Deflation

Gold went a little crazy today!

It would be interesting for sure. Unless a guy has cash to sink into the land then it involves debt and allowing the bank to have their grub hooks all over your other assets. The way banks are acting these days does not instill a lot of confidence that they are stable in any way. Even getting a LOC is very onerous and should make a guy nervous. What's the point in "owning" a bunch of land if the banking system collapses and all your assets get dragged in and lost...
Makes me wonder if there is any other way to transact in fiat and do business without putting your fiat into the banking system?

Lots of things on my mind, no answers because I don't know what the guys pulling the strings will do.

Yes, as SWMan says, we need to be careful of banks. It happened in the 1980s, it also happened to home owners in 2008. Banks got "in trouble". Create money out of thin air and have legal right to take real assets and they get in "trouble". No they don't. At least not the banks that are in charge of the scam. So we need to be wary of banks and another manufactured crisis. If you can't pay your debt when called then you may have an issue. Remember bank bail-in laws just invented and implemented about 10 years ago? Stuff like that is a concern. Banks also get to keep playing in the casino with your savings (and also your debt obligations), that is not how a sound financial system is built but our system is not designed to be stable.

We start thinking of counter party risk then. You make a deal with another party when you take on debt, buy a bond/gic, hold stocks, trade futures. Land has its own counter party in the way taxes can be levied and you have ultimately no say. And of course government can do land grabs and also wealth redistribution - while unlikely, it still exists as a risk. Gold and silver is one of the few things you can own without having a agreement or trust with someone else. Yes, government can try and confiscate but I suppose the response is how much was actually taken by the government back in 1935 and how much got lost. So there is a case for metals. As for the Mad Max scenario which peoplelike to counter with, there have been a few - the fall of Rome, any regional war, WW1 and WW2, those kinds of events would be the end of structured life if you lived in the epicenter, did possession of tangible wealth loose its value and become worthless in regards to food and shelter or did something like gold still hold some value when faced with total destruction. I don't think of a Mad Max world, our world is already changing greatly and we still plug along. The major war of our time is being fought right now, it isn't about borders or putting a flag on a piece of ground - it's about controlling people and resources and that is being done by entities you can't see. And so with this war going on right now we may even have gold and silver being the one thing to actually hold in our "Mad Max" environment.

The $us is backed by "full faith and credit" in the US government. How is that playing out? Who trusts the US government to protect the $us? Probably very few. $1T debt being added every 3 months is your answer. Now add in the interest on that debt and you start getting a picture of the level of currency destruction you are living in. There is a war going on, it may even be "Mad Max" levels in another year, but if the vast majority of the people are too dumbed down to even see it, does that mean it doesn't exist?

Nice thing is the system allows for infinite wealth to be created out of thin air as well as apocalyptic level of destruction by saying there is a banking crisis. So we don't know what the future holds. But I would bet the $us is not going to keep being the symbol of wealth or stability for decades to come. Something will change, the question will be who gets screwed over the hardest when it changes. And the planning centers around minimizing your exposure. Counter party risk centers around "risk". Lots of gains being had right now by putting your wealth in to risk areas, risk pays well. Just have to be careful of the chance that risk actually shows why it is considered such.

Still think the precious metals in the Mad Max scenario are blued steel, brass, and lead.
Fiat money will be worthless, so will cyber money, as the power grid will be down most of the time until it is totally ruined.
My guess is food and water will be the most coveted.

Do you think farms like Monnette who 350 000 acres actually prevent deflation ?
I think the banks are slaves to their debt now ? Wouldn’t they be ?
I am impressed how they can attain so many assets since 2015 .
I don’t know how they do it , because I know I can produce a unit cheaper ! Bully for them .
Point is companies are getting mammoth now and are doing it currently in a high cost environment. Deflation would kill the banking system like the housing burst !

I see they are clearing bush land north of ste rose. I heard guys who farm south of that area say it is garbage land. I know first hand from clearing land in the sprague mb area it can produce decent crops , but it is very costly to do, especially now I don’t think they are buying it for 250 an acre. I heard bush land is up to a thousand .
As long as this expansion continues it will drive up our good ground!
Wouldn’t this company be struggling from drought as well ?

One farm operation is definitely not going to prevent deflation, and is most likely the first to be wiped off the map in a scenario where banks have a "crisis". A crisis is where banks have loans on the books for assets that have dropped in value. Yes, it is BS because the banks create "wealth" (ie dollars) out of thin air to lend out, charge for that, and then take assets when there is trouble. And no, the government is not actually that effective at regulation of such things. It is no coincidence that banks have paid something like $42B in fines for outright criminal actions yet continue as usual and no one even looses their job, let alone jail. The same government doing oversight of the banking sector, inflation, economy etc is the same government managing the borders. That should tell you all you need to know about another banking "crisis". It will happen if the banks decide it, not because government suddenly did their oversight.

It is why I say to pay attention to your net worth. That is a banking thing, net worth is variable, your debt is fixed. Trouble hits when your net worth declines due to trouble elsewhere. Sure, it will never happen. Except those guys who bought homes in 2010 for 1/3 the price of 3 years earlier can probably remember what did happen. And the people who no longer owned the homes can tell you what happened.

Notice on the "migrant" thing that government and news completely stopped talking about why people are moving to western countries? The reason used to be war. Iraq, Syria, Libya, etc were all creating these masses of people on the move. But now we are seeing people from South America, Central America, India, and all over coming in as illegal entrants and the government and media doesn't even bother to touch on why.

Our government is intentionally destroying the country via massive immigration. This is the same government in charge of oversight for all things financial. Does not take a brilliant analysis to say the government is not ensuring a stable system.

News this week is inflation is still going on. Yes, debt keeps being plowed into the system via banks, central banks and government so the currency is loosing power. And so the "markets" and "experts" are feeling even less confident about rate cuts. Again, who are the idiots that say rate cuts are needed in a "booming" economy.

Keep an eye on your assets, and that means unsold grain. People don't stop eating for a year once all the Russian grain is bought and Ukraine grain dumped on the world. Other grain is still needed. But it's value should not be set by what grain was 5 years ago, it should be set in dollars based on the currency destruction taking place today.