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As is annual tradition, I have posted The Battle Hymn of the Republic on the Jukebox, to play today, tomorrow and Saturday. It was written early in the Civil War and used heavily by abolitionists. This is apropos, as we now are faced with the possibility of having to fight another war in order to preserve the Union and abolish/prevent the spread of slavery. This time around though, WE THE PEOPLE are the already/potentially enslaved, and the slavemaster is none other than the government itself.

Needless to say, verse 3 has always given me the chills. "As He died to make men holy, let us die to make men free . . ." The "men" in this case are your children, grandchildren and great-grandchildren. Our freedom was bought with the blood of generations past, but the "purchasing power" of that blood is finally running out. Who will buy the freedom of the coming generations? If it isn't us, then no one will. At that point, freedom will die, and our children will be slaves. What we do or do not do RIGHT NOW will determine the fate of hundreds of millions, if not billions of human beings the world over for the next century.

Mine eyes have seen the glory of the coming of the Lord:
He is trampling out the vintage where the grapes of wrath are stored;
He hath loosed the fateful lightning of His terrible swift sword:
His truth is marching on.

I have seen Him in the watch-fires of a hundred circling camps,
They have builded Him an altar in the evening dews and damps;
I can read His righteous sentence by the dim and flaring lamps:
His day is marching on.

In the beauty of the lilies Christ was born across the sea,
With a glory in His bosom that transfigures you and me:
As He died to make men holy, let us die to make men free,
While God is marching on.

Our Father, who art in heaven, hallowed be thy Name. Thy kingdom come. THY WILL BE DONE, on earth as it is in heaven. Give us this day our daily bread. And forgive us our trespasses, as we forgive those who trespass against us. And lead us not into temptation, but DELIVER US FROM EVIL.

For Thine is the kingdom and the power and the glory, forever and ever. Amen

I just came across a video of today's White House press briefing. Chip Reid of CBS News grills Gibbs (Obama's press secretary) about the blatant staging and pre-screening of both questions and audience members in tonight's so-called "Town Hall Meeting" with Obama.

Then, who jumps in on the grilling? HELEN THOMAS, who has the world's worst case of Bush Derangement Syndrome. This is absolutely remarkable. I don't want to get my hopes up here, but could it be that the press is FINALLY starting to wake up? Prayers . . .

Click Here to watch on YouTube

Our Father, who art in heaven, hallowed be thy Name. Thy kingdom come. THY WILL BE DONE, on earth as it is in heaven. Give us this day our daily bread. And forgive us our trespasses, as we forgive those who trespass against us. And lead us not into temptation, but DELIVER US FROM EVIL.

For Thine is the kingdom and the power and the glory, forever and ever. Amen

I was going to write a BRILLIANT market-wrap, but I'm doing a QUIZBOWL contest over on the KRVN blog and if I wrote a market wrap, it would totally give away the Quizbowl answer. Be sure to cruise over there so you can enter the contest.

I have decided that our official cult uniform will be an ATLAS SHRUGGED hooded sweatshirt. It was a close contest between that and a Snuggie, but the stylishness, intelligence and practicality of the hooded sweatshirt won out in the end over the sheer cultic creepiness of the Snuggie. Like I said, it was REALLY close.

Here's some more FWM from OKC yesterday:

SELL 880# top-quality steers @ $96.68
BUY 655# top-quality steers (CALVES) @ $96.78 (Hello? Same price per hundred. Dead give-away!)
Return on the gain = $0.96 per pound
Excess profit per head with an $0.80 cost of gain = $36.00

That trade is SO GOOD and objectively correct and logical that Obama has ALREADY expressed "deep concerns" about it.

Our Father, who art in heaven, hallowed be thy Name. Thy kingdom come. THY WILL BE DONE, on earth as it is in heaven. Give us this day our daily bread. And forgive us our trespasses, as we forgive those who trespass against us. And lead us not into temptation, but DELIVER US FROM EVIL.

For Thine is the kingdom and the power and the glory, forever and ever. Amen

Higher, higher today off of fund buying, stop running and eventually technical break-out buying. Aug fats finished limit-up and feeders were up 225-275. We'll see if they can keep it going. (Who, Ann, are "they"? I dunno. Just a generic pronoun.)

Now, a little OKC FWM:

SELL 716# top-quality steers @ $102.84
BUY 360# top-quality steers @ $115.94
Return on the Gain = $0.90 per pound
Excess profit per head with an $0.80 cost of gain = $35.60

OR

SELL 1350# fat steers last week at $82.00
BUY 956# top-quality cutting bulls @ $76.50
Return on the gain = $0.95 per pound
Excess profit per head with an $0.80 cost of gain = $59.10

There's a little something for everyone.

Obama has just declared that the ouster of Honduran wanna-be dictator Zelaya is "illegal" and that Zelaya is still the president of Honduras.

Zelaya was ousted by the military at the behest of the Honduran congress and supreme court, which voted unanimously to kick Zeyala out after he tried to rig an election by tromping the rule of law. In other words, Zelaya tried to have his "ACORN" goons fix a vote and the congress and supreme court called him on it - and followed the letter of the law in doing so. And yes, our Dear Leader has come down in favor of the dictatorial, vote fixing, constitution-shredding, rule-of-law destroying, Chavez-loving, Castro-worshipping Zelaya.

Unreal. You NEED to understand this. You NEED to be informed. This is the second instance of Obama favoring such behavior in less than a month. How much longer will we as a people look the other way and pretend we don't see what is going on right in front of us?

