Food prices are also linked with energy prices
exactly. A friend who repairs tractors on the side and has worked for banks repo'ing equipment from bankrupted poultry farms came by to borrow a key from my Kioti brand tractor. The keys are pretty much interchangable and he went to have one made once he could show the key maker what the blank looked like. He bought the tractor from a bank but they had no key. He mentioned he had sold his "big" tractor because cutting hay 8 hours was using almost 86 gallons of fuel... That is $24 an hour operating cost for fuel alone....He was seeking the highly fuel efficient Duetz air-cooled motor in an older tractor but the government is now stopping the sale of air-cooled motors...saving the environment by requiring engines that use more fuel... go figure.
farmers were anticipating a huge increase in agricultural land... paid about $1,000 too much an acre
You will see that every time and it has bankrupted a many a young farmer...and usually that young farmer never recoups, which explains why the average age of a farmer today is well north of 50.
they know how to make a buck ...... but they have no clue about the broader financial perspectives
Who moved their cheese? Like the mouse, they can't figure out what happened because they are myoptic to the mega-shift in the economy that is taking place.
The dominate players are now the Asians, the S. Americans, and the Mid-East. Europe and N. American are oysters that suck in whatever falls to bottom and cannot get out of the way of themselves. The world is changing before our eyes and we are about to become a second rate nation but not before we spend ourselves into the poor house fighting wars for everyone else.
As bad as it is that Wikileaks leaked the info, what do you think about Saudi Arabia and others urging us to bomb the Iranians...who does it benefit the most? Those who urge us to bomb them. Who does it hurt the worst? Us....those mad bombers.
I have a lot of Realtors ask me "When will prices improve?" My stock reply is when the price stops to fall... or as a smart young banker noted to me one day... "We held on to repo's too long thinking we'd get our money back when "things got better"... now we realize that things are not going to get better so we cannot even get what we could have 2 years ago....and it is going to force us to have a fire sale soon and give it away. And at that point, we will see land prices go up...after our inventory is already gone." My calculation is that they can only hold land for 5 years...we have at least 2 more years before the flood of shadow inventory has to come off the shelf and when the recent surge in foreclosures those who grimly were hanging on now realize they should have thrown in the towel early on, resumed their lives, and the banks should have had the fire sale already. This could easily string out another decade or longer.
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