Friday, August 24, 2012

Bills…. Grocery and Taxes

 

Next few months going to be interesting.  Politicians will be spewing deep do do all over and spending money galore.  to  tell us how to spend out money they are spending more money…. For what?

Then there are other things going on the politicians have no control over, the weather.

The drought is going to have a major impact on our lives and the politicos' will think they have the power to change things.  Weather is driven by hot air that is not from our nations capitol.

Living in farm and ranch country the weather is very important as is the markets.  Both are closely watched and the most complaints are about the weather then the politicos' garbage.

Lots of the corn crop around here  is withering and drying up into nothing.  Moisture in the ground for winter wheat crops is minuscule.  this problem stretches across the land, right through the heart of the grain belt.

There are pockets that have moisture and there is irrigation water. These two factors are going to make some farmers very rich.  It will also take a bigger chunk out of our paychecks.

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The price if corn is headed out of the roof and wheat is following and that will pressure other crop prices to climb.  Domestic prices may climb enough to slow down exports.  Then it becomes a world wide problem.

Grocery prices have climbed steadily these past 4-5 years and are now about double over those years.  Things will push the prices into the stratosphere.  One will have to take out a loan just to buy food.

One interesting thing I read was about the requirement of ethanol.  That is being lifted and or allowed to float.  The mandate of ethanol for fuel is being floated.  I find that interesting.  Maybe the bureaucrats have felt the grocery bill in their pocket. 

Now one of the other things we are facing is tax hikes.  A choice… pay more taxes or buy food?  Will it get to that point?  Lots of discretionary spending will change.  Those out of work will even have it rougher.

Some of these problems come from politicians meddling in social lifestyles, social engineering.  Laws that dictate a certain behavior are a type of engineering, quite often is under the guise of safety or health.  They have become known as mandates.  What do they really do….. they take one’s freedoms of choice away.

As more and more laws are passed, more and more freedoms are lost.

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This farmer will soon have enough money to buy some new tractors to add to his collection.  Farming is no longer a tough life.  It has become very lucrative, plus the government sends them a nice check occasionally.  Farmers have been getting a type of welfare for decades called farm subsidy and price supports.

I run into farmers here and there that would like to discontinue lots of the government programs for farmers.  They feel they could make more money in an open market. 

Ranchers have no government support programs unless they raise a crop of some kind, like hay or feed grain.   They roll along and make a good living ranching and the meat market varies very little.  Now that will change for most beef goes to feed lots before they go to the slaughter house. 

Cattle feed prices are going up also as the grain prices go up.  The drought has also pushed the hay market up in the areas where pastures have dried up.

It is a very complex situation but also simple….. prices are going up. 

 

Have a good weekend.

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