Click Here for the Wall Street Journal reportage

I'm guessing that most of you probably still have functional televisions in your home, and therefore have heard nothing since Thursday except Michael Jackson stuff. Let me fill you in on the true tragedy that happened late last week:

The US House of Representatives voted on the so-called "global warming bill", and it passed, 219-212. This bill, if it gets through the Senate, will be the largest tax increase in the history of human civilization, and as we all know, it is based on the largest scam ever perpetrated, namely the "man-made global climate change" scam. There is absolutely, positively no such thing as man-made global warming, or its hedge derivative, "climate change". But, we all know this, and that isn't even the point. The point is the complete and total collapse of our government on Friday.

This bill was voted on UNREAD. In fact, the bill wasn't even fully drafted, or fully written, at the time that the House vote was cast. Stop and think about that. The bill wasn't even set in writing. How can the House possibly make an informed, serious decision about ANY bill if the bill is not even set in writing? Now, remember that this bill constitutes the largest tax increase ever levied, and has the potential to utterly destroy not only our economy, but also do massive harm to the global economy, and thus potentially throw the entire world into destabilized chaos.

Our representatives voted not on a bill, but on a CONCEPT. Since the bill was not properly entered into the record, and in fact wasn't even completed, the authors and/or the White House can potentially add anything they want to it. This breakdown in procedure is horrifying to say the least. Our government is very, very broken. Congressional procedure is evanescing into the mist, and the system of checks and balances seems to be non-existent.

My focus is on the 202 members of the House who should have been rioting akin to the brave people in Iran. How could this be allowed to happen? How is it that out of a population of 300 million people, there isn't a single person in Washington who sees what is happening and will stand up and SCREAM that the rule of law is being trampled, and our government is descending into farce?

The conclusion I am slowly coming to is that WE THE PEOPLE are not represented in Washington at all - on either side of the aisle. Washington has become nothing more than two or three mafia families warring with one another with Michael Corleone above, running the whole show - but they're ALL mafia. And, as a corollary to that in my mind is the cry of the Founding Fathers:

NO TAXATION WITHOUT REPRESENTATION.

Now, back to your non-stop Michael Jackson coverage . . .

Dear Ann: Well? Who are the winners? Is there to be some sort of awards banquet akin to the Oscars? Is there trouble at the acounting firm of Price Waterhouse in handling the envelopes containing the winners' names? Trouble deciding on an appropriate gown for the ceremony? Difficulty drumming up media interest? Perhaps you are too troubled over Michael Jackson's death to find any humor in the world? Or, maybe Mikey was the awards presenter (he was cash strapped, I have a hard time picturing him as a customer or commodities investor) and you are having difficulty finding a last minute replacement? Not to sway your vote or anything, but I know where you live and work.

Signed, Jim

----------------

Honorable mentions:

"I sure hope this mind meld works, because she definitely could use my wisdom and calm demeanor."

"Excuse me class, we're going to take a short break. I have a Jones for bald heads and this one's just right for rubbin'."

"Now, to get rid of head lice, shave the center portion, light the sides on fire, and stab the little buggers as they run into the shaved clearing."

"I was 16 and had a full head of hair when I started this school."

"I should have bought the DVD."

"Learning by osmosis is one of the benefits of attending a marketing clinic in person."

"Ann anoints another student to profitability."

-----------------------

FIRST RUNNER UP (who, in the event of the winner being unable to fulfill his duties and/or expressing a politically incorrect opinion will take over the crown and sash):

"I think I can pick up this seven-ten split."

-----------------------

WINNER:

"Nope no horns on this one. We will just cut that old paradigm off, give him a shot of confidence, and turn him loose."

Our Father, who art in heaven, hallowed be thy Name. Thy kingdom come. THY WILL BE DONE, on earth as it is in heaven. Give us this day our daily bread. And forgive us our trespasses, as we forgive those who trespass against us. And lead us not into temptation, but DELIVER US FROM EVIL.

For Thine is the kingdom and the power and the glory, forever and ever. Amen

It is going to be TOUGH to pick a winner in the Caption Contest. You people are FUNNY. Thanks for the cheer and the laughs, and keep them coming. The cutoff is 1159pm MDT tomorrow night. One thing is clear - everyone now loves the nice man in the picture. He has the best dead-pan since Jack Benny. We all agree on that. Cheers to him and his unwitting, newfound stardom.

Next up, a client who keeps me in-the-know on mainstream goings-on informed me of a new rule in market commentary. There is a chain of corollaries in terms of cattle market direction. Number one is the Dow. If cattle and the Dow move in the same direction, blame the cattle market on the Dow. If THAT doesn't work, check the hog market. If THAT doesn't work, you can always fall back on "inflation" if the market went up that day, and "deflation" if the market went down.

I'd be lost without you people. Seriously.

Cattle were steady today . . . oh poop! What does steady mean??? Um, um, thinking . . . faking . . . bluffing . . . um . . . I got it! Dow gains were completely and equally offset by the losses in the hog market.

Smart girl. Didn't even need a teleprompter.

Like clockwork . . . Obama is now talking about caps on procedures for the terminally ill and aged. On the surface this sounds plausible (almost). The problem is, we absolutely, positively CAN NOT allow the government - ANY government - to make those decisions. Treatment decisions are the domain of the individual, the individual's family if the individual is incapacitated, and the doctor(s) involved. If we allow the government a say in these decisions, the government will begin denying treatment to anyone over the average longevity age, or denying care to political "enemies" based upon political donation histories.

