Here are the latest news items and commentary on current economics news, market trends, stocks, investing opportunities, and the precious metals markets. We also cover hedges, derivatives, and obscura. And it bears mention that most of these items are from the “tangibles heavy” contrarian perspective of SurvivalBlog’s Founder and Senior Editor, JWR. Today, we focus on the impact of recent floods on grain prices and the implications for poultry and other livestock producers.
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Economy & Finance:
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Charles Hugh Smith: The Coming Crisis the Fed Can’t Fix: Credit Exhaustion
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This comes as no surprise: US Freight Volume Drops
Budget and Monetary Policy:
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Self-Destruction: Cheerleading the Process. Here is a selection from the article:
- Individuals become debt-slaves for much of their life via mortgages, credit cards, student loans, auto loans, payday loans and more. Most people support the banking cartel and self-destructive debt-slavery.
- Governments don’t control their spending, fall deeper into debt and create their eventual self-destruction. Debt, deficits, devaluation, destruction of purchasing power and inevitable inflation occur – thanks to the political and financial elite.
- Governments, encouraged by military contractors, arms dealers and special interests, engage in costly and pointless wars that accomplish little. Wealthy individuals and powerful cartels benefit and the masses pay with lives, devaluations and price inflation.
- Governments approve social legislation to enlarge their power base, buy votes, and reward those who supported the politicians. Much of this legislation is counter-productive, costly and self-destructive…”
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US Budget Deficit Hits A Record $234 Billion As Interest On Debt Soars. JWR’s Comment: At some point, the piper must be paid. Be ready for that ugly day. We could very well see a full-scle meltdown of the U.S. Dollar. And along with it, most dollar-denominated investments. One alternative that will survive this will be tangibles.
The big news headline: U.S. farmers face devastation following Midwest floods. The article begins:
“Midwestern farmers have been gambling they could ride out the U.S.-China trade war by storing their corn and soybeans anywhere they could – in bins, plastic tubes, in barns or even outside.
Now, the unthinkable has happened. Record floods have devastated a wide swath of the Farm Belt across Iowa, Nebraska, South Dakota and several other states. Early estimates of lost crops and livestock are approaching $1 billion in Nebraska alone. With more flooding expected, damages are expected to climb much higher for the region.
As river levels rose, spilling over levees and swallowing up townships, farmers watched helplessly as the waters consumed not only their fields, but their stockpiles of grain, the one thing that can stand between them and financial ruin.”
JWR’s Comments: Destroyed stored grain and delayed spring plantings will surely create chaos in the grain commodities markets. This will mean shortages, and higher prices at all levels. Anyone who is preparedness-minded should top off their stored grain reserves, ASAP. This has implications for poultry and other livestock producers. Anyone who feeds their livestock with grain that they don’t grow themselves should consider reducing their flocks and herds, in anticipation of grain price hikes. Chickens that are butchered and tucked in chest freezers don’t gobble grain.
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Farmland Values and Debt: Illinois, Iowa and Nebraska. JWR’s Comment: The recent flooding in Nebraska and several adjoining states may prompt some farmers to sell. It may be a “take the insurance money and run” situation. This will probably depress land values for a least a year.
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The folks at Palmetto State Armory (PSA) are running a short-term special: 1,000 rounds of Federal 5.56mm NATO ball ammo and 10 MagPul 30-round PMAGs, with free shipping for $350 (or just $299 after Federal’s rebate.) At the PSA web site, put “SKU#KIT-0293” in their search box. Such a deal!
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Please send your economics and investing news tips to JWR. (Either via e-mail of via our Contact form.) These are often especially relevant, because they come from folks who particularly watch individual markets. And due to their diligence and focus, we benefit from fresh “on target” investing news. We often get the scoop on economic and investing news that is probably ignored (or reported late) by mainstream American news outlets. Thanks!