The Protein Bomb

Question for you: Which distinctly British asset class has offered the most attractive returns over the past decade? Central London property? Not even close, even if it has done rather well. UK farmland is the answer, having more than tripled in value over a decade which will otherwise not be remembered for its outsized returns (see story here). The rise in farmland values is not only a British phenomenon. All over Northern Europe and North America farmland values have responded well to higher commodity prices. Last year alone, farmland prices in the US Midwest appreciated by 22% on average

Nonlinear Thinking: The Robot Farmer

In the ongoing series of posts on technology’s threat to existing labor roles, Global Macro Monitor highlights this video on robot farmers

Bubble Trouble in the U.S. Heartland?

The “smart money” has been buying up farmland hand over fist for the past few years and you can see how they helped drive up land prices in the U.S. heartland. Some think this is the place to be if the shit really hits the fan. Not gold, but productive assets that you can eat. Nevertheless, with ag commodities starting to rollover, farmland prices have probably seen their best days.

Running through Italian default scenarios

The most important debate of our lifetimes is now ongoing. The question: Should the ECB “write the check’ for the euro area national governments? In thinking about the answer to this all-important question, I prefer to shift the focus by changing the verb “should” to “will”.

Answering this slightly different question is much more important than answering the first question for you as an investor, a business person and as a worker. If the ECB writes the check, the economic and market outcomes are vastly different than if they do not. Your personal outlook as an investor, business person or worker will change dramatically based upon this one policy choice. The right question to ask then is: Will the ECB “write the check’ for the euro area national governments

Jim Grant: The ECB will print money

Jim Grant spoke to Bloomberg News earlier today about the sovereign debt crisis. He says the fundamental question is “What will the European Central Bank do next?” His answer: they will “print money”. He believes that all of the central banks are doing it now, the ECB being the last to take this step. Grant fears that the ECB is “heading for trouble” by taking on so many “dicey” assets and speculates about the institution’s solvency and leverage.

These are exactly the issues holding the ECB back. But the imperative to prevent a collapse in Italy is forcing its hand. Video below