US Fiscal cliff and land prices.

[ajl]

So if the US was to go over the fiscal
cliff (I don't think they will, since
printing money and not paying bills is
more fun) how much of a hit will grain
prices and land prices take. I think it
would knock wheat prices from 8-9 to $5-6
per bushel and take 25% off of land
prices in 2013-14.

[boarderbloke]

The US won't be going over any fiscal cliff(the media is just using that to hype the news and keep viewers). The Republicans lost the election and are already conceding their "Norquest" positions. Washington will print more money in the hopes of spurring inflation. When inflation hits, shouldn't wheat go from $8-9 to $12-15 ?

[Rareearth]

Only if the US dollar is devalued relative to other
currencies. It's a war out there, which country can
print the most, devalue the dollar the most to
maintain or stimulate exports and consumption.

[burnt]

Kind of brings another question to mind - if Chinese interests are rabidly (no spelling mistake there) buying land in the east and the west at these values, what would they do if land values were to level off or drop?

Their actions might put a floor in at these levels?

The amount of investment dollars available in China is absolutely staggering. Thus, domestic policy and conditions are much less of a factor than in days gone by.

[liberty]

The U.S. went off the fiscal cliff about 4 years ago. The only question that matters now is what will happen when they hit the canyon floor.

Central banks around the world are responding to this event and similar ones by printing money at an unprecedented clip. If all central banks do this, then the relative value of all currencies tends to remain the same. Expect gold to shine in this environment.

I believe that this monetary pump-priming is already making itself seen in the way farmland prices have moved upwards in the last two years. Recent sales in my area have seen a remarkable price jump over last year alone. We now have institutional investors, in some cases pension funds or the Chinese, entering the farmland market in a search for capital appreciation. They know little or nothing about the economics of farming however. Someone's going to get burned eventually.

[Rareearth]

Don't know who said it or where, or if it is true,
" thatthere are more millionaires in china than
Canada has people". Holly

[Hopperbin]

One million Yuan is about 130,000 canadian dollars. Pretty hard to tell who is a millionare in China they all dress like they are homeless and just fell off the potatoe truck. Sorry about that commento. Just a little trueth to it. Then there are rich parents that put their kids into education till they are 45. Then there are the rich kids that never worked a day in their lives but own properties all over the world. Any sort of fiscal cliff should sky rocket our grain prices as the usa dollar plummets and sending our land prices up astronomically. I would not sell now especially when you can get some dumb ass to rent it.

[ajl]

The fiscal cliff would actually be
deflationary since it would force the US
to actually pay their bills through tax
increases and spending reductions instead
of just pushing out new paper.

[ALLFARMER]

http://www.cbc.ca/m/touch/business/story/2012/11
/27/murray-us-japan-debt.html

How many people on here have cut back on
spending already because of fear over the us
economy?

Sounds exactly like the dirty 30's are coming
back.

Listening to how things are on Greece. I
personally have reduced some debt and will do
more. Is this causing you to bullet proof your
outfit?

[Hopperbin]

Allfarmer your link refers to china etc as entirely dependent on the USA etc. True that is how it has been but more and more we are coming to reality that China can buy us out at any time they please. How many bricks does one have to take to the head to realize that they are doing OK?

[fjlip]

But if everything "inflates", are we any better off? Just using bigger numbers with SFA left over for us. Net income would buy zip.
Either choice will make a mess. I just think which ever happens, it will be slowly, not hitting the canyon floor.

" I would not sell now especially when you can get some dumb ass to rent it.", good one hopper!
So does that mean real SMART ASSES are currently buying the $2000/ acre land?

[grefer]

The truth is,nobody knows for sure,only those that think they do.Make your best guess and live with it, as with most things.

[ALLFARMER]

All this negative talk and yet the DOW is soon
going to hit 13,000 the corporations just keep on a
goin.

[liberty]

The Dow may be hitting 13000 in nominal terms, but if you account for inflation it isn't much higher than it was at the beginning of the decade. Investing in stocks is only slightly better than sticking your money in a term deposit. But in this inflationary environment, gold stocks and gold have performed exceptionally well.

[cottonpicken]

Best performing stock market this decade was
zimbabwe's.