Cardinal Points that is.
Sorry for the hiatus. Or has Cocreator’s New Blog become a weekly? No, I didn’t give it up for lent. But I have been busy. The income taxes are paid. At least the personal ones that I’m (or more truthfully my STRAW MAN is) responsible for. The first half rent is paid. I’ve locked in a current 40,000 US Dollar loss. Though it doesn’t look that way on my income taxes. For the third year in a row. It will more than make up for any profits I’ve been pushing forward. Of course I won’t have the money to pay the income taxes if I don’t keep pushing it forward.
I can tell that the banks are not going to help out. Though they are glad to see those pre paid costs on the balance sheet they won’t be easy to get along with if the crop growing sector can’t return a profit for a couple more years. The loan officer couldn’t believe the bleeding balance sheet this year. He kept looking around to find what he’d done wrong on the figures. All I could do was point out that I saw this coming three years ago. I got the feeling after I had left that my visit had really shaken the poor farmer/loan officer’s confidence along with some of his convictions. I was one of his worry free accounts.
It makes no difference to me. When they shut me off I’ll quit farming. I’m pretty sure this is where I came into this movie. When I started every farmer was going broke. Many farmers had already been shut off and sold out. It’s interesting to see what was happening before I had come around that corner 32 years ago. All we’ll need is rising interest rates. If we are able to get the zero percent interest rates the zombie banks are getting we can continue in a similar zombie fashion. They could artificially prop up the value of land and rents in the same way houses and stocks are currently being artificially propped up.
What have we given up? We’re all suppose to give up something. They call this the lenten season. (Lent In Season) So the money’s been lent into creation. Yes, I’m a cocreator there also. As are all who borrow money into creation. Borrowing money is how it’s created in a reserve banking system. A system where the banks only have to keep a small reserve of their capital base on hand and are allowed to loan out (aka create) many times as much as they have on deposit. That’s why runs on banks can’t be tolerated, the money (beyond the tiny reserve) simply isn’t there. It’s also why the debt can’t be written down or paid off without causing severe deflation of the money supply. It’s a house of cards from the get go. Built on a sand foundation. (Silica?) (Fracking?)
And I think I hear the inevitable approaching winds of change.