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Jim
Posted 11/12/2007 08:14 (#236340 - in reply to #236325)
Subject: please...


Driftless SW Wisconsin

Please don't turn this into a political discussion!

There are obviously ONLY two ways to balance the books for ANY organization whether it be a farm, a candy store or a country:

You can either reduce your out go or increase your income. Again there is no free lunch. The longer this goes on however the more the dollar will drop and the more painful the solution on either side of the ledger IF we address the dollar at all. 

That is the point of the Market to Market analyst, that ag prices (along with fertilizer, oil and everything imported and priced in dollars) will naturally adjust to the fluctuation in the dollar. Period. In fact the analyst said at one point that the 'world doubts that we have the will to balance the books' (from EITHER income or outgo side of the ledger) and at that point the dollar adjusts to reality.

Ag inputs in such as rent seem also to increase with the change in base prices of dollar based commodities.

If you look at beans ( a dollar based world wide commodity) for example in EUROS rather than dollars, $10 beans/$1.46 dollars per Euro =  6.84 Euro beans which is maybe the recent historical "normal" price when the Euro and the US dollar were generally about 1:1 in value. In Euros the current price of beans in dollars is perhaps just "adjusting" to normal.

The idea here is what is important.

This is economics, not politics. This is Marketing, not the Forum page.

Please don't turn this into a political discussion!

Thank you.

Jim at Dawn



Edited by Jim 11/12/2007 08:50
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