HEDGEFUND GURU BUYS FARMLAND

dwight-anderson

When a commodity trading guru like Dwight Anderson, founder of the iconic Ospraie Management, has something to say on the market outlook, people tend to listen, especially when he’s consigning the last great commodity bull run to the dustbin of history and buying gold and farmland for the next crisis.

Anderson is the former Tiger Cub, whose Ospraie Management at one time ran the world’s biggest commodity hedge fund, with close to $4 billion at the peak.

deflationBuy the Farm to Avoid a Crisis

While we have previously discussed the plight of the US farming sector, with astounding increases in debt and the erosion of farmland values, Anderson sees more than just value here. 

“I think farming, in terms of the productive side of the industry, is still an incredibly under-appreciated asset and business in that you’ve got land where every single year, on average, you’re going to grow more. You maintain your water table, your soil, the nutrients there, and I get productivity growth every year. That is awesome. Every other one of the productive businesses, you produce less every year.”

3pettis-breakfast-at-trevas-for-website

“It’s hardest to get real pricing power in agriculture, because you actually are growing productivity per year, versus the decline rates in the others. But as an asset to own for currency protection, inflation protection, just a general income, yes, yield, farming is phenomenal.”

DESPERATE LIVES ON LISTERIA LANE

listeria-blue_-bell_CDC estimates an annual average of fifteen hundred (1,591) people in the U.S. develop systemic infection caused by food contaminated with Listeria monocytogenes; there have been no cases attributed to drinking raw milk in the last twelve years.

Blue Bell stopped production and distribution of ice cream to 25 states in April 2015 after the discovery of listeria. Ten reported cases of listeria were linked to Blue Bell frozen treats and three of those sickened later died.

fda-badge

In fact, Blue Bell knew it had a listeria problem two years earlier. The FDA released inspection reports showing that the company had found the bacteria in its Oklahoma plant, on surfaces such as floors and catwalks, on 17 occasions beginning in March 2013. Despite this, the FDA found, Blue Bell hadn’t followed up “to identify sanitation failures and possible food contamination,” taken proper steps to root out the problem, or informed the agency of its findings. FDA inspections of multiple plants, starting in March, found not only listeria but also condensation dripping from machinery into ice cream and ingredient tanks; poor storage and food-handling practices; and failures to clean equipment thoroughly.

foo4-10-01-15

The most serious public health risk due to Listeria monocytogenes, comes from contaminated ready-to eat processed foods, particularly meats.

Make your own ice cream

guide-to-ice-cream-makers

3 egg yolks (pastured eggs from the farmers’ market)

1/2 cup Canadian maple  syrup

1 tablespoon vanilla extract

1 tablespoon arrowroot powder

3 cups of raw cow’s milk heavy cream (the secret ingredient, raw cream, requires a visit to the farm)

1/2 cup walnuts finely chopped

Beat egg yolks and blend remaining ingredients. Pour into ice cream maker per instructions.

RAW DAIRY

moonshine-still

Finding a source of raw dairy products is akin to looking for ‘moonshine’ during prohibition. It’s the ‘speakeasy’ in the city or the ‘still’ in the country.

Whole Life Buying Club, Louisville, KY has established the first legal speakeasy in the country. They have solved the Buyer’s Dilemma driving out to the farm for a gallon of raw milk. WLBC returns 80% of sales to the farmer solving the Farmer’s Dilemma, making an urban income from a rural lifestyle.

JLD_0005

Anala Goat Company got our license in March 2003, We happily paid Ken 25% commission and danced around the Houston Farmers’ Market parking waving $986 in cash to celebrate free and not quite legal enterprise. The ‘not quite’ part, our  grade ‘A’ raw dairy license permitted the sale of raw milk only on the farm, 50 miles out of town.

Kentucky on the south side of the Mason-Dixon line has always resisted all the Yankee laws they didn’t like and Prohibition of Mother Nature’s most important product is second only to Bourbon on the list of unforgivables.

Whole Life Buying Club occupies a storefront in Louisville and like a country club is for members only. The farmers can bring the non GMO, certified organic produce, licensed grade ‘A’ raw dairy, to their store, where the members can pick and choose what they want.  No more CSA good, bad and ugly bags of vegies.

As a native Cincinnatian my dairy hero was Carl Lindner, who dropped out of high school to run his father’s United Dairy Farmers store in Norwood all the way to #167 on Forbes billionaire list.  Teddy Roosevelt outlawed raw dairy in 1912 with the creation of the Food & Drug Administration. Prohibition lasted from 1920 to 1933 real food prohibition has gone on for over a hundred years, impoverishing farmers and leaving the US the most malnourished industrialized nation on earth.

organic pastures
Organic Pastures Every batch of milk is tested by three different entities: the Fresno County Health Department, California Department of Food and Agriculture (CDFA), as well as a third party laboratory for your safety. https://www.organicpastures.com/
Prohibition
Did you hear how Monsanto lost a $289 million judgement against Roundup causing Cancer. The Food & Drug Administration has Prohibited the consumption of Raw Milk since 1912 b/c of the Law of Unintended Consequences.

