Europe

[cottonpicken]

The europe has imploded.

Greekl 1 year bonds 82%.

Deutsche ceo just gave a speech and said a full on
crisis was here.

Most banks are insolvent and need recapitalization.

This is the domino in the global derivatives market.

[jensend]

had relatives from germany here last month. they hear how bad it is in the usa. the americans talk about how bad it is in europe and the canadian bobbleheads talk about how canada is in such great shape compared to everybody else. the truth is we're all screwed and every country has been lying to its own citizens. the standard of living we've enjoyed has been built on debt and now we'll all take a hit to pay for what we have had.

[hedgehog]

very true, but us farmers have had a pretty crummy standard of living for 25 yrs. we have nothing to fear.

[sumdumguy]

Debt will be the killer. In the 30s cash was king,
what you all think? If interest rates spike, what
then?

[wd9]

People can't pay for the loan and everything defaults, gets taken away and you start again.

[poorboy]

Is a huge recession going to make all commodities crash due to poor demand? I can see oil, lumber, steel falling in price.

Not sure what to think on grains. In the 30's the grains tanked also, but ag was a big part of the recession. Too much grain, so massive surplus and low prices in 30's, with a lot of people living on farms they had the cash shortage.

Today, it should be the city folk, over paid civil servants and oil patch workers that bear the brunt of a recession.

Can't help but feel that we are not immune in Ag either. There is no real shortage of grain.

[hedgehog]

wheat collapsed in the thirties because russia tripled its exports of grain, causing 20 millions at home to die of starvation and millions more going hungry.
Stalin wanted the cash to buy western technology, so he sold wheat at any price. he hadnt paid the farmers for it, so like all stolen goods, a very low price was still a profit.
World grain prices wont drop too much in this recession, the fundamentals are still strong.
People have to eat!

[cottonpicken]

Please remember,we are in a currency crisis.

A currency crisis did not or could not have existed
when everything was tied to gold.

Although fdr did revalue to 35.

Now what path of least resistance does the global 200
trillion dollars want to take...........for the ten
thousandth time in 8 years....TANGIBLES!

[Mjolnir]

So are we talking about a '70s style recession then? My dad told me he bought a Corvette with 1000 bushels of flax he "forgot" about in storage on the coast. He got $11.00 per bushel, Corvette was 7400. Sold the car a year later for more than he paid. I've been dreaming ever since.

[cottonpicken]

Its exactly like the seventies,but instead of bond rates
going to 18%,we have started monetzing
bonds,printing money to buy them.