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nc ks | I was going to start a new thread and then read yours and think that we are interested in the same answers. I am thankful to the posters on here (and the outside blog type info they post also) that are warning us that tough times may be ahead, but am frustrated that they have so much conviction about inflation and/or currency devaluation and higher interest rates, but I have gleaned little practical advice on what 'get your house in order' means. I would very interested in some hands on type suggestions.
I also have tax considerations right now and want to handle that in a way that doesn't put me in a bad position for the above mentioned problems.
My thinking is: If the dollar is going to be worth less (have less buying power), I need to not have an abundance of dollars on hand. What to do with them then?
My first place for stashing them would be in buying asd many inputs for next year as possible. I pretty much trust the seed companies with pre-pay. This might be more of a tax consideration than anything since their prices and discounts are pretty much set for the coming year. Fertilizer seems like a good place also. Problem is I have only so much storage and don't trust fully paying for a great amount stored else where. 20% down will lock in a lot of fert and should be a hedge againt inflation if they honor their contracts. (fertilizer involves big companies that I know little about and they seem to change hands frequently so I am cautious of them).
Buying NEEDED machinery and buildings with both cash and loans with locked in
interest rates. What is the downside to loans with locked in rates as long as they are a small enough part of your operation that you are not having any trouble servicing the debt? If inflation happens, won't it get even easier to service that debt?If banks go under, can they call your loan in even if you have 3 years left on it and you are current?
I am not interested in investing in anybodies stock market or hedge fund or precious metals so that limits me a little.
Edited by kb ag 12/3/2009 09:50
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Devaluations, Denninger