Further, health care will then QUICKLY devolve into a true caste system whereby those with "connections" will be able to lobby a politician for an override or exception to government "rules". Can you imagine grandpa, aged 86, needing bypass surgery, having the treatment denied by the government because of his age, and then the family frantically trying to get a hold of their Senator to try to "pull some strings" so grandpa doesn't have to needlessly die? That is EXACTLY what we are headed for, folks.

Remember your Marx. Marx said that the only purpose the people serve is to bring about revolution. Once the revolution is accomplished, the people are mere chattel (yes, the same root as the word "cattle") and become a threat to the continuance of the new regime. At that point, the people are expendable in the eyes of the Marxist regime. Welcome to the Marxist-Socialist-Fascist Culture of Death in full effect.

CLICK HERE for the article

Our Father, who art in heaven, hallowed be thy Name. Thy kingdom come. THY WILL BE DONE, on earth as it is in heaven. Give us this day our daily bread. And forgive us our trespasses, as we forgive those who trespass against us. And lead us not into temptation, but DELIVER US FROM EVIL.

For Thine is the kingdom and the power and the glory, forever and ever. Amen

Let's have a CAPTION CONTEST!! Send in your wittiest caption for the picture below. The winner (as selected by me) will receive an awesome ATLAS SHRUGGED hooded sweatshirt. Deadline for entries is 1159pm Mountain time Friday. Good luck!!

This is me fanning my armpits, because I really work up a sweat when schoolin' folks.

That BEEF Magazine issue made me REALLY mad . . .

Our Father, who art in heaven, hallowed be thy Name. Thy kingdom come. THY WILL BE DONE, on earth as it is in heaven. Give us this day our daily bread. And forgive us our trespasses, as we forgive those who trespass against us. And lead us not into temptation, but DELIVER US FROM EVIL.

For Thine is the kingdom and the power and the glory, forever and ever. Amen

I'm back from Springfield, MO and the wonderful group at the Bud Williams Marketing School. Tina Williams and Richard McConnell were there (natch) and Tina, who is quite the photographer, documented the event. As is tradition, I will post the most horrid, unflattering picture just as soon as Tina gets everything uploaded. Those of you who have been to a school know that I tend to be, ahem, SLIGHTLY facially expressive, thus making for some killer blackmail pictures. The best way to combat this is to EMBRACE it.

Feedlot profitability continues the recovery. Certain delivery windows picked up $10+ per head today. I'll refrain from getting all perky, because it is still a bloodbath, and I refuse to be happy about bloodbaths.

Speaking of bloodbaths, here's a not-so-fun with math for you:

Apache, OK, Thursday

SELL 916# top-quality steers at $88.25
BUY 670# top-quality steers @ $102.92
Return on the Gain = $0.48 per pound
With a $0.65 cost of gain (AS IF!!) the loss per head would be $41.82

Splish-splash, indeed.

Our Father, who art in heaven, hallowed be thy Name. Thy kingdom come. THY WILL BE DONE, on earth as it is in heaven. Give us this day our daily bread. And forgive us our trespasses, as we forgive those who trespass against us. And lead us not into temptation, but DELIVER US FROM EVIL.

For Thine is the kingdom and the power and the glory, forever and ever. Amen

I'm off to the airport to fly to Springfiled, Missouri for the big Bud Williams Marketing School tomorrow and Saturday. It will be quite a group - 6 states represented.

It was a fairly quiet day today, but feedlot profitability continues to improve. Picking up $3 per head per day adds up! Just another $80 per head to go until we hit profitability! Woo hoo!

In honor of my KRVN blog post about "WHY", tomorrow's jukebox has been preloaded with Possum singing "Why, Baby, Why". Enjoy!

Our Father, who art in heaven, hallowed be thy Name. Thy kingdom come. THY WILL BE DONE, on earth as it is in heaven. Give us this day our daily bread. And forgive us our trespasses, as we forgive those who trespass against us. And lead us not into temptation, but DELIVER US FROM EVIL.

For Thine is the kingdom and the power and the glory, forever and ever. Amen

A MUST-READ article penned by Rabbi Yonason Goldson at JewishWorldReview.com:

______________________

The Language of Confusion

By Rabbi Yonason Goldson

It never takes more than a day or two into the new school year before I hear the chant of my students' favorite refrain: That makes no sense!

"What you mean," I answer the first student who utters that unutterable phrase, "is that you don't understand."

"That's what I said," the student responds, predictably. "It makes no sense."

"It makes perfect sense," I insist, "as you will see once you understand it."

The student doesn't give up without a fight. "You know what I mean," he says. "What difference does it make how I say it?"

"It makes no sense implies that, if the material we are learning does not conform to your way of thinking, then it must be wrong. I don't understand acknowledges the possibility that the flaw in reasoning may reside in you, rather than in the material."

He stares back at me, trying to digest this new idea. Over the course of the year, through constant repetition, most of my students will learn never to say that makes no sense. At least not in my class.

I've been challenged on this many times. Is it really my job to belabor this point, to demand that my students express ideas concisely, even when the intent is clear? After all, I'm not a speech or language instructor. Why not just teach the material I'm being paid to teach?

WE THINK WHAT WE SPEAK

In his essay "The Principles of Newspeak," the appendix to his classic novel, 1984 (published 60 years ago this month), George Orwell describes how the leaders of his totalitarian future have contrived to assure their hold on power by replacing English with Newspeak, a language containing no vocabulary for concepts contrary to the platform of the state-run Party. By controlling language, the Party controls its people's very thoughts.

