The Average U.S. Farm Is $1,300,000 In Debt, And Now The Worst Farming Crisis In Modern History Is Upon Us

We haven’t seen anything like this since the Great Depression of the 1930s.  Leading up to this year, farm incomes had been trending lower for most of the past decade, and meanwhile farm debt levels have been absolutely exploding.  So U.S. farmers were desperate for a really good year, but instead 2019 has been a total disaster.  As I have been carefully documenting, due to endless rain and catastrophic flooding millions of acres of prime farmland didn’t get planted at all this year, and the yields on tens of millions of other acres are expected to be way, way below normal.  As a result, we are facing the worst farming crisis in modern American history, and this comes at a time when U.S. farms are drowning in more debt than ever before.  In fact, the latest numbers that we have show that the average U.S. farm is 1.3 million dollars in debt(Read More...)

China Just Went Nuclear In The Trade War, And There Is No Turning Back Now

When will Americans start to wake up and realize what is happening?  At the end of last week, President Trump announced that the U.S. would be imposing a 10 percent tariff on 300 billion dollars worth of Chinese imports, and that marked a dramatic escalation in our trade war with China.  This move by Trump came as a total shock to Chinese officials, and global financial markets were thrown into a state of turmoil.  Since that announcement, we have been waiting for the other shoe to drop, because we knew that the Chinese would retaliate.  But honestly, very few of the experts expected something like this.  On Monday, China announced that it is going to completely stop buying U.S. agricultural products(Read More...)

New Survey: 69% Of U.S. CFOs Believe That A Recession Will Start “By The End Of 2020”

Throughout 2017 and most of 2018, U.S. corporate executives were generally very optimistic about the future of the economy, but now that optimism has been replaced by a deep sense of doom and gloom.  And of course there are very good reasons for all of the doom and gloom.  The trade war with China looks like it is going to last for an extended period of time, recent global manufacturing numbers have been absolutely dismal, and it is being projected that corporate earnings will be down significantly in the second quarter.  The economic environment is tough and it is rapidly getting tougher, and a brand new survey that was just released has found that 69 percent of U.S. CFOs believe that a new recession will start “by the end of 2020″… (Read More...)

U.S. Farms Are Facing Their Worst Crisis In A Generation – And Now Here Comes Another Monster Storm

The combination of the wettest planting season in U.S. history, a catastrophic trade war with China and economic conditions that are brutal for small farms has produced a “perfect storm” for U.S. farmers.  Farm bankruptcies have already risen to the highest level in 7 years, but many expect that they will soon surge to all-time record highs.  Due to the incredibly wet weather, millions upon millions of acres of prime U.S. farmland will not be planted with crops at all this year.  And millions of acres that do get planted will yield a lot less than usual because of the wretched conditions.  Meanwhile, the U.S. will export far less corn and soybeans than usual this year due to our trade conflicts with China and Mexico.  With much less international demand, U.S. farmers are going to have an increasingly difficult time trying to make a profit on anything they are able to grow.  In the end, thousands of farmers will not be able to recover from this crisis and will be forced out of the industry for good. (Read More...)

Due To Cataclysmic Flooding, Millions Upon Millions Of Acres Of U.S. Farmland Will Not Be Planted With Crops This Year

It looks like 2019 could be the worst year for U.S. agriculture in modern American history by a very wide margin.  As you will see below, millions upon millions of acres of U.S. farmland will go unused this year due to cataclysmic flooding.  And many of the farmers that did manage to plant crops are reporting extremely disappointing results.  The 12 month period that concluded at the end of April was the wettest 12 month period in U.S. history, and more storms just kept on coming throughout the month of May.  And now forecasters are warning of another series of storms this week, and following that it looks like a tropical storm will pummel the region.  As Bloomberg has pointed out, we have truly never seen a year like this ever before… (Read More...)

There Is An Increasing Amount Of Buzz That China Could Invoke The Rare Earth “Nuclear Option” In The Trade War

If China wants to cause a massive amount of pain for the U.S. economy in this trade war, they certainly have the firepower to do so.  Today, China accounts for more than 80 percent of the world’s rare earth element production, and approximately 80 percent of the rare earth elements that are used by U.S. companies are imported from China.  The U.S. does have one facility that mines rare earth elements in California, but everything that is mined there has to be shipped to China for processing.  So at this point we do not have the ability to supply our own rare earth element needs, and that gives the Chinese a tremendous amount of leverage. (Read More...)

Trade Talks Are Dead, And So U.S. Consumers Should Brace For A Long, Bitter, Painful Trade War With China

There is not going to be a trade deal between the United States and China any time soon, and that is going to mean a tremendous amount of pain for the U.S. economy.  For months, hope that the U.S. and China would soon reach a trade deal helped to elevate global financial markets, but now that hope has disappeared.  In order for a trade deal to happen, the two sides have to talk, and at this point no negotiations are scheduled.  And unless one side or the other decides that they are willing to move dramatically from their current positions, there really isn’t any reason to talk.  In fact, the Chinese government is openly saying that it is in “no rush” to negotiate with the United States… (Read More...)

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