Results 1 to 30 of 116

Thread: When Can We Start Breaking Things?

Hybrid View

Previous Post Previous Post   Next Post Next Post
  1. #1

    Default Re: When Can We Start Breaking Things?

    Hold up... I am not a millionaire or anything but I bought cereal and rice futures a couple of years ago. Why? Because it encourages more people to make more food and as the population is rising food is bound to get more expensive. I didn't know there was going to be bad Russian and American harvests and sure I am now looking at a handy profit thanks. Have I done wrong? Is it wrong to make a profit?

  2. #2
    Senior Member Senior Member gaelic cowboy's Avatar
    Join Date
    Sep 2003
    Location
    mayo
    Posts
    4,833

    Default Re: When Can We Start Breaking Things?

    Quote Originally Posted by SoFarSoGood View Post
    Hold up... I am not a millionaire or anything but I bought cereal and rice futures a couple of years ago. Why? Because it encourages more people to make more food and as the population is rising food is bound to get more expensive. I didn't know there was going to be bad Russian and American harvests and sure I am now looking at a handy profit thanks. Have I done wrong? Is it wrong to make a profit?
    Eh agri futures are not about encouraging the growth of food in the slightest if they did so then they would rapidly become worthless.

    All resource futures be they mineral, agricultural or financial are about protection from any massive price swings or reductions in there availability.



    Do you remember that big to do a few years ago on how bio-diesel was supposedly stealing food from peoples mouths, well that was a load of cobblers there was plenty food the problem was the price of it.

    A large proportion of that food price inflation was driven by huge speculation in all sorts of resources as to it's future price. (it was felt it would be more tomorrow naturally)
    Last edited by gaelic cowboy; 08-29-2012 at 13:36.
    They slew him with poison afaid to meet him with the steel
    a gallant son of eireann was Owen Roe o'Neill.

    Internet is a bad place for info Gaelic Cowboy

  3. #3

    Default Re: When Can We Start Breaking Things?

    Hold on if prices go up then farmers get more and more people think "hey that's profitable" so start growing food. I am not talking about bio fuels.

  4. #4
    Senior Member Senior Member gaelic cowboy's Avatar
    Join Date
    Sep 2003
    Location
    mayo
    Posts
    4,833

    Default Re: When Can We Start Breaking Things?

    Quote Originally Posted by SoFarSoGood View Post
    Hold on if prices go up then farmers get more and more people think "hey that's profitable" so start growing food. I am not talking about bio fuels.
    Not true in the slightest for farming and even less true for the resource sector as a whole.

    Farming is generally a low return high initial investment activity generally people are trying to maximise long term potential. This doesn't sit well with banks so farmers often have problems with obtaining investment and with paying it back in lean years, it literally takes years if not a lifetime to properly maximise the potential of your land and animals.

    Basically no one invests in farming because a loaf of bread went up ten cent, far more likely people will invest in the price of the loaf of bread.
    They slew him with poison afaid to meet him with the steel
    a gallant son of eireann was Owen Roe o'Neill.

    Internet is a bad place for info Gaelic Cowboy

  5. #5

    Default Re: When Can We Start Breaking Things?

    Thank God people like you don't advise 'evil capitalists' like me who actually keep the world going.

  6. #6
    Senior Member Senior Member gaelic cowboy's Avatar
    Join Date
    Sep 2003
    Location
    mayo
    Posts
    4,833

    Default Re: When Can We Start Breaking Things?

    Quote Originally Posted by SoFarSoGood View Post
    Thank God people like you don't advise 'evil capitalists' like me who actually keep the world going.
    People who haven't about clue about the relationship between price and value and how the same is influenced by inputs and outputs will continue to feather Wall Streets nest eggs.

    Futures contracts don't encourage investment in production it it is not there purpose to do so.

    A futures contract is to protect an initial investment position from swings in the price of said resource.
    Last edited by gaelic cowboy; 08-29-2012 at 14:41.
    They slew him with poison afaid to meet him with the steel
    a gallant son of eireann was Owen Roe o'Neill.

    Internet is a bad place for info Gaelic Cowboy

  7. #7
    Enlightened Despot Member Vladimir's Avatar
    Join Date
    Aug 2005
    Location
    In ur nun, causing a bloody schism!
    Posts
    7,906

    Default Re: When Can We Start Breaking Things?

    Quote Originally Posted by gaelic cowboy View Post
    People who haven't about clue about the relationship between price and value and how the same is influenced by inputs and outputs will continue to feather Wall Streets nest eggs.

    Futures contracts don't encourage investment in production it it is not there purpose to do so.

    A futures contract is to protect an initial investment position from swings in the price of said resource.
    Agreed. Still, it's wonderful to get into. The problem comes when people start manipulating goods to generate contrived shortages, etc. No harm in normal futures investing.


    Reinvent the British and you get a global finance center, edible food and better service. Reinvent the French and you may just get more Germans.
    Quote Originally Posted by Evil_Maniac From Mars
    How do you motivate your employees? Waterboarding, of course.
    Ik hou van ferme grieten en dikke pinten
    Down with dried flowers!
    Spoiler Alert, click show to read: 



Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Single Sign On provided by vBSSO