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Central Missouri | O.K. so the cpi #'s confirm the inflation that we know is already there. Inflation is probably twice what the fed said. So what is the fed to do? Normally they would raise interest rates to slow the economy. Wait, the economy is already slowing plus if they slow the economy further the inflows to the fed treasury will dwindle ballooning the fed deficit thus causing a weaker dollar. If they lower rates they will cause the dollar to drop. They are for sure in a box. One way or the other the dollar IMHO will fall in the long run. To hedge this own ag commodities and prec metals. We will for sure have big pullbacks in grains at times but the trend should be up over the next 4 years. | |
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