Fiscal cliff and grain prices

[liberty]

You cannot inflate your way out of a debt problem. Inflation is just default by another means. But central bankers do see inflation as a "solution" and are pursuing it with a vengeance.

[TOM4CWB]

Liberty,

'Inflation' is just another form of debt renegotiation for the US/EU.

WW1&2 both had massive impacts on currency... as the 9/11 war has had.

If the 'Far East' (China/India/Japan/SE.Asia) go along... it is unlikely to cause a collapse. I doubt Russia will even be bitterly disappointed. African countries are not in a position make waves.

What currency will come out on top... is another story!

[burnt]

it appears that the grains have found their own fiscal cliff in the last couple of sessions without any help from other influences. . .

[checking]

All of us should have received enough cash from the first go around to meet our needs.

Sit back and watch the snow accumulate until the silly season is over.

[rhoff]

Errol you seem to ignore the fact that inflation is
the politically easiest way to pay down debt. If the
U.S debt is denominated in 100% USD then
inflation will lower the value of the currency and
the debt. Unlike countries who have to borrow in
currencies other than there own. The only
challenge for the Americans is to out-print and
debase faster than other countries.

[errolanderson]

rhoff . . . you are right. But the fact that politicians and the electorite won't face-the-music may cost a generation ahead. And it was our generation of greed that is going to create grief for our kids and their families.

My feeling is that printing money (QE) ultimately won't work anyway . . . it is just kicking the can. And this horrid financai mess just get mesier costing a much longer-than-expected recession/depression in the years ahead.

[sumdumguy]

This is a boring mess. I think inflation will be
moderate. You say, how do you figure that.
Money is being printed but as the price of oil has
climbed for $36 dollar a barrell to $100 the
money had poured out of the US economy. So
the increased M1 has not increased disposable
income. The inflationary spiral of price-wage
increases can't happen because America has
shipped its jobs offshore and there is high
unemployment. So the leakage of money and
jobs will moderate the inflationary effect of
increased money supply. America has to figure
out how to bring back the jobs or make work.
Then we will see inflation.

[furrowtickler]

I think inflation is in our face in Canada right now, has been for a while.
We will stay inflationary until interest rates move up, and that may be a while.

[cottonpicken]

I hope everybody knows that what you think will
happen and what decisions you make will profoundly
change the amount of wealth you have in the future.

And the currency war was fought and won
already,gold came out on top.fyi

[errolanderson]

Personally, don't see much inflation in
North America at all right now. That is
why precious metals have performed poorly.

Feel we are now in the midst of a broad-
based commodity market meltdown.

Good news is; loonie may continue its
decline as a result.

[TOM4CWB]

Errol;

Broadbased Commodity Meltdown?

A 15 percent change is easily normal volitility. 50 percent would be unexpected... is that your projection?

There would be large shortages if even 25 percent drop in grain prices were sustained. WHY so negative? Will they run out of ink/screen space to print money?

[Burbert]

Are we talking core inflation er inflation
inflation, like all the sh_t we buy that
is going up, up, way up in price? Butt
things like computin machines and tvs is
dropping soooos don't worry be happy......

[bucket]

errol

You said "And it was our generation of greed that is going to create grief for our kids and their families. "

I hope you are not blaming this on the generation that is 48 right now.

I blame my parent's generation who elected trudeau and chretien that put this country deep in debt. They started the socialist state in Canada. And effectively shut down the west for 20 years.

[wilagro]

bucket: We have a FEW social programs but we do not have a SOCIALIST state.

Thank GAWD for the pensions and the medicare. Go to Mexico and see the old women eighty years old begging on the streets...you see mothers with snotty nosed kids living on the street every day with the kids selling Chiclets trying to survive.

Go on their tours to the fancy resorts where rooms are rented to the rich for 4 or 5 thousand a night and contrast that with the poor sections of ANY Mexican city.

Our social programs are necessary and if you begrudge the few we have then you are callous and not humane.

[cottonpicken]

Wilagro,that wealth gap is there because the value of
labour is stolen through inflation and paper
money,those 80 year old women couldn't
preserve/save the labour they did 60 years ago.

In a nutshell.

It would take a very long boring essay to explain it.