 

BOB STRYK

The Stryk Jersey Farm 629 Krenek Stryk Rd Schulenburg, TX 78956 is a 100 miles west of Houston. Houston could start a WLBC style buying club inside Loop 610, allowing Bob Stryk to deliver real cream, butter, cottage cheese, aged cheese and of course raw milk. Houston is the highest per capita eating out city in the world, trendy cuisine and restaurants are their thing. Whole Foods was invented by two wahoos from Houston who had to move to Austin for political correctness.

Whole Foods invited us to set up shop out front of their store, until they discovered we couldn’t sell raw dairy products inside, alongside or outside. Now, that Bezos owns Whole Foods, soon organic vegies will be delivered by drone but not raw milk. It’s Karmic payback for Teddy Roosevelt and the FDA. Why? It’s Prohibited!

It’s Catch 22 writ large, Louisville’s WLBC ‘members only’ concept works because it’s the only way to buy raw milk, if they were selling arugula, no big deal. You can buy organic produce at Wal-Mart, cheap.

This is such a fantastic idea, why didn’t I think of it – because I was born and raised on the Yankee side of the Ohio River. As we say in goat speak: Louisville’s WLBC is a real food Bellwether – the leading sheep of a flock, with a bell on its neck.

Well, the government and Big Ag for starters. Joel Salatin, refers to himself as a ‘lunatic farmer’ because so many of the changes he thinks our food system needs are either illegal under the current law or mightily resisted by the deep-pocketed corporations controlling production and distribution.

THE BIG ZIMBABWEOSKI

zim-trillion

Where are the wheelbarrows? Every time in world economic history, when the government begins printing money exponentially the banknotes face value goes from one to a million, to a billion and in the case of the Big Zimbabweoski a trillion. Why have we not yet seen Americans waddling behind their Home Depot wheelbarrow full of dollars into Wal-Mart to buy groceries.

 saupload_weimar-republic-chart-of-inflation-large_early_late  zim-hyper  venezuela  us-fiat-currency

Weimar

Zimbabwe

Venezuela

United States

The coming apocalypse, you know the one where Hillary stands between us and the apocalypse or she is the bridge to the apocalypse. Whether we call it the Apocalypse Soon or the Big Zimbabweoski, there should be people pushing wheelbarrows of worthless greenbacks. Germany’s Weimar Republic did the job in four years 1919-1923, we’ve been cranking out the ‘moolah’ since Nixon took us off the gold standard in August 1971. In the brief four generation history of money JFK realized that the ‘jig’ was up and tried to bypass the Fed with his EO #11.110.

jfk-in-officeJFK started printing his own money issued by the US Treasury, like Abe Lincoln’s ‘greenbacks’ during the Civil War. Five months after JFK was shot the Kennedy dollars were recalled, leaving the printing presses to the Fed. The Fed was limited to a 4/1 ratio of paper to gold. LBJ got the bright idea of spending 100 million a day in Vietnam which was peanuts compared to his $22 trillion (in today’s dollars) Great Society.

nixon-shock-smWhen, Tricky Dick took six more years to end the war the Fed was already maxed out on the $32/oz equals $128 of fiat, wheelbarrow money. The “Nixon Shock” closed the gold window, ended the Bretton Woods Agreement and opened the door to Zimbabwe land.

However, we have to go to the next generation 1982-2004, the Millennials, the 3rd Turning, the Unravelling and Alan Greenspan the “Great Unraveller.”

If You Can’t Do, Exponentiate

alan-greenspan2mona-lisa

Greenspan, the Mona Lisa of Central banks, responded to the flash crash of 1987, the Dot.Com bust of 2001 and the housing bubble by printing an additional 3.5 trillion paperbacks on the Nixon legacy of 1.5 trillion. Leaving the Fed in 2006 with, “Not to worry we can always print more money.” Which brings us to the 4th Turning, the Crisis 2005-2026 and the seven-year reign of Helicopter Ben Bernanke.

Never let a crisis go to waste

ben-kraut

Bernanke took the Lehman Brothers baton and ran with it, putting his 4 trillion of paper onto the 4 trillion that Greenspan left. He got the handle, “Helicopter Ben” because in the 21st century you don’t need wheelbarrows to haul the fiat money door-to-door, you digitize it. However, when the 4 trillion went directly to the bourgeoisie 1% and zilch to the rest of us, Ben suggested dropping the printed material from the sky on the proletariat 99%.

bernake-wheelbarrow

No helicopters and no wheelbarrows came under Ben. It’s up Janet Yellen to burst the Big Zimbabweoski.