of the government is to keep the peace and stand out of the sunshine of the people."[97] This view was in stark contrast to his view of the role of government in reconstruction efforts.[98] Another inconsistency in Garfield's laissez-faire philosophy was his position on free trade – he favored the tariff, out of political necessity – when it served to protect his district's products.[99]

Garfield was one of three attorneys who argued for the petitioners in the famous Supreme Court case Ex parte Milligan in 1866. This was, despite many years of practicing law, Garfield's first court appearance. Jeremiah Black had taken him in as a junior partner a year before, and assigned the case to him in light of his highly reputed oratory skills. The petitioners were pro-Confederate northern men who had been found guilty and sentenced to death by a military court for treasonous activities. The case turned on whether the defendants should instead have been tried by a civilian court; Garfield was victorious, and instantly achieved a reputation as a preeminent appellate lawyer.[100]

 

 

For all of you who think that the fundamentals are moving this market you only have to look at the reason for movement yesterday from our very own Marketeye's commentary, This is what he quoted an analyst as saying yesterday.

 

One analyst says, "The market traded higher, as the dollar started to give back its gains.

 

Well here it is guys corn is once again playing it's "hedge against inflation role"

 

Just look at the Greece thingy. Why is it taking so long to resolve? DO you really think that banks are concerned about how the austerity measures are going to effect the commoners? Heck no! They need to keep this "panic" in the market  for several reasons.

 

1. This gives the thieves more time to rob the bank via the public purse.

2. every day that you here of a possible breakthrough there is the inevitable following of disappointment by the market after the euphoria. Some body is making a lot of money off the psych in this market not the fundamentals.

3. As long as the focus is on Greece we are not going to look at the real problem. Fiat money!

 

Now how does this impact grains.

 

There is no end in sight right now for less inflation. the dollar is the underlying strength in this grain market. It will be for a while yet. The end result is that the guys who are holding grain are still gonna get the carry. And the inflation risk/reward. This is going to continue to kill the consumer. Thank God for exports as the domestic livestock industry would be non existent without them.  WE have had record exports in all areas of livestock production.

 

Why?

 

Because our dollar is cheap enough that other currencies are worth more in their purchases of our value added products. In fact we had a record export year in dairy heifers this year. (Turkey got boat loads of them) 

 

So I do not give a flying uhm pig about how many weeks are in a year. OR that export shipments are up ( no shinola Sherlock it is the dollar trade again). You gotta look at the reason for these things and it is the underlying dollar weakness.

With our newest phoney budget we see that the dollar spending spree is going on forever. This ensures inflation. SO buy that 12,000 dollar land now cause it is going higher. and that 1200 dollar yearling heifer is gonna be 1750 this next year. And it would scarey to put a number on the price of corn if we actually have a fundamental supply problem this summer. 

( BTW I bet we do)

 

Hey hows about a pic to end the rant with?

IM000838.JPG

 

Now back to your regularly scheduled bickering!

 


10 Replies
Silverwheaton
Senior Contributor

Re: We interrupt the MT....VR bickering show for some dollar stuff........

Very good post.  A lot of truth to it.  Sure, short term bearish declines but over all, money creation continues as long as  there are 1,000,000,000,000 to 1,500,000,000,000  trillion dollar budget deficits! 

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jonnybegood
Contributor

Re: We interrupt the MT....VR bickering show for some dollar stuff........

    Great post. Don't see much changing though Mitt in bought and paid for by GS and such as is BHO. I'm voting for Ron Paul as if it will matter.

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Silverwheaton
Senior Contributor

Re: We interrupt the MT....VR bickering show for some dollar stuff........

Yes, go Ron Paul!   They continue to ignore him.  For good reason.  He would destroy the establishment and put the common man back in charge with liberty as his base!  My only disagreement with him is his position on drugs.  But that is minor compared to all the bigger issues he is right on.

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jec22
Veteran Advisor

Re: We interrupt the MT....VR bickering show for some dollar stuff........

Great post JR.   So again, no matter how much things change, they remain the same.  A few men at the top in control.    EXCEPT,  there is one other change that never changes...they are only on top on this earth, and God can change the plans of men in a nanosecond.

 

Corn and beans look to me like they have lagged some of the other commodities on this inflation go around, even though their stocks are not high at all.  Crude, copper, cattle, are the new leaders.  Will know shortly.  After March 1, the easy bushels to be bought will be gone, and contrary to the beliefs of many, I think a lot of corn is already sold.  But it is doesn't seem bad to be wrong about not hitting the high when you still got 6+ for your corn. 

 

Is it all right if I enjoy the MT..VR show?  Some may take their posts personally, I find them very entertaining.  I think Mizz is the one guy that has stayed bullish when the tide wanted to swallow him up.  Admire that.  Now just for VR, I will go fill my tank with E85 so he won't lose so much sleep over ethanol stocks.  

 

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oncearound
Veteran Contributor

Re: We interrupt the MT....VR bickering show for some dollar stuff........

Ron Paul has been in Congress on a "on again, off again" status, first elected in 1976. what has he acccomplished in all those years that pertains to his "agenda" for becoming President? what makes you think he will as President be able to bond together BOTH sides of the aisle when his historical record clearly demostrates he lacks the leadership qualities that would enable him to bring just ONE side of the aisle to his line of thinking??????? 

 

not saying i don't agree with some of his views cause i do, but Ron Paul obviously is not the vessel to which other politicains will "hitch their horse to".....for all his sound economic views, his opinions on Islamic Terror supporters such as Iran, Syria..etc, as mentioned above his views on Drug Laws.....those type of views as Ron Paul expresses on those topics will trump his Liberty & Currency opines everytime, IMO?

 

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frankne
Veteran Contributor

Re: We interrupt the MT....VR bickering show for some dollar stuff........

 Good post JR. Thought of  you yesterday when a guy told me what the milk futures where doing.

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ehoff4187600
Frequent Contributor

Re: We interrupt the MT....VR bickering show for some dollar stuff........

You missed the main reason it hasn't settled and that is because the counterparties to the CDS risk on Greek debt can't allow this to be called a default. For if they do it starts a disey chain that blows up the western world banking system. The counterparties to the risk are those who determine whether it is a default or not and they aren't gonna blow themselves up. Banksters = ISDA

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sw363535
Honored Advisor

Re: We interrupt the MT....VR bickering show for some dollar stuff........

Great Garfield quote Jr.

 

 

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sw363535
Honored Advisor

Re: We interrupt the MT....VR bickering show for some dollar stuff........

I think, for the most part, money is the facilitater of trade, or maybe the grease that makes the trade faster and easier.  But when the dollar goes to Zimbabwe status, we will still trade grain for your meat and milk, and find a relative value to make the deal.

Maybe we will use something we will call a "carbon credit" or some other imaginary value,  but trade will happen--------because of the need based fundamentals.  There will always be value-----but maybe on a different scale.

Until the market gets flooded with manna.  Then we both get retrained.

Thanks for a good read on another 3 day weekend.  

 

Dairy guys are going to be real irritated when the new "Greece" goes to a 4 day work week.  🙂   🙂

 

 

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