No debt deal probably means a “new” farm bill drawn up and passed at least by the house during the last week of August/first week of September. Rumor has it Biden group talks had bigger ag cuts than Ryan’s budget.
Many farm programs have no “budget baseline” beyond 2012. With no “new” money that means big cuts for ag ahead. Budget deal is key, but will there be a budget deal. Morgan Stanley said in 2009 “no historical precedent for an economy that exceeds 250% debt to GDP. U.S. debt is now 400% debt to GDP. Marc Faber – once a country’s payment on debt exceeds 30% of tax revenue the currency is done for, U.S. will be there in October.
Simple solution is if you want the government to stop the spending, just do not loan the government anymore money to spend. Obama and the House (TEA Party) have huge differences in what they see as the role of the United States government.
Agriculture overall is in good shape right now. Can not be said of many pieces of the economy.
Will the US experience High Inflation, Deflation, or both?
My 5 Step Recovery plan.
1. Cut social spending
2. Can’t fight them all.
3. Secure the borders.
4. Redo tax and regulatory environments.
5. Pass an actual Balanced Budget Amendment to the Constitution.
Lower expectations of the population. Need the “Millionaire Next Door” to get back into the “game”. We need both a Dave Ramsey and Dan Miller right now.
Will Obama send out Social Security checks, even though S.S. is a “dedicated” fund?
House has passed a budget, Harry Reid’s Democratic Senate has not passed a budget for 3 years. They do not want to show their cards on the table. All politics, all the time.
I also want the politicians to spell out how each agency will meet their budget goals. Do not let Washington big wigs do the deciding. Services out in the country will suffer while the DC empires will continue.
Money is just not there, not enough, especially when I hear someone say, just cut the waste fraud and abuse and you can balance the budget. No way, no how will that even cover 1% of what needs to be done.
One way or the other the budget deficit will come down. Market can not stand this for much longer. How much health care spending do we do and how much do we pay in taxes? Answer that question and most everything else goes away in the budget debate.
Tax increases do reduce economic activity, remember we need the guy next door to do something with his money, not send it to the government or try and keep it from the government. How much government do we want? How much farm bill can we afford?
Bush/Hastert spent 19 to 20% of GDP, Pelosis/Obama spent 25% GDP a 25% increase in spending of GDP. We need to cut 25% of the budget just to get back to the Bush spending years. Can we do that?
Tea Party wants to do it “right here-right now” and Obama I think just wants European Socialism, so do we find a middle way?
Just remember the money is just not there. So what are you doing to prepare not just your farming or ranching operation, but your personal finances?