Re: Why the rich are buying farmland
[Re: KeithC]
#7369942
10/02/21 09:13 PM
10/02/21 09:13 PM
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Joined: May 2010
Posts: 10,485 MN
Steven 49er
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Take note when the rich start moving their money to real assets. It's the only way to keep wealth during periods of rapid inflation. Anyone saving large amounts of money right now is going to be robbed by the democrats, who are intentionally creating a huge amount of inflation. Keith In my opinion the inflation we are experiencing now is caused by money printed in 2020. That is why I don't believe this is transitory. The presses are still going full on. Could be wrong. Kansas Cat, my definition of hard assets are real estate like rentals, farmland, precious metals. Thing that if the dollar gets destroyed are still tangible. The price of an acre may drop but it's still an acre. I don't put Bitcoin in the hard asset class. At least not yet. K Cat, I wonder if these people are paying cash, why when you can borrow money below the rate of inflation.
"Inflation is always and everywhere a monetary phenomenon". Milton Friedman.
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Re: Why the rich are buying farmland
[Re: Cragar]
#7369969
10/02/21 09:34 PM
10/02/21 09:34 PM
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Joined: May 2010
Posts: 10,485 MN
Steven 49er
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I don't but I'm a contrarian
"Inflation is always and everywhere a monetary phenomenon". Milton Friedman.
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Re: Why the rich are buying farmland
[Re: Kansas Cat]
#7369982
10/02/21 09:53 PM
10/02/21 09:53 PM
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Joined: Jan 2017
Posts: 10,155 Marion Kansas
Yes sir
"Callie's little brother"
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"Callie's little brother"
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Posts: 10,155
Marion Kansas
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We will at some point reach "peak food". It is interesting to speculate what this will look like. I can send pic. I reached that point at supper tonight
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Re: Why the rich are buying farmland
[Re: Kansas Cat]
#7369984
10/02/21 09:55 PM
10/02/21 09:55 PM
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Joined: Oct 2011
Posts: 2,792 Western Shore Delaware
SJA
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We will at some point reach "peak food". It is interesting to speculate what this will look like. Soylent Green
"Humans are the hardest people to get along with." Dr. Phillip Snow
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Re: Why the rich are buying farmland
[Re: Kansas Cat]
#7369994
10/02/21 10:19 PM
10/02/21 10:19 PM
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Joined: May 2010
Posts: 10,485 MN
Steven 49er
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Corporations own plenty of real estate. I don't consider common stock to be much more risky than previous metals or land. They can all experience substantial reductions in value. Did you own common stock in Enron? GM? Lucent Technologies? We have different philosophies. Without the bailout and unrestricted money creation that happened in 2008 and the one that is ongoing right now that started in 2019 we would be in a whole different place. Can they print money forever? What happens when they can't and eventually they won't be able to print anymore. PMs have risen and fallen but I don't see any risk. Their prices could go in half tomorrow yet if you have an ounce of gold would still own an ounce of gold. Land prices can drop yet if you own it it's still an acre of land that can produce value, albeit they could tax you right out of it. Real estate and PMs could go to zero tomorrow and yet eventually they would have value again. Gold and real estate have had value for several millennia, through 2 world wars, pandemics, and plagues. We will at some point reach "peak food". It is interesting to speculate what this will look like. I agree. It's also interesting to speculate what it will look like when the DXY market drops into the mid 80s or lower. 150 dollar oil? 12-15 dollar corn?
"Inflation is always and everywhere a monetary phenomenon". Milton Friedman.
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Re: Why the rich are buying farmland
[Re: white17]
#7370265
10/03/21 10:57 AM
10/03/21 10:57 AM
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Joined: Nov 2014
Posts: 1,941 east central WI
Dirty D
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Seems to me that most privately owned land is better cared for than a lot of public land.
I would agree with that, around me the state/feds owned land is poorly cared for. The "natural" areas are not maintained at all. No prescribed burns in the prairie plantings, no invasives control every where else. In time at the current management we'll end up with one large patch of buckthorn, garlic mustard and Reed canary grass.
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