Some is crop related...
Supply constraints are mounting everywhere from computer chips to fertilizer and chemicals. You didn’t have to be a Rhodes Scholar to see this happening in March 2020. What sane person would have ever thought that paying people to stay home in a world that became complacent with just-in-time deliveries could come off the rails in 2021?
Central planning is THE bane of capitalism. You can argue that this is all planned in a “build back better†environment or develop as many conspiracy theories as you would like; however, you cannot argue that this is going to get worse before it gets better. Right now the safest place for crop inputs for the 2022/23 season would be on your farm – under lock and key – with an alarm system to ward off potential borrowers.
In France, the Government is telling farmers to leave their corn in the fields – there is not enough natural gas for drying and heating homes. Death by starvation is now superseded by death by the environment. It gets crazier every day.
Outside markets are still my biggest concern. There still are quadrillions of ETF’s with the same vulnerability as mortgage backed securities that no one has tackled since 2008. If you really wanted the economy to hit the skids; that house of cards would be it and I’m hoping that no one has t witness that in their lifetime.
Keep your eyes on the prize…and that is your families and farm equity…
Thanks Larry
Supply constraints are mounting everywhere from computer chips to fertilizer and chemicals. You didn’t have to be a Rhodes Scholar to see this happening in March 2020. What sane person would have ever thought that paying people to stay home in a world that became complacent with just-in-time deliveries could come off the rails in 2021?
Central planning is THE bane of capitalism. You can argue that this is all planned in a “build back better†environment or develop as many conspiracy theories as you would like; however, you cannot argue that this is going to get worse before it gets better. Right now the safest place for crop inputs for the 2022/23 season would be on your farm – under lock and key – with an alarm system to ward off potential borrowers.
In France, the Government is telling farmers to leave their corn in the fields – there is not enough natural gas for drying and heating homes. Death by starvation is now superseded by death by the environment. It gets crazier every day.
Outside markets are still my biggest concern. There still are quadrillions of ETF’s with the same vulnerability as mortgage backed securities that no one has tackled since 2008. If you really wanted the economy to hit the skids; that house of cards would be it and I’m hoping that no one has t witness that in their lifetime.
Keep your eyes on the prize…and that is your families and farm equity…
Thanks Larry
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