Intuition suggests that language is a product of thought: if we think clearly, automatically we will speak clearly. Orwell demonstrates the opposite, that thought is a product of language. Because we formulate our thoughts in words and sentences, incompetent use of language guarantees muddled thinking. If there are no words for rebellion, uprising, or discontent people will find it difficult to formulate and articulate the concept of overthrowing even the most corrupt and oppressive government.

Students of Orwell will shudder when applying this simple axiom to the corruption of modern language. Advertisers and politicians have known for years that the best way to manipulate public perception is by arranging words in unconventional combinations. Car dealers know that potential customers will feel better buying cars that are "pre-owned" rather than "used." A certain former president knew that the American people would not respond to the gravity of his presidential peccadilloes if distracted by pondering what the meaning of "is" is.

But linguistic confusion became institutionalized with the rise of political correctness. By dodging frantically out of the rain of potentially offensive terms, we soak ourselves in a torrent of euphemisms for simple words the thought-police deem pejorative. When illegal aliens become "undocumented workers," we lose all sense of the danger posed by the porous condition of our borders. When terrorists become "insurgents," we more readily accommodate the moral equivalence that blurs the line between aggressors and defenders. When abortion becomes "reproductive freedom," the horror over the indiscriminate murder of innocents vanishes altogether.

Similarly, when marriage is bereft by judicial fiat of the definition that has served for thousands of years, the foundations of the family structure erode like sand castles before the approaching tide. And as it becomes taboo to make any direct reference to race, class, ability or performance without fear of hurting one group's collective feelings or another group's collective self-esteem, the words that form our thoughts and understanding end up so fully shorn of their dictionary definitions that they cease to mean much of anything at all. In short, nothing makes sense.

CONFUSION BY DESIGN

In truth, for advertisers, politicians, special interest groups, and the politically correct, the real purpose of language is no longer to convey meaning - it is to obscure meaning, to appeal to emotions while bypassing the intellect. Their motive is obvious: it is far easier to evoke a strong emotional response than it is to present a logically developed argument. But by allowing meaning to be drained from our language and our words, we have not only denuded them of their clarity, but also of their depth.

Even worse, we are no longer allowing confusion to reign free but legislating it into the public square. Earlier this year, London decided to remove apostrophes from its street signs. King's Heath will now become Kings Heath. What's the reason? Apostrophes are too confusing.

According to Councilor Martin Mullaney, who heads the city's transport scrutiny committee, "Apostrophes denote possessions that are no longer accurate, and are not needed," he said. "More importantly, they confuse people. If I want to go to a restaurant, I don't want to have an A-level (high school diploma) in English to find it."

Linguistic laziness in both syntax and vocabulary has worn smooth the sharpness of our minds. When I say that I love my wife, and I love my car, and I love ice cream, am I not indulging a subtle self-hypnosis that affirms an equation between all three, that suggests that my feelings for my wife is no more profound than my taste for Baskin Robbins and BMW? By impoverishing our words, we impoverish our thoughts as well.

What is love? And what is honor? and loyalty? and commitment? As we strip our language of both its clarity and its nobility, these concepts become caricatures of what they once were, defined by the mass media who, like the Orwellian Party, have as their only concern the selling of their own values and their own agenda. And as much as we the people are willing to buy, they will continue to sell.

"Teachers, be careful with your words," warns the Talmud, "lest the disciples who follow you will drink of evil waters and die." When the waters of wisdom become polluted with confusion and contradiction, it is society's youth who will pay the price through the erosion of moral clarity and moral principles.

Back in the classroom, my student continues to stare at me, contemplating my rebuke for a few more seconds before he responds. "What I meant to say," he finally answers, "is that it makes no sense to me."

I shake my head. "Don't make it sound like what you want it to mean," I tell him. "Just say it the way it is."

-------------------------

Rabbi Yonason Goldson teaches at Block Yeshiva High School in St. Louis, MO, where he also writes and lectures.

Our Father, who art in heaven, hallowed be thy Name. Thy kingdom come. THY WILL BE DONE, on earth as it is in heaven. Give us this day our daily bread. And forgive us our trespasses, as we forgive those who trespass against us. And lead us not into temptation, but DELIVER US FROM EVIL.

For Thine is the kingdom and the power and the glory, forever and ever. Amen

Don't forget the KRVN blog here.

Click on "Markets" and then "Barnhardt Capital Management, Inc."

Two words, people: Binky-Fax.

Hot off the presses - here you go:

Obama to Propose Strict New Regulation of Financial Industry

This is the most radical powergrab since the Great Depression that will essentially give Obama **the ability to take over any financial institution at any time** in the name of "protecting consumers".

It's almost as if these people are working their way through "Atlas Shrugged" chapter by chapter. Don't kid yourselves. Bank viability and consumer protection will be pure functions of the political affiliations of the respective banks' ownership - just like the Chrysler dealerships. I'll give you three guesses as to which way rural ag bankers tend to lean politically. THIS is why you need to pay down your debt as quickly as possible. It has nothing to do with your banker. It has to do with the government.

Ugh. Sorry to be such a downer.

