FFSC – Day 2 Session 1
Our first session today was presented by Economics Professor Kevin Waspi of the University of Illinois. He presented a discussion on the Economic and Financial Outlook and some highlights are:
- Our economic policy is based on the the policyI used in the late 1990’s to help get Japan out of their lost decade. Everybody knows how that worked out since Japan is now in the lost decades.
- The Baby Boomer bulge is causing a weakness in our demographic base. Instead of almost 16 workers for every social security recipient. It is now less than 2 workers.
- Europe’s demographics are even worse.
- Most European countries are running more than 100% of gross government debt to annual GDP.
- Some European countries unemployment for people 25 years or younger is approaching 50%.
- Now may not be the time to buy 30 year treasury bond at a 2.5% rate
- Do not believe in soft landings (especially China right now)
- Investigate other production options
- Expect higher taxes
- There is now a greater fear of your return of your money instead of a return on your money. That is why German Government Tbills are generating negative yields.
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
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