Used prices going up, up, up - Tractor Futures!

[Williy]

It seems that the gov every year comes up with
a different way to calculate inflation so it don't
look so bad! So we really don't know the truth
about what the real inflation is!

willy

 

[Cahaba Valley Farm]

It seems that the gov every year comes up with
a different way to calculate inflation so it don't
look so bad! So we really don't know the truth
about what the real inflation is!

willy

Just add food and energy in and you'll see the real numbers.

 

[CloverKnollFarms]

If you use the same method they used back in 1980... we are FAR EXCEEDING the inflation of the early 80s, late 70s.

Statistics are easy to manipulate, thusly, so are humans who blindly trust those who provide those statistics. Ie your government officials

 

[Ledgemere Farm]

Seems like used tractor prices are at a level where they’re more expensive than they were brand new. My brother bought a John Deere 5103 with loader for 14k about 15 years ago and now it’s valued at $18-20k with 700 hours and never have spent a day left outside the barn

 

[rScotty]

If you use the same method they used back in 1980... we are FAR EXCEEDING the inflation of the early 80s, late 70s.

Statistics are easy to manipulate, thusly, so are humans who blindly trust those who provide those statistics. Ie your government officials

Another thing that has changed is what expenses are lumped into what we now call "inflation".

Back in the early 80s and late 70s inflation was tied mostly to the prime lending rate. Today it is popular to consider inflation to include the cost of consumer goods.

Financial advisors like to include the interest on home loans in their "inflation" projetions, reasoning that needs to be considered since it is the largest expense for many people.

 

[IndyJay]

Statistics are easy to manipulate, thusly, so are humans who blindly trust those who provide those statistics. Ie your government officials

"There are three kinds of lies... lies, damned lies, and statistics." - Mark Twain

 

[jyoutz]

Yes it is a supply and demand issue to some extent but it is also an inflation issue. The kicker is, while supply may increase and/or demand decrease, the value of the dollar lost to inflation will never be regained. As long as the government has the attitude "We have plenty of paper, ink and the presses still work so we have lots of money" this problem will only get worse.

This started as a response to the 2008 Great Recession. The federal reserve kept interest rates too low for too long. People got addicted to low interest and real estate prices exploded due to 2.5% mortgages. The same happened with vehicles and just about everything else. The entire economy was supercharged due to easy money. And this isn’t just limited to the US.

 

[airbiscuit]

Let's not forget tariffs on steel and many other things.

 

[rScotty]

This started as a response to the 2008 Great Recession. The federal reserve kept interest rates too low for too long. People got addicted to low interest and real estate prices exploded due to 2.5% mortgages. The same happened with vehicles and just about everything else. The entire economy was supercharged due to easy money. And this isn’t just limited to the US.

Yes, I think you have nailed the most recent swing quite accurately.

The Federal Reserve Act (1913) created a Central Bank charged with smoothing out the fluxuations in financial policy. Most of the rest of the world's countries already had one.

The idea behind a Central Federal Reserve Bank is that everytime US business goes off in a tangent in one direction, the Federal Reserve Bank steps in to lean the other way.
A sort of perpetual wet blanket.

That's the job of the Federal Reserve bank, to lean the other way from popular business sentiment so as to slow down the swings.

It also means means that if the Fed is working correctly, it will automatically be "out of step" with the rest of the business community and in fact with the whole country.

Talk about a tough job. The Feds job is to be the country's #1 Party Pooper. When the Fed does they are supposed to do, and does it correctly, they are guaranteed to be unpopular with most of the citizens, all of Wall Street, and both political parties.

And we think we have it rough....
rScotty

 

[Cahaba Valley Farm]

Talk about a tough job. The Feds job is to be the country's #1 Party Pooper. When the Fed does they are supposed to do, and does it correctly, they are guaranteed to be unpopular with most of the citizens, all of Wall Street, and both political parties.

And there in lies the problem. The Fed has succumbed to political pressures just like every other institution in this country has which has rendered the leadership incompetent to be the adults in the room that they are supposed to be.