The sheer audacity of Western central planners from Mario “Don’t Dare Short the Euro” Draghi to now President Barack “We Can Overcome Mother Nature” Obama has become so breathtaking it borders on the comical (“They’ve gone PLAID!”). The worst drought in 60 years requires a real shifting of capital away from highly subsidized corn and soybean farmers back towards the productive sectors of society and allowing the substitution into other grains.
Why shouldn’t Oat farmers make money, after all?
Corn, Wheat and Soybean futures are all hanging around near all-time highs. GLD). But, somehow, because farmers are losing crops due to the drought and those that haven’t are securing record prices, and presumably solid profits as a result, American taxpayers need, in Obama-world, to transfer even more of their wealth to these people because of the vagaries of Mother Nature.
Like they haven’t gotten enough rent from us over the past 80 years since Hoover started the program.
Obama exhorting Congress to pass more welfare for farmers smacks of the worst kind of pre-election vote buying. When in reality what he should be saying to Congress is why haven’t you gone after John Corzine and the rest of MFGlobal and JPMorgan (NYSE:JPM) for bankrupting so many of them when $1.2 billion of their funds were stolen last fall. As bad as this drought is, it will be just temporary. Breaking the chain of custody and the sanctity of the clearinghouse mechanism as was done under Obama’s watch by and for one of his biggest donors is forever.
Never let a good crisis go to waste and never underestimate the chutzpah of an American politician.Previous Post » Japan’s Growth Slows, Cue Keynesian Stimulus