New Tractor Sales Are Declining

[Cahaba Valley Farm]

Please explain?

Deficit spending by local governments is done via bond issues, yes? Which the bonds are bought by..investors, using money that already exists.

Deficit spending by the federal goverment is done via...treasury/bond issues, which similarly are bought by investors, but also by the federal reserve via quantitative easing. I agree quantitative easing is basically printing money from thin air..but QE is the issue, not deficit spending there, as the treasuries that fund the spending (not via QE) are bought using existing US dollars, no?

I fail to see how deficit spending increases the money supply more than fractional reserve lending, where each loan made can be 100% newly magic'ed money due to zero serves, or 90% new money (assuming 10% fractional reserve).

IMO, this is an important topic as most people (and perhaps I'm one of them) don't understand our monetary system, how money is created, or what is actually causing inflation (increase in money supply, not increase in prices).

I'm backing you up on this post. I think it was well thought out and well communicated. And I also have been wondering the same thing for a long time. For Torvy to say he can't be bothered to explain this is a cop out in my opinion.

 

[airbiscuit]

I just stopped at the local Kioti dealer. Their sales have been brisk. More stock is coming in, and most of it is pre-sold. And today is really the only nice weather we've had so far this spring. Nice weather makes people twitchy to buy tractors

 

[Cahaba Valley Farm]

I just stopped at the local Kioti dealer. Their sales have been brisk. More stock is coming in, and most of it is pre-sold. And today is really the only nice weather we've had so far this spring. Nice weather makes people twitchy to buy tractors

Thanks for the update AB. It seems you are in one of the few markets that still has very strong demand.

 

[tacticalturnip]

Our Kioti dealer just go restocked to the hilt; one evening I went by and there was a truck just sitting there loaded up with crate tractors. Well they're assembled now, and they've got a good selection. I hope they move them, I like these guys and I want them around lol.

 

[Cahaba Valley Farm]

Our Kioti dealer just go restocked to the hilt; one evening I went by and there was a truck just sitting there loaded up with crate tractors. Well they're assembled now, and they've got a good selection. I hope they move them, I like these guys and I want them around lol.

Where are you located tactical?

 

[tacticalturnip]

Where are you located tactical?

I'm up here in Maine; my dealer has two locations, and they've done well to cement Kioti into the local market. I really hope to see it continue, the competition they provide is good for slowing down the rise in prices at least a little. There may not be much room for negotiating these days, but it helps when you can.

 

[rScotty]

I'm backing you up on this post. I think it was well thought out and well communicated. And I also have been wondering the same thing for a long time. For Torvy to say he can't be bothered to explain this is a cop out in my opinion.

Here is how I think of additional dollars created by deficit spending. I don't know if it is formally correct, but would be interested to see is others feel that same way. Here goes....

A paper dollar has no REAL value like it would if it were gold. What it has is the concept of value.
Similarly, deficit spending creates the concept of additional money in circulation even though there isn't any real additional money.

An example, is suppose you took out a loan (that is deficit spending) and although you only made one dollar last year your loan enabled you to spend two dollars of value. That additional dollar has no real existance - and certainly no real value - but it exists because it was used in a transaction. . That meant that an the "concept " of an additional dollar was added to the economy.

rScotty

 

[jyoutz]

It’s not going to compare to a taxpayer funded government pension, but yeah 5% is still pretty good.

Taxpayer funded government pensions are half funded by employee contributions. And no, the COLA on them isn’t often 5% or more per year. It’s usually more like 2%. But I’m not retired, I just get the mailings from the retirement board.

 

[jyoutz]

So not all economists agree, right?

Economics is called “the dismal science “ and there are a diverse range of opinions among economists and economics professors.

 

[airbiscuit]