Farmer Diaries

So when I bought my first iPhone in 2009 for about $500 I thought it was a lot of cash for a phone.  Now the new iPhone X is coming out in a few days and it will cost just about $1,300 -- under the system in which assets are calculated there has been no "inflation" in the cost of an iPhone because the telephone is so much more powerful... Its just that there's a problem with that analysis (i understand how it started)  in fact, your phone doesn't do anything more than the first version (slight exaggeration).  But overall you check your emails, you make your calls...new programs such as WhatsApp and Skype were introduced, but that's just a different way of communicating.  In fact the only real benefit is that images are better, its got a faster processor, which is all good, but to say that the value added is worth an increase in the price of the phone of nearly $800...I find that hard to stomach.  The whole value adjustment (bigger screens for your TV) started in

So a few weeks ago the American government, at the behest of Boeing Aircraft decided that Bombardier was a worthwhile target, filling a complaint that led to the imposition of 300% tariff on Bombardier  C- Series aircraft. Now for a start you've got to understand the tariff thing, the initial complaint was drafted by Boeing with a very clear intent -- to kill a non-competitor.   Not entirely clear what their idea was, it maybe that Boeing is thinking of getting in bed with Embraer and getting rid of the Canadian would be a good deal for them...I just don't know. You see Boeing complained that Bombardier was using unfair advantage in the 90 to 150 seat category of aircraft (this is important).  You see the C-Series aircraft is a 125 seat aircraft (trust me its a big big difference) and therefore is not competing with ANY Boeing aircraft product.  The smallest Boeing aircraft (737NG) is 150 seats (and its a pig). So the complaint will eventually (this is the key here) be thro

I mean, its been almost a year, Hillary Clinton lost the election to Donald Trump, and yet she's in the news all the time.  She gets the kind of free publicity that did so much good for Trump. There's even a senate investigation committee, that started yesterday and is in full swing, if you consider that the Russia Senate investigation committee has been at it for nearly 9 months with virtually nothing accomplished: One is about a sitting Presdient! The other is about a private citizen! Guess which one is being followed with the more zeal... It starts with Fox News asking almost every day: What would Hilary do, in Trump's place -- when the real question is what would Mike Pence do in Trump's place!  Anyway that's what the constitution says, and Clinton is not in any succession plan to the White House. Very strange, the GOP won but is acting like a loser.  Its hard to fantom what's up with that.  The only thing I can come up with is that the GOP is havin

The capital market are by definition optimistic in their outlook, until reality or a crisis or just fear take over, since as in 1927, 1987, 2001 and 2008 (there were others...but these are either recent or well known), the market is looking expensive.  The most well know index for valuation of the market is the CAPE which stands for cyclically adjusted price earning ratio;  It stands today only second (in level) to that of 1927 and 2000) First the market has been uneven for a long time; the majority of the S&P500 has generated pedestrian returns for investors -- aside from Tech the market has done little to impress  Five companies account for fully 30% of the market's rise over the past 3 years.  So is the market in a bubble?  I don't know anymore because ALL asset classes have seen massive increase in value (reduction in yield).  From housing, to bonds to equity -- everything is up.  In fact, since January 1, the market is up nearly 14% -- no bad for a economy that h

So Trump & friends have finally delivered on their tax cut promise, as expected the bulk of tax cuts go to the richest 1%, but then again they do pay the bulk of all taxes -- yes they do!  However, for a gang (looking at you Paul Ryan) who were so anti deficit just a year ago the new tax cuts are unfunded with promised reduction in tax loopholes. Lying liars:  Trump & his advisor say that most of the tax cuts are going to the middle class.  Fact, 50% of all tax cuts will go to the 1%. Loopholes:  Certain (unspecified) tax breaks will be removed.  Since its corporation that benefits from these tax cuts (and their advisors) it is unlikely that the White House will have a smooth sailing on that one.  The other big shift was to remove the deduction for state taxes (after all its not income if you've paid it to the state government!).  That would do two things (a) screw the blue states (e.g. California, NY, Connecticut and New jersey) and (b) it would not harm the base in st