Canadian inflation down to 2.3percent.

[errolanderson]

Good morning . . . .

There is a risk of deflation ahead as
there has to be a serious period of
global credit deleveraging ahead. The
world simply can't keep printing money
to solve government debt recklessness.
Reading the Calgary Herald this morning,
it's all about inflation according to
bank investment firms. Their motive is
easy to figure out . . . commissions and
as a result I take some opinions with a
grain-of-salt.

A major national paper called and wanted
a corn inflation story. I wouldn't buy
in and my comments weren't printed.

My opinion (for what it's worth) is that
the money printing game has run its
course. It will just make matters worse.
What has to happen is a period of
writedowns and a lot of banruptcies
starting in 2012. This is unfortunate,
but in order for our global economies to
re-start, this has to happen. Those with
cash will be the winners in this
environment. No banker or politician
wants to enter this arena without being
forced. It's bad for business. And it
makes for lousy media.

As far as farming, we have seen the good
times in prices for some time. Corn
won't go racing back to $8/bu for a long
spell. $600/MT canola is now a thing of
the past. Cattle prices will eventually
break. But in this economic environment,
it is bearish the loonie. That's the
good news and will buffer our Cdn ag
prices should global deflation get a
head of steam.

Our land prices will be affected when
China hits a wall . . . and it will.
China can't maintain this incredible
growth. Their banking system is already
hard hit. Also, our house prices are
starting to break. U.S. and Cdn home
prices will likely start to converge
over the next 2 to 3 years.

Anyways, my opinion is not popular. But
it is a realism that I believe, we will
all see over the next 3 to 5 years.

Errol

[Hopperbin]

No doubt China and the rest of asia has certainly been helping our canadian mining economy as the rest of the world faulters. Very high paying jobs in the mining industry. As metals etc are typically recycleable at what point does china have to slow down to to crash our mining industry. They are still at something like 8.9 which is wicked, Will a 5 percent growth rate be needed? Tuff question. Now compared to Corn , wheat etc. These are non recycleable commodities they must be grown every year. Just something I like to think about. Then again Errol a crashed American and Canadian dollar is typically good for grain prices. Another thing to take into account Errol is that a lot of Chinese have been buying second and more houses in China with cash, not borrowed money for the purpose of like vacation home like we buy cabins at a lake for instance.