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Aftermath of increased debt ceiling on stock/bond markets
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JonSCKs
Posted 4/30/2023 05:56 (#10209167 - in reply to #10208882)
Subject: 3G’s may get tested.. as MTBC continues.


dogg4585 - 4/29/2023 20:34

Maybe. Similar to the BTFP. Increase their balance sheet without technically doing QE. Not sure how this option be spun as not QE and Fed has been adamant about wanting to shrink its Balance sheet. Turns into Luke Gromen's sovereign debt crisis. Meaning likely Fed cries uncle to inflate the debt down to a manageable level and leave the bondholders holding the bag a la 1940s. But lots of countries are in the same boat with way less desirable currencies as usd so who knows.

IMO it's a good time to own the 3 G's. Gold, Ground, and Guns.


First off.. the Fed balance sheet turned higher in March.. after..

”monetary tightening by bank collapse.” Was implemented.. MTBC for short.

https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm

there’s that.. which promotes the 3G principle.. but as we are seeing.. Brazil (doesn’t need to) print land.. they still have plenty as record corn and soybean crops move into world markets..

https://www.indexmundi.com/agriculture/?country=br&commodity=soybean-oilseed&graph=production 

https://www.indexmundi.com/agriculture/?country=br&commodity=corn&graph=production

Golly looks like they’re running out of storage.. “always something.”

https://www.soybeansandcorn.com/articles/9581/

 The lack of grain storage space is a chronic problem in Brazil especially in the state of Mato Grosso, which is Brazil's largest grain producing state. According to Conab, the total grain storage space in Mato Grosso in 2022/23 is 44.7 million tons, which is up 8.8% compared to the 2021/22 season.

The production of soybeans and corn in the state in 2022/23 is estimated at 90.7 million tons, which is up 7.1%. When the current production is combined with the old crop carryover, there is a deficit of 64 million tons of storage space according to the Mato Grosso Institute of Agricultural Economics (Imea). The two crops in the state are harvested at different times, which helps spread out the need to store grain. The soybeans are harvested primarily in January and February, while the corn is harvested in June and July.

To complicate the problem even more, farmers in the state have been slow sellers of their recently harvested soybean crop, which is running 8% behind last year at this time. Forward contracting of their anticipated safrinha corn is running 20% behind last year. A recent slump in grain prices have made farmers much more cautious about selling their grain.”

maybe they’ll try more cotton acres next?

https://www.statista.com/statistics/740738/cotton-production-weight-brazil/

So is there any safe haven for helicopter $$$? 

Flip side.. neighbor thinks as much as 40% of HRW Wheat will be abandoned in the South Central District of Kansas.

A Lot of cattle being turned back out on it now.. 

“let em eat cake.” 

hmmm.  First Republic is going.. going..

https://www.cbsnews.com/news/first-republic-bank-stock-price-2023-04-28/ 



Edited by JonSCKs 4/30/2023 06:16
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