SocraticGadfly: Deflation hits America’s breadbasket

November 22, 2008

Deflation hits America’s breadbasket

Wheat prices are collapsing even faster than banks in America’s heartland.

And, that cheap price at the gas pump, in addition to running the risk of deluding Americas into buying SUVs again, undercuts the ethanol-propped price of corn.

Prices may well drop another 50 percent, reversing part-time farmers, many of them perhaps retirees fleeing the coasts, doing farming. OTOH, land prices will probably drop by at least that much, enticing semi-retirees to cybercommute from the heartland.

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