1. There is a full-on Revolution happening in Iran and no one in the US will talk about it. Millions of Iranians who were disenfranchised by an obviously rigged election (how EXACTLY does one count 60 million hand-written ballots in less than 6 hours?) are taking to the streets by the millions demanding freedom. Estimates put the crowds in Tehran alone at 3 million. Our mainstream press is reporting the numbers as "tens of thousands". The Iranian government has completely shut down cellular service and websites, and the only way information and pictures are getting out of Iran is Twitter. Twitter is a social networking service that allows people to broadcast very short messages over the internet, for those of you who don't know. So far, Obama has "voted present". One of the "Axis of Evil" governments is on the verge of overthrow by its downtrodden people, and our fascist government is doing NOTHING to support the tide of freedom.

Knock me over with a feather. Read and heed, folks. Read and heed.

2. Broadcast TV network ABC has announced that it will turn all programming over to the Obama administration on the evening of June 24th. ABC's evening news will originate from inside the White House, and the rest of the evening will be an **unopposed** "infomercial" for Obama's healthcare takeover scheme. This is journalistically unethical to an extent that can hardly be described. We have long known that the mainstream media was a thinly veiled propaganda machine for the Obama camp. As of now, they aren't even bothering with the veil. Anyone seen Leni Reifenstahl lurking around lately? I'm thinking a re-make of "Triumph of the Will" is in our immediate future.

Click here for the story

Our Father, who art in heaven, hallowed be thy Name. Thy kingdom come. THY WILL BE DONE, on earth as it is in heaven. Give us this day our daily bread. And forgive us our trespasses, as we forgive those who trespass against us. And lead us not into temptation, but DELIVER US FROM EVIL.

For Thine is the kingdom and the power and the glory, forever and ever. Amen

Ann,

I hope your're over the case of apoplexy!! I just wanted to thank you for the time you devote to the battle for our industry. It is when you throw a fit that it really drives the points home. These concepts are so painfully simple. It is truly the Americam dream if you think about it - hard work paying off with rewarding profits and being able to grow a business without debt. WOW.

CF

A friend emailed in regarding the "debtors/trespasses" variance in the Lord's Prayer. I have and do use both. I'm no linguist, but here goes. The original Greek word is "ofeilema" which is defined as "that which is owed" and metaphorically as "offense, sin". In the Latin liturgy, the word is "debita".

I would GUESS that the migration from "debts" to "trespasses" had something to do with getting commerce-minded English-speaking folk away from the notion that the brokeness in our relationships with God and with one another are somehow able to be fixed financially. Specifically, there have always been people who feel that they can "buy" their way into heaven. I personally know people who are utterly convinced that they are in no way required or expected to attend worship - as long as they write a check to a homeless shelter or donate to a religious organization. And then there is the entire Kennedy family. But I digress. So, the pure translation is indeed "debts", so long as one does not compartmentalize the word "debt" to the realm of finance and commerce.

Today, I'll post the Lord's Prayer in my personal favorite languange - LATIN.

Pater noster, qui es in caelis:
sanctificetur Nomen Tuum;
adveniat Regnum Tuum;
fiat voluntas Tua,
sicut in caelo, et in terra.
Panem nostrum quotidianum da nobis hodie;
et dimitte nobis DEBITA nostra,
Sicut et nos dimittimus DEBITORIBUS nostris;
et ne nos inducas in tentationem;
sed libera nos a Malo.

Despite fed cattle trade expected to be steady at $82 at best, feedlot profitability contines its marked improvement. Per head margins in some delivery windows have improved by nearly $40 per head in the last two weeks alone. The problem is, we have another $90 to go before a level of profitability is approached. Yikes.

Let's do some FUN WITH MATH to get you through the weekend!

St. Mary's, KS
Tuesday, June 9, AD 2009

SELL 500# top-quality steers @ $116.00
BUY 403# top-quality steers @ $107.25
Return on the Gain = $1.52 per pound
Excess profit per head with a $1.10 cost of gain = $40.74
Excess profit per head with a $1.20 cost of gain = $31.04
Excess profit per head with a $1.30 cost of gain = $21.34

Today's Jukebox is an Alison Krauss tune off of her surprisingly delightful album with Robert Plant (yes - as in Led Zeppelin Robert Plant). As far as I'm concerned, Alison Krauss can do no wrong, and Plant must have been humbled and intimidated to work with such a talent! This song is all Alison with Plant providing very subtle harmonies. It is haunting and sad, but hopeful and beautiful at the same time. Enjoy.

"Sister Rosetta Goes Before Us"

Strange things are happening everyday
I hear the music up above my head
Though the sight of my heart has left me again
I hear music up above

Secrets are written in the sky
Looks like I've lost the love I've never found
Though the sound of hope has left me again
I hear music up above

Standing in my broken heart all night long
Darkness held me like a friend when love wore off
Looking for the Lamb that's hidden in the Cross
The finder's lost

I know I loved you too much
I'll go alone to get through

I hear Rosetta singing in the night
Echoes of light that shine like stars after they're gone
And tonight she's my guide as I go on alone
With the music up above

I'd really like to come in to the office, open up my browser and NOT see some terrifying headline describing our next step towards total tyranny. That day is not today.

1. The chances are that most of you reading this carry a pocketknife or utility knife. It is almost a requirement, along with a pair of pliers, for anyone working in production agriculture. Odds are also high that your pocketknife is one of those models that has a small spring in the hinge so you can open it with one hand, and causes it to lock in place - very handy. Heck, I think I have one of those. There is now an attempt by the government to make carrying one of these knives across state lines a FELONY. That's right - a FELONY. As a savvy reader stated, it is okay for crazyhead in Iran to have nuclear weapons, but we can't carry utility knives. I would further add that it is okay for men dressed in para-military uniforms to stand in front of polling places and wave billy clubs at voters - but we can't carry pocketknives.

