Fiscal cliff and grain prices

[liberty]

Count on Bernanke to juice the money supply even more than he is presently doing in order to counter the negative aspects of higher taxes and increased regulation of the American economy. That's going to be positive for commodities and gold. The U.S. is destined to inflate its way out of its debt problem. The fact that this creates an inflation problem is....well...a problem for the future. There is no plan beyond that. I can't see this mess imploding more than five years hence.

[errolanderson]

liberty . . . how do you inflate
yourself out of a debt problem?

The only way out of this crisis (IMO) is
bankruptcies, foreclosures and the new
green economic buds (those with cash)
appear purchasing indebted companies for
pennies-on-the-dollar. There has to be a
new economy and a changing of the guard
in the rich.

Central bank intervention does not
create wealth, but just kicks-the-can
down-the-road. This has got to end and
the pain has to begin to fix this mess.

[TOM4CWB]

ASRG,

It really depends on where the Arab Spring is actually headed.

$Billions flowing in from oil revenues... is there actually going to be a peace dividend?

WW2 is a good example. The US let things pile up (Germany/Japan/Spain)... and we had a horrible mess (Russia added to it). Will Obama abandon Israel... ???

The extermination of Israel is high on the list of many Middle Eastern nations. Obama said he would stand behind Israel; and in the end... I think he will be forced to by politics at home.

Food in the end... is the biggest peace dividend... and feeding hungry people the highest worldly calling down in the here in the material realm.

China and India now are the backbone of the world economic system. The US/EU have provided the tec solutions to advance the prosperity. Negotiation of debt 'forgivness' is likely next for southern Europe.

Obama is the key. I personally do NOT see future direction changing significantly; just as here in Alberta/Canada with Provincial/Federal politics.

Cheers!

[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