Asset value reset?

[Crestliner]

So things have not made sense for quite some time down on the farm. Is this the beginning of a reset on assets and costs?

Low demand, tighten the battle hatches? I saw a tractor for sale all winter for $150K now listed for $100k cash blowout....is this the beginning of deflation in farm country, land , equipment and input costs....God knows we have had deflated income already.

[blackpowder]

Never say never. And it feels like it yes.
But land a solid asset. Interest at zero. And the cost of new machinery can't go down. Unless it too made in China with no bells and whistles, or driverless someday. Overproduction could give us some price reset on used for now.
Which leaves inputs. And it suggests they can just make less of those too.
1929 event would be needed. No one wants that. Govts have to print more money. Eventually banks will just have to write national debts off.
20% cheaper assets maybe.

[Austrian Economics]

Never say never. And it feels like it yes.
But land a solid asset. Interest at zero. And the cost of new machinery can't go down. Unless it too made in China with no bells and whistles, or driverless someday. Overproduction could give us some price reset on used for now.
Which leaves inputs. And it suggests they can just make less of those too.
1929 event would be needed. No one wants that. Govts have to print more money. Eventually banks will just have to write national debts off.
20% cheaper assets maybe.

Writing off national debts means no more payment to creditors. Then you will have massive bank failures which will make 1929 look like a Sunday school picnic. Pension fund payouts will go to zero. No one should think that some sort of "debt jubilee" is a harmless event. You will have mass starvation, looting and chaos once the division of labor goes into reverse. Land will not be a solid asset if people lack the means to buy the food that is produced on it.

Printing more money is simply a formal admission by governments that they will no longer honor their debts.

[beaverdam]

Never say never. And it feels like it yes.
But land a solid asset. Interest at zero. And the cost of new machinery can't go down. Unless it too made in China with no bells and whistles, or driverless someday. Overproduction could give us some price reset on used for now.
Which leaves inputs. And it suggests they can just make less of those too.
1929 event would be needed. No one wants that. Govts have to print more money. Eventually banks will just have to write national debts off.
20% cheaper assets maybe.

Hope you bought that tractor, because in hindsight, that may have been a very quick, fleeting, window, to purchase.
Grains on the board are nice and green this morning, and I'm just wondering if thought's about food security are starting to hit home. There are a lot of steps and different supply chains in order to get a crop planted, then again to get harvested grains to processers, and on to retailers.
I don't think there will be deflation when our CAD keeps dropping.

[bucket]

Ask yourselves this....who is going to have the product to restock the food shelves?

The guy that owns bitcoin or the the guy with a few acres and a tractor?

[Taiga]

How is bitcoin doing now anyway, is it still ‘a thing’? I never did take that seriously.

[bucket]

How is bitcoin doing now anyway, is it still ‘a thing’? I never did take that seriously.

Don't know , don't care ...can't eat it is all I know...

[AlbertaFarmer5]

Writing off national debts means no more payment to creditors. Then you will have massive bank failures which will make 1929 look like a Sunday school picnic. Pension fund payouts will go to zero. No one should think that some sort of "debt jubilee" is a harmless event. You will have mass starvation, looting and chaos once the division of labor goes into reverse. Land will not be a solid asset if people lack the means to buy the food that is produced on it.

Printing more money is simply a formal admission by governments that they will no longer honor their debts.

All true, but do you see any other way for this to end? The ramifications of a wholesale debt jubilee will be earth shattering, it will destroy confidence in financial markets, it will send all the wrong signals, and reward all the wrong behaviours, but one way or another, and either intentionally or inevitably, it will happen sooner or later. By printing, or loss of confidence, or outright default/jubilee.

I have been trying to wrap my head around this issue for years, in the modern era, and uniquely throughout all of history, we have excess of every resource humans need to thrive, yet growth and prosperity are being almost intentionally hampered by shortages of arbitrarily defined capital, and by drowning everyone and every entity in debt.

Not a conspiracy theory whatsoever, just a thought that the monetary concept that functioned in times where the limits to growth were real tangible, limited by land base, commodities and energy supplies, are no longer adequate when we have the energy, technology, efficiencies and resources in abundance.

[bucket]

If agriculture doesnt see some benefit from this ....then farmers should be treated like every other industry and receive help as well...

[Austrian Economics]

All true, but do you see any other way for this to end? The ramifications of a wholesale debt jubilee will be earth shattering, it will destroy confidence in financial markets, it will send all the wrong signals, and reward all the wrong behaviours, but one way or another, and either intentionally or inevitably, it will happen sooner or later. By printing, or loss of confidence, or outright default/jubilee.

I have been trying to wrap my head around this issue for years, in the modern era, and uniquely throughout all of history, we have excess of every resource humans need to thrive, yet growth and prosperity are being almost intentionally hampered by shortages of arbitrarily defined capital, and by drowning everyone and every entity in debt.

Not a conspiracy theory whatsoever, just a thought that the monetary concept that functioned in times where the limits to growth were real tangible, limited by land base, commodities and energy supplies, are no longer adequate when we have the energy, technology, efficiencies and resources in abundance.

Our irredeemable fiat currency is at the root of our economic crisis. What we call money is merely a bond which accumulates interest exponentially and can never be paid off. We need to replace this IOU and start using gold as money again. Not central bank dollars denominated in gold, but a system where goods and services are priced simply in a weight of gold.

The way forward is this: tomorrow morning, put an end to government entitlement programs. Once the spending is halted, convert existing government debt into bonds with interest and principal payable in gold. Governments will have to sell assets and buy gold, but only debt denominated in gold can actually be paid off. Once that process starts, the economy will get a chance to breath again.

Ending capital gains on gold and allowing it to be enforced as payment for debt is also a requirement. Gold needs to circulate in the credit markets again. It's no good if it just gets hoarded.