I can attest that this is true. Hubby does marketing for Monsanto — the farmers can’t buy if there are no loans. We don’t eat, if they can’t buy and plant. Even if they plant and can’t buy fertilizer and pest control (which is an astronomical cost), the yields will be far less and there will be less to go around.
All of that is true, but its not the banks. The banks know they will be punished further if they don’t cought it up and buy more bonds. They know this government will do what it can to put them “fat cat bankers” out of business, they minimize risk, in their view, by buying government debt.
The government knows that they need to sell more bonds in order to spend more debt. The fed loans it to the banks at .25% and they buy bonds at 3%, giving the government mo’ money. Government is wasting it and stealing it.
The result is the same, of course. No loans.
Exactly. Fertilizer has been at all time highs for the last several yrs along with seed and chems not far behind. This yr I’m planning to use poultry house cleanings instead of fertilizer. While less precise then chem fertilizer its worlds cheaper...and better for the soil in the long run. I’m also not going to buy GM or hybrid seed still under patent. While yields won’t be as good at least I’ll keep more of my $$$. his way I *might* be able to pay my taxes.