Click here for felony pocketknife story

2. Obama is trying to forcibly, clandestinely and illegally fire the Inspector General of the AmeriCorps program. Remember, AmeriCorps is the program that Obama wants to morph into his "Civilian Security Force" and youth indoctrination program.

Cut and paste this URL into your browser. Sorry - I can only link one URL per post.

http://www.washingtonexaminer.com/opinion/blogs/beltway-confidential/Whats-behind-Obamas-sudden-firing-of-the-AmeriCorps-inspector-general-47877797.html

Our Father, who art in heaven, hallowed be thy Name. Thy kingdom come. THY WILL BE DONE, on earth as it is in heaven. Give us this day our daily bread. And forgive us our trespasses, as we forgive those who trespass against us. And lead us not into temptation, but DELIVER US FROM EVIL.

For Thine is the kingdom and the power and the glory, forever and ever. Amen

Ann,

Last week I was at a Cattlemens Conference. I got to meet some bright and talented people from around the country. One disturbing fact loomed though. Most kinda resemble the "Beef" articles you were blowing holes in. Some of the big feedlot operators even admitted to me they wouldn't have jobs unless they had gotten bought out. This totally represents what you said about generationally incompetent cattle marketers.

I had a few things I wanted to share with you. A rep from C*****-**x came and spoke to our group. He said some things that, well, you know. One quote he made was that there is not enough volatility in the market right now to "do anything". Volatility is our friend and key to profitability.(a whole series of charts followed) He told us how feedlots are having to ***refinance their land and assets to get operating loans***. Access to capital will be a limiting factor. Lack of this capital and not knowing how to manage risk will lead to further consolidation in the feeding sector, he said. He predicted that 20 major feeders will feed over 60% of the cattle in the next two years.

*******He questioned us as to whether we are better off being independent operators or if we are better off being a small part of something better? (Better? Is that the new "Bigger"??) (Only one in five of us were independents at this conference)******************

(Ann's note: I didn't realize it had gotten that bad - they're openly preaching and recommending vertical integration! How dare they . . .)

Now I remember you busting on me for not speaking up at the last board meeting, when I shared the comments of some feeding icons being excited to break even. So I spoke up. After a little dialogue ***he pointedly told me I would not make it in this business much longer***. I laughed, I told him in 1997 I only owned two cows. I built a registered herd from scratch and a 300hd feed yard from scratch. I wouldn't be sitting in that room if I wasn't "making it" I was questioned by my fellow classmates for the next several days. I think they all thought I was full of it when I told them how fast I've been growing my operation. And using CASH.

One interesting conversation was with an investment banker/broker. She came up to me and asked if I was a Barnhardt product. I told her I wouldn't be here if I wasn't. I'd be a welder otherwise. She responded, "How can you put up with her abrasiveness?" My response was "Ann loves me enough to bust on me." Thanks for that.

Lots of people buy into the "Beef Magazine" garbage. I for one cancelled my subscription last year. So maybe the C*****-**x guy is right, there will only be a few big cattle feeders. I guess someone will have to emerge as the Donald Trumps of the feeding sector. May as well be me. (Don't copy the hair, though!)

Just a side note. I was in D.C. Last week doing some lobbying. Our industry is being attacked on so many fronts. There were signs and posters all over the metro warning of antibiotic use in meat. I spoke to members of Congress and the Senate, about Cap and Trade, Clean Water Act, and trade. While I was at the Cannon building, I crossed paths with Wayne Pacelle, from HSUS. I've always been aware of HSUS and what they do, but seeing him made this fight personal. I volunteered to go lobby for NCBA or to testify in front on Congress any time. I recently traveled to China, and while the food is good over there, I don't think we want them suppling us with our food. We really need to find a way to make animal agriculture thrive in this country.

I guess some people need to really ask themselves if they love this business. Are they willing to help it? Are they willing to fight for it? The only negative thing I ever say about the cattle biz, is that it is a hell of alot of work. It's all worth it to watch some hard working Joe bite into his steak on a Saturday night. Or a mom cutting a steak up into bite-size peices for her kids. I can provide that product for them at a fair profit. We are in the feeding and nourishing people business, beef/cattle are just our focal point. That is my Motivation and Perspective.

D

Administration: Rein in pay in US private sector

Obama administration: Executive pay needs curbs, better management, across US private sector

Jim Kuhnhenn, Associated Press Writer
On Thursday June 11, 2009, 10:40 am EDT

WASHINGTON (AP) -- The Obama administration says executive compensation must be better managed to prevent the sort of risk-taking that jeopardizes the economy.

Gene Sperling, who advises Treasury Secretary Timothy Geithner, said Thursday the administration does not want to impose caps on executive pay. But he also laid out for the House Financial Services Committee a list of guidelines calling on publicly-held companies to link compensation to long-term performance, not short-term gains.

Sperling said in prepared testimony that the administration believes compensation practices "must be better aligned with long-term value and prudent risk management at ***all firms***, and not just for the financial services industry."

----------------------------

It's all happening. They're talking about ALL publicly-held companies, not just companies that have taken government money. Next up will be PRIVATLEY-held companies. Who is John Galt?

