063 – De-leveraging does it happen to Agriculture?

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Everywhere you look asset values are stagnant or declining except with food deleveraging agricultureand energy.  When does agriculture de-leverage.

Home prices are down.  Commercial real estate is down.  Governments around the world are in money trouble.  Banks have needed massive bail outs.  Even facebook  cannot hold its perceived value.  Leverage was used by many financiers over the last 30 years in very creative ways to generate lots of economic activity around the world.  Just think of all the leveraged buy outs and hedge fund deals that were done from 1982 to 2008.

One could see all the real estate people flipping houses to turn a profit.  Now that has all come to an end, and the deflation part of the “endgame” is taking over.

Agriculture has been here before.  Anybody remember the high flying Seventies followed by the crash in the eighties?  So does it happen again to agriculture and when does it happen if it does?

I discuss what I see as a possible outcome to the current good times in agriculture.

I also will discuss an entirely different set of events that could lead to massive inflation.

I do believe the U.S. will see deflation first followed by hyper-inflation.  We could be in the beginning to middle stage of the deflation cycle now.

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