Posted 7/30/2020 11:53 (#8404851 - in reply to #8402437) Subject: RE: Gold, $, Interest rates
northern edge of north central Missouri
WeaveFarmer - 7/29/2020 07:32
Gold is at all-time highs, the dollar (quoting Wall St. Journal) is "on track to close out the month having it's worst month since April 2011" and interest rates were at all-time lows last week.
Is this the best time to be in farming, worst time to be in farming, or somewhere in-between?
I priced trading in my combine with 1300 hours (bought as demo w/ 100 hrs. on it) a few weeks ago. Sure looked a lot prettier to me after seeing the dealer's numbers.
Usually a lower dollar means better commodity prices, and low interest rates means you can borrow $$ easier....
Maybe none of the above matters anymore, what only truly matters is how much relief the government will send your way, in the form of ARC/PLC, PPP, Covid payments, MFP payments, subsidized crop insurance, etc.
Just curious to hear other's thoughts.
EDIT: Stock market is highly valued as well, and Fed releases comments today after their two day meeting.....
Money flowing. Extreme inflation ahead ? IDK Seems likely. If it were isolated to just United States and our currency would be easier to predict. A currency resetting of some kind, possibly one world currency. Some fear this with a biblical fear. Quite justified. I don’t see that because The world doesn’t seem organized enough for that to happen.
So I’m thinking how to position but can’t get even a decent idea. Simple viewpoint is hyper inflation which says to own anything but dollars. My gut says it’s more complicated than that. Just don’t see how you can just print this much new paper money without worldwide fallout. Crypto’s are now credible too.