Our Father, who art in heaven, hallowed be thy Name. Thy kingdom come. THY WILL BE DONE, on earth as it is in heaven. Give us this day our daily bread. And forgive us our trespasses, as we forgive those who trespass against us. And lead us not into temptation, but DELIVER US FROM EVIL.

For Thine is the kingdom and the power and the glory, forever and ever. Amen

Hi Ann,

I just read your post from last night and was wondering how many key boards you go through in a week. I thoroughly appreciate your honesty and I think I understand how exhausting your frustration is and since I also find that writing is an effective way to vent I tend to find myself beating the keyboard. If you like I can send you The Warrior’s Prayer. You clearly wear the whole armor of God but there may be some who read your post who would be encouraged by it. My husband and I sincerely pray for encouragement for you.

G

-------------

Father, Thank You for the provision You have made for victory over satan.

Now by faith I put on the girdle of truth. May my life today be motivated by truth. Help my heart love that which is righteous and refuse that which is sinful.

Thank You for the imputed righteousness of Christ.

By faith I put on the shoes of peace. Lord help me today to be a peace maker and not a trouble maker.

By faith I take on the shield of faith. May I trust You and Your Word today, and not add fuel to any of satan’s darts. Thank You that I go into this day without fear.

By faith I put on the helmet of salvation. May I remember today that Jesus is coming again in glory. Help me live in the future tense. Protect my mind from discouragement and despair.

By faith I put on the armor. May this be a day of victory.

Amen.

---------------

I'm worried about the shoes, G. I'm definitely a trouble-maker. Oh dear.

Ann,

My hard drive is smoking after that last post. I could make smores off the exhaust of my CPU!

Ann, your blog keeps me entertained and excited about the cattle business that the good Lord lets me be a part of. I hate to bore you with what I’m doing, but, it is either I write someone that taught me and understands what I do, or go sit in my easy chair and read Beef magazine. I choose to surround myself with positive folks.

Thanks

M

Ann,

I think you must finally have me totally brainwashed since I went to that marketing school you and Bud taught in Hutchinson, KS 5 years ago. I read the article last night by Harlan Hughes and just started laughing when I realized how wrong he was. The scary part is I was thinking the exact same things while I was reading the magazine that you wrote about in your post. Then, as I was reading the June issue of the Stockman Grass Farmer, I started to wonder how long it would be before you had something to say about it. I think you set a new record! Keep up the good work.

Justin

Thanks for the HUGE response to last night's post. It's encouraging to know you guys are out there. I'll post a few responses later tonight.

Here's something I haven't messed with in YEARS, but I thought a visualization might help bring another person or two into the realm of logic and understanding. Below is a chart of the June 2009 Live Cattle contract. I want you to see the carnage that the wrongheaded "futures prices are predictions" mentality causes. This is why feedlots in particular are in such terrible shape. The thing that just mystifies me is how OBVIOUSLY WRONG the forecasting paradigm is, and how people continue to cling to it with near religious zeal, despite the simple, obvious, PAINFUL evidence that is totally illogical and completely destructive. Don't plan on seeing another chart here. I'm not going technical.

Our Father, who art in heaven, hallowed be thy Name. Thy kingdom come. THY WILL BE DONE, on earth as it is in heaven. Give us this day our daily bread. And forgive us our trespasses, as we forgive those who trespass against us. And lead us not into temptation, but DELIVER US FROM EVIL.

For Thine is the kingdom and the power and the glory, forever and ever. Amen

Apoplexy: (AP-uh-plex-ee) noun. A sudden, usually marked loss of bodily function due to rupture or occlusion of a blood vessel. A stroke.

I got this month's issue of BEEF Magazine in this afternoon's mail and am positively APOPLECTIC after reading it. Good gracious I don't know what . . . how can they . . . it's just unreal . . . .

The cover proclaims that this issue is the "State of the Industry Report". Uh-huh. Here's the state of the industry: people who have marketing skill are making money hand-over-fist. Incompetent people are struggling and going broke. There's your magazine. Questions?

Page 8 begins with Wes Ishmael's column. The big, bold caption reads:

"At ranch level, current low interest and inflation rates make this an opportune time for some to take on additional debt in the name of business enhancement."

People, I'm not kidding. Sorry Wes, but if ever there was an objective confirmation of the need for you guys to pay off debt - there you go. Business ENHANCEMENT? What the . . . ? Dude, you're making VERY bad words fly through my head. Seriously. His supporting logic for this? Well, the S&P/Case Schiller Index DIDN'T make a new record low in April for the first time in 16 months. Oh, well, there you go. Forget the ELEVEN TRILLION DOLLARS AND COUNTING. Forget the fascist corporatization of our economy. Details! Mere trivia! The S&P Case-Schiller Index (yeah, what?) didn't make a new record low last month! Break out the champagne and call the bank (which is actually the government, which is actually China)! Oh my goodness, goodness gracious.

That was just page 8, y'all. We have another 23 pages to go.

Page 10. Dr. Harlan Hughes. He looks like a very nice man in his picture. But oh, my, my, my. Big, bold caption from the article:

"I predict the 2009 calf crop will be marketed with large buy/sell margins that will again lead to negative feedlot profits for those finishing 2009 calves."

