A wise investment is in guns. You can realize substantial profit from them ... one way or another.

From The Economist of 25 Aug 2012: Earlier on 20 Apr 2011: A reason for the massive recession: banks and other financial institutions failed to do their jobs; to verify an applicant could afford the loan. This 'deregulation' (approved by 'political propaganda') created one massive recession. We don't need another created by irresponsible finance people.

Review what happened in 1929 to understand why farmland prices, like house prices, do not necessarily mean a good investment.

Despite what bean counter types say, a good investment must be based in the product. Not myths so often promoted on spread sheets created by finance people. Due to finance spin, land prices may be 30% too high; a crash can be expected.

don't worry about me TW I am good :)

Sure, that's because you live on it and off it.

The scumbags that were playing the wall street game, until it fell apart, were looking for a new game. Some of that money has moved into farm land speculation hoping to create another bubble for quick profit. As they drive the value up, the taxes also go up, making harder for small farmers/ranchers.

Some of them have moved into the commodities futures market, bidding up the prices, which increases the cost of food for us and our animals. They're outbidding the traditional players, like General Mills and Purina who were mostly the end users interested in keeping prices down.

Fortunately they can't move the land off shore... except what washes downstream into the ocean.:(

The reason food prices are so high is because of ethanol subsidies period. Once the powers to be get their head out of their alimentary canal and find another crop besides corn (saw grass etc.) for ethanol production. Food prices would moderate.

Obviously it depends on what products you are buying with the $20, but on average a product that cost $20 44 years ago would cost $470.25 today.

Google gives various particulars for 50 years ago.

Due to technology and economies of scale, there are some items that you could get a rough equivalent now for roughly the same dollar vaue; there are probably some canned meals that aren't much more than the 30 cent canned ravioli. Ramen, at least. And clothing can be very cheap these days (though you may also have to buy it more frequently). But unless you've whittled down your needs to just inflation-resistant items (and if so, more power to you), the calculations you've made about lasting 'til age 68 may need occasional adjustment.

A serious and yet unnoticed problem. Eliminate a product that has almost no purpose. And farmland prices take a tumble. We have created a large industry that increases GDP while doing almost nothing productive. The resulting cash flow typically enrich Wall Street types - resulting in a future economic downturn suffered by others.

Generally, products remains at similar prices when inflation is considered. For example, an upscale car in 1969 might be $4500. With inflation that is $30,000 today. A loaf of bread in 1950 was $0.14. Today it should cost $1.35. So why is bread 85% higher?

Because many store breads are "multi-grain" which, of course, would cost more than bleached white flour.
But then, I've long argued that "multi-grain" means it was the floor-sweepings of the night shift. :rolleyes:

The reason food prices are so high in Colorado (and other regions in the middle of the country) is because of the unrelenting drought we've being enduring for years now. The cost of hay is around $300/ton in some areas, and farmers just can't pay that kind of price to raise their cattle, so you see the cost of beef going higher than the cost of gold.

Out here, even the lowly pinto bean is in trouble. McPhee Reservoir (which supplies much of our irrigation water) is at a mere 19% of normal. As it now stands, the water will be gone about half way through the summer. Farmers will be able to grow only one crop of hay instead of the usual two. I don't know what will happen to the pintos. States that are downstream from Colorado like New Mexico with its dependence on the Rio Grande (which has its headwaters here) are threatening legal action if Colorado keeps too much water for itself.

Things are just not good for farmers and ranchers for more reason than one. :(

OK, here's your chance... come to Oregon and fish for your fortune.


KATU.com
5/7/13


There's a $1M fish just waiting to be caught

Attachment 43973

Hagg Lake is just outside of PDX, and will certainly have a LOT of people fishing this weekend.
South Twin is in central Oregon, and is a smaller lake with good bank-side fishing,
and boating is restricted to non-motorized craft.
If I were trying for this fish, I'd head to central Oregon.

Adding to the chorus who sing "investment professionals underperform the market" is word from Charlie Ellis. He is only repeating what Frontline made so glaringly obvious. Actively traded mutual funds are loser.

Ellis notes 60% of actively traded funds (where the stock broker is considered informed) unperform their ROI targets. Within 20 years, 70% underperform. And within 30 years, 80% underperform.

Charlie Ellis also notes the funds primary objective is to enrich the fund manager. The almost 1% fees mean you can surrender anywhere from 30% to 60% of your investment to that manager.

Ellis also echos what informed investors have known for quite some time. Exchange Traded Funds (sometimes called Spyders) have fees as low as 0.04%. If investing in index funds, then the ETFs are a best alternative.

However better returns are averaged by purchasing stocks directly. By ignoring investment advise from those who least understand the best investment - investment professionals. By learning what to invest in by learning the company's products.

From Ellis's book:

Thanks for beating this drum, tw.

I encourage anyone with a 401K or in other mutual funds to take the time to look at the fees for the funds you are in. They really are extreme in the managed funds. I also recommend the index based funds with the low fees.

I did this recently and ended up making a bunch of changes. I had been ignoring the funds for too long.

In today's news...


Cash ! That's $ in their banks ! Cash !

And here we are worrying about piddling $100k student loans
.
.

...and they say the Dow is a 6-month-out predictor of the US economy

LA Times
Andrew Tangel
November 18, 2013, 6:59 a.m.

Dow hits new milestone: 16,000

Good