The Deflationary Risk of 2018

[errolanderson]

Realize, this topic may stir the pot, but IMO, there is a heightened risk of deflationary pressures heading into 2018.

Spiralling gov't and consumer debt combined with sluggish economic growth is sending a stark warning. Deflation is also an uncontrollable enemy of central bankers. Central banks have had little success kickstarting inflation despite astronomical stimulus (money printing).

Now central banks want to begin to unwind their massive balance sheets. A very dangerous economic situation.

Deflation is good for bonds, not so good for energies and metal markets. It suggests that commodity rallies have a short shelf-life. It will impact real estate. It will impact equities (IMO).

To me, global markets have yet to recover from the crash of 2008, despite record-breaking U.S. equities. The sleepy VIX is apt to awaken. Which begs the question. . . .

[burnt]

What?

Now, now, sir, enough with the fear-mongering.

As you should well know by now, facts don't matter in our day.

[SASKFARMER3]

I agree it will happen. Vehicles it is already starting.

Other stuff will be next.

[sumdumguy]

I agree it will happen. Vehicles it is already starting.

Other stuff will be next.

You say "it" will happen. What is the "it"?

[errolanderson]

burnt . . . 'What?' and sumdum . . . 'it' are two very good questions.

Global central Bankers meeting at Jackson Hole right now . . . Jackson Hole, 2018 may be interesting.

[sofa.king]

The "it" you speak of is hard working people who save money and build a nest egg will be screwed. The liberal party and their goat faced leader will bankrupt this country with their spending spree. There is already talk of cutting cpp for canadians who make too much money.

[danny W1M]

SF3, it's easy to drop the price for pickups when you sticker them at $70,000 to $80,000.
When vehicles are priced like that, what does it say about $6.40 #1 13.5 Wheat?

[errolanderson]

The "it" you speak of is hard working people who save money and build a nest egg will be screwed. The liberal party and their goat faced leader will bankrupt this country with their spending spree. There is already talk of cutting cpp for canadians who make too much money.

Pension failure risk (IMO) may be what will pull-the-rug from under this financial deck of cards . . . .

[Guest]

It has to happen . Infastructure cant be replaced . Wages and equipment priced out of reach . A bridge near here had to be repaired after our 42" rain last year . 30' wide 75' long. Million dollars to replace. Just to repair was $500 k . Cant be done. Not sustainable . Get ready to get by with less

[burnt]

SF3, it's easy to drop the price for pickups when you sticker them at $70,000 to $80,000.
When vehicles are priced like that, what does it say about $6.40 #1 13.5 Wheat?

In 1978, I paid for my first pickup - GMC Sierra 4x4 - with the PROFIT from 45 steers. $8500.00. Yup, just the profit.

Today it would take a big chunk of the entire cheque from 45 steers to do the same.

[LEP]

Caseih, I agree a 100%. We are adding new overpasses yearly and then we have to replace old ones.Replacement of bridges, roads, water, sewer, and waste disposal are unsustainable already. Now let's add carbon taxes and waste money funding overseas climate projects. Bigger and bigger govt payroll and waste. We are FUBAR.

[Tucker]

As shitty as farming and taxes can be some times we all are still in a pretty good position. We have a pretty small farm but I can still pull the pin any year I want if I get feeling overtaxed and unappreciated and spend the rest of my life blowing the many millions this place is worth. That's the thing these liberal ****s like grassy and chuck don't really understand even though they think they do. Maggie Thatcher said it best: 'The problem with socialism is you eventually run out of other people's money' Good luck taxing me in Belize. Maybe all your illegal Muzzie immigrants can drop the same volume of grain through the grates as I do every year. Tax the shit out of me at your own peril.

[hobbyfrmr]

As shitty as farming and taxes can be some times we all are still in a pretty good position. We have a pretty small farm but I can still pull the pin any year I want if I get feeling overtaxed and unappreciated and spend the rest of my life blowing the many millions this place is worth. That's the thing these liberal ****s like grassy and chuck don't really understand even though they think they do. Maggie Thatcher said it best: 'The problem with socialism is you eventually run out of other people's money' Good luck taxing me in Belize. Maybe all your illegal Muzzie immigrants can drop the same volume of grain through the grates as I do every year. Tax the shit out of me at your own peril.

Sweet.

[grassfarmer]

.... That's the thing these liberal ****s like grassy and chuck don't really understand even though they think they do. Maggie Thatcher said it best: 'The problem with socialism is you eventually run out of other people's money' .....

How little you know. Never voted Liberal in my life, voted for Margaret Thatcher's party every time I was eligible to.

[farmaholic]

Is there an unwritten rule somewhere that says two people who voted the "same way" can't disagree?