Posted 11/27/2012 07:14 (#2718969) Subject: Government doing nothing is best for economy
Tom Sewell stated that the best thing that government can do for the economy is leave it alone. I know 42000 regulations are being enacted every day under Obama, but a lot of regulations don't have money behind them or need lots of clarification. It's also a lame duck session for congress and there are some differences of opinion on policy (hopefully). It will be interesting if there is a bump in economic activity early next year because of this. It's still the US and there are folks that will forge ahead regardless of the environment - maybe just a little break is just what they will need.
What does this mean to us? I still think ag runs counter to the rest of the economy. If there are folks investing in our products and infrastructure, it means lots of other things are not doing so well (investment of last resort? run to safety?) A better economy might mean we see some back off in grains and possibly land for a while. Naturally if the business environment gets regulated away, money will flow back to ag and it will be business as usual.
New marketing strategy - timing lulls in government activity. I'm probably already wrong as commodities are rising and I'm about to sell more $6 corn for next fall - the better plan is to do the opposite of me btw.