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Coffee and a donut please! Thanks Hon! (political )

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Sir Loin

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I wrote this on the other board so I just C & Ped it here for your comments.
SL
Coffee and a donut please! Thanks Hon!

Jim,

As has been shown historically, it is the 3-Fs ( fuel, feed and fertilizer ) cost that has caused the decline in cattle numbers and a rise in cattle market price and government policies control all three.

Prior to the forced use of Ethanol the government only control the flow of oil (fuel ) and by controlling the price of oil (fuel ) they also controlled the cost of fertilizer as it comes from oil.

The forced use of Ethanol by the government, the government has now taken control of cattle feed.
In addition taxes, another cost factor controlled by the government, continue to rise.

So you see the government now has full control of all 3-Fs ( fuel, feed and fertilizer ) costs and taxes.

FACT: The government now controls the cost of the three plus major cost factors in the cattle industry.
And he who controls cost also controls both profit (P) and sale price. (SP)
( SP aka market price.)
Remember: C + P = SP
FACT: You are not running your cattle operation, THE GOVERNMENT IS as they have full control of your major costs. And the same can be said for many other industries. Hence the continued pizz poor economy and continued high unemployment rate which will, if left to fester, cause a decline in demand in beef while at the same time reduce cattle inventor (supply ) by forcing supplier (cattleman ) to sell off more cattle to meet costs ( the 3-Fs ) or to go out of business All together.

Re:
I do not however believe the outcome of the 2012 presidential election is going to have an effect on current cattle prices one way or the other.
I'm at a lost for words on that one.
Think about it.
SL
PS I'm trying to stay away from political discussions as it may/will probably cause my to go on another forced hiatus ( permanently ).
 

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