Whether the price of fed cattle will be 10 cents lower in Canada in two years is really not the point of this thread. The point is the effect a rising or for that matter a falling dollar would have.
“The last time we were at par we did not stay there long…” History does not necessarily repeat itself, at least in a predictable manner. Things change. You need to keep in mind that the dollar used to be pegged to the gold standard. That has changed. Since 1974 the U.S. dollar has no longer been backed by gold or silver or a combination of the two. Your quotes of interest rates in the 1920s would therefore be somewhat questionable as applying to today’s situation. Did you know that in 1963 the words “Will Pay to the Bearer on Demand” were removed from U.S. bills? The dollar today is only worth the intrinsic value people place upon it.
The title of this thread is rising dollar but has anyone considered that the dollar is falling, not rising? When we consider the value of the dollar in terms of the value of gold upon which the currency used to be based, the value of all our dollars has decreased even more.
Consider this if you will…In another thread I pasted a quote about Betting on Agriculture. If you pay attention to how much the value of world currencies have decreased against standards like gold then why not consider the possibility that cattle have quite a bit of upside potential, no matter what a cattle cycle or other tea leaf readers might say.
The price of gold bottomed at about the same time as our dollar in 2001. Since then the price of gold has gone from $264 to $600 U.S. dollars while our dollar has appreciated 42% against the U.S. dollar. The reality is both currencies have lost a great deal of value against gold.
As always, I enjoy bouncing ideas of the Agri-ville crew but duty calls and we are getting busy with field work. This will be my last post for a while. If I might leave a message it is that there is more upside potential in cattle than one might think and the future might be bright after all.
“The last time we were at par we did not stay there long…” History does not necessarily repeat itself, at least in a predictable manner. Things change. You need to keep in mind that the dollar used to be pegged to the gold standard. That has changed. Since 1974 the U.S. dollar has no longer been backed by gold or silver or a combination of the two. Your quotes of interest rates in the 1920s would therefore be somewhat questionable as applying to today’s situation. Did you know that in 1963 the words “Will Pay to the Bearer on Demand” were removed from U.S. bills? The dollar today is only worth the intrinsic value people place upon it.
The title of this thread is rising dollar but has anyone considered that the dollar is falling, not rising? When we consider the value of the dollar in terms of the value of gold upon which the currency used to be based, the value of all our dollars has decreased even more.
Consider this if you will…In another thread I pasted a quote about Betting on Agriculture. If you pay attention to how much the value of world currencies have decreased against standards like gold then why not consider the possibility that cattle have quite a bit of upside potential, no matter what a cattle cycle or other tea leaf readers might say.
The price of gold bottomed at about the same time as our dollar in 2001. Since then the price of gold has gone from $264 to $600 U.S. dollars while our dollar has appreciated 42% against the U.S. dollar. The reality is both currencies have lost a great deal of value against gold.
As always, I enjoy bouncing ideas of the Agri-ville crew but duty calls and we are getting busy with field work. This will be my last post for a while. If I might leave a message it is that there is more upside potential in cattle than one might think and the future might be bright after all.
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