Competitive Currencys, and grain prices?

[TOM4CWB]

Parsley,

I understand the folks in Argentina are sort of there!

A government that is disfunctional, a place where noone wants to invest new money, but life sort of goes on!

Question, money is a tool used to facilitate trade, why should anyone be given the right to extort this tool, (interest), just for providing the tool?

I question the sustainability of the whole system, when I borrow money to produce something productive,no funds are created to pay the interest that I will owe while paying back these funds!

Now one of three things must happen:

1. Deflation, the money comes from someone else to their loss.

2. Loans, the money is created and spent, allowing my loan to be repaid with interest if I am given some of these funds while trading some of my product I helped produce.

3. Currency devaluation, creates the money by devalueing everyone elses assets within that monetary system.

I understand Japan has had 0% effective interest rates for some months now!

A system that pays Interest on money, ...

...is not a sustainable system,...

...but noone wants to own up to this fact!

So where does this put us Parsley?

It hurts peoples brains just to think about this fact, so everyone avoids it, and calls anyone bold enough to talk about it, ... a fool...

What is the answer?
We need another system to alocate credit than the banking system using interest!

Interest will transfer the assets into the hands of those responsible for loaning the funds, at some point in the future they will own everything by doing nothing productive, but creating the currency that was the rightful property of the people to begin with!

When will society understand that our monetary system as it operates today is neither sustainable, equitable, or productive?

[charliep]

Tom4cwb

Isn't money an asset just like everything else - land, equipment, labor, inputs? Shouldn't people who provide that asset be paid?

Are you suggesting the only access to money/farm capital be via equity financing? What about people who want a secure funds (eg. retired people who rely on their investment for living)?

Just a comment that I like everyone else in this thread is enjoying the benefits of low interest. It makes it interesting though when you are advicing a parent (someone over 65) in their investments. It takes a lot of money to generate guaranteed living expenses at current 2 % to maybe 3 % with shopping and 4% if you are willing to commit for a longer period.

An interesting sideline as we think about our non farm investment strategy. Where does a person put money if you don't have a high risk tolerance?

[TOM4CWB]

charlie,

some may want you to believe that money is an asset like everything else, but is it really?

If I own land, or business, or products that produce a productive capacity, then it is actually worth something.

But a ledger line in a savings account really means nothing to anyone.

Since the Canadian Banking system needs really no gold or deposits to issue credit, money is a fluid that makes the system work, as long as there is confidence in this system!

I am just encouraging people to do productive things for their community with their assets, instead of trusting them with bankers or baystreet.

Money can't make anyone happy, only people are happy when they choose to love their neighbour and make this world a better place!

On the currency side, wouldn't you agree there is a problem?

On the competitive side I see because of this issue Edmonton is the best place in the developed world to do business!

Life is a state of mind, cold winters aside...

[ianben]

Isn't money a commodity just like grain etc.
The same speculators are out there taking the risk, supposedly finding the market value of each currency.
Is there any difference?
Can one be good for farmers and the other not?
Some differences I note. The ordinary guy is not encouraged to hedge or buy futures with his income. A bank does that for him with the hope of providing stability and maintaining confidence.
With grain we should all train to be master marketers and join in.
Is this good for stability and confidence in grain marketing?
The value of currency and grain have a big effect on our bottom line can we really manage the risk individually?

[ianben]

Money is a commodity and if you are trading in the commodities market for ex. Hedging beef cattle you should also hedge the feed (barley or corn) plus hedge the dollar in, to be turely protected from all that can go wrong in your little world. Now on a grain hedge you should be doing the same type of thing but in order for the normal farmer to do this properly you would need a broker,an accounted, a lawyer, a good banker. The possiblity of most farmers doing this is very remote.

I might added that if farmers have to hedge into the future to make their business work they had better find something else to do that does not require this much credit risk.

As often as you would make money on the commodities market you would also lose as often or more often. Just the same as in real life. So why complicate it with hedges options and whatever. Use a pricing order and you get to name the price. If your reasonable with the open market you will obtain your price 8 times out of ten and be in the top 1/3 of the pricing in that year. It makes money for YOU not brokers and bankers.

Don't think about our currency and its value we don't have to buy much from the US and if you look carefully you will find that we will pay a lower price than an American will for an American product.

The sky is not falling and if it did it was caused by mother nature and we have no control on it even if it is a human made disaster. Humans are part of mother nature and control is very flitting.