Where to begin. Um, how about the words, "I predict". PREDICTIONS are what is killing this industry, Dr. Hughes. Please do the industry a favor and keep your PREDICTIONS to yourself. God love you. Next, "buy/sell" margins. You all know that buy-sell margins are MISLEADING and therefore USELESS. Buy-sell margins “work” if the market goes up. Buy-sell margins “don’t work” if the market goes down. The market goes up 50% of the time, the market goes down 50% of the time. None of us can control this, and NONE OF US CAN PREDICT MARKET MOVEMENT. We’re dead in the water before we even get out of the chute. Next paragraph in Dr. Hughes’ column: “The best and most readily available predictor of prices is the futures market . . .” I am simultaneously having a stroke, a heart attack and the worst case of gas ever recorded. Harlan Hughes, listen to me!
NO!!
NO!!
NO!!
WRONG!!
INCORRECT!!
COUNTERFACTUAL!!!
ERRONEOUS!!!
PERVERSE!!!

Now listen to me, I beg you. I know Dr. Hughes has been around for a long time and is highly experienced, but he is dead wrong on this point and I will not let it pass just because he is my elder. The futures markets are NOT, NOT, NOT predicting the future. The only thing “future” about the futures markets is the DELIVERY WINDOW. The PRICE is completely current. The price is the price RIGHT NOW for future DELIVERY. This is NOT predicting the future!! Hold on, I have to have another stroke . . . If you buy cattle for forward delivery on one of the “video” services (let’s say Superior) did you just magically predict the future? NO!!! You executed a transaction and set your price RIGHT NOW for delivery at some point in the future. How is that possibly “predicting” the price, if you set the price right now??? Hold on, having a heart attack. Get the defibrillator . . . .

If the futures price is “predicting the future”, why did we have a session today in Chicago? Didn’t we ”predict the future” yesterday? And why are we going to bother having another session tomorrow? Didn’t we just predict the future today? Why do we have to keep “predicting the future” over and over again? BECAUSE WE AREN’T PREDICTING THE FUTURE AT ALL! The futures market is a dynamic, “spot” market on a commodity for FORWARD DELIVERY. If we called the futures market the “forwards market” instead, would that help break the erroneous perception that we are predicting a future price? I think maybe it would.

For the love of Pete, how many DECADES of betting on the come based off of the futures price, and then ending up with a yard full of $150 per head losers will it take before we learn? How many times do we have to be beaten over the head before we actually THINK ABOUT WHAT WE ARE DOING??? Many of you reading this may be leaning toward Dr. Hughes’ expertise relative to me because he is more than twice my age. God love him. This is EXACTLY my point. After a LIFETIME in this business, when are Dr. Hughes and the other men in his peer group going to wake the heck up?? YOUR PARADIGM DOES NOT WORK. IT NEVER HAS WORKED. YOUR PARADIGM HAS EMPTIED RURAL AMERICA. YOUR PARADIGM IS FEEDING VERTICAL CONSOLIDATION. YOUR PARADIGM IS SENDING THIS INDUSTRY STRAIGHT INTO SOUTH AMERICA, NEVER TO RETURN. Check your pride and egos at the door and use the brain God gave you to THINK and THINK CRITICALLY. Look around! This isn’t hard. This isn’t calculus. This is elementary school arithmetic and logic.

Page 12. Big bold header: “Cattlemen who can hang on through 2009 may well see better markets in the years to come.”

Oh my goodness. Hang on? HANG ON? That’s the goal now? HANG ON? Um, how about we make money – on every animal. How about that? How about we strive for and actually achieve EXCELLENCE? How about that? And WHAT, exactly would constitute “better markets”? We have, without question or debate, the most profit-laden, opportunity-laden cash commodity markets in the world – BAR NONE. How could they possibly get BETTER? And what does it say about US as an industry if we have the best markets in the world, but need them to get “better” in order to survive? Doesn’t that make us . . . PATHETIC? INEPT? INCOMPETENT?

I know what the author of that article THINKS would be a “better” market. He thinks that a HIGHER market would be a better market. Again, let’s put our critical thinking hats on, shall we? 10 years ago we were ALL fantasizing about having $90 fats and $100 feeders. Oh, everything would be fine if the market would just go up! Well, it did. And you know what? IT DIDN’T HELP. In fact, because the last vestiges of marketing skill retire and/or die with the passage of time, overall cattle industry P&L performance is getting MARKEDLY worse. We are now into the third and fourth generations of incompetent cattlemen, and so profitability is getting worse and worse, even though the market is moving higher. THINK.

Last quote, just because I have reached a state of exhaustion. Page 14. Dillon Feuz, who I’m sure is very nice, and who Jesus loves infinitely: “Going forward, (fed cattle returns) will probably be closer to breakeven for the rest of the year. So come fall, that will help; if they haven’t been losing another $100-$200/head, I think they’ll be a little freer with the bid.”

I could literally cry. I’m not kidding. Losing $100-$200 per head is the new norm, and breaking even is considered encouraging and “freer”. Sometimes I feel like I’m stuck in an episode of the Twilight Zone, and that is NOT a good feeling.

AN OPEN LETTER TO PRESIDENT OBAMA

By Lou Pritchett

Dear President Obama:

You are the thirteenth President under whom I have lived and unlike any of the others, you truly scare me.

You scare me because after months of exposure, I know nothing about you.

You scare me because I do not know how you paid for your expensive Ivy League education and your upscale lifestyle and housing with no visible signs of support.

You scare me because you did not spend the formative years of youth growing up in America and culturally you are not an American.

You scare me because you have never run a company or met a payroll.

You scare me because you have never had military experience, thus don't understand it at its core.

You scare me because you lack humility and 'class', always blaming others.

You scare me because for over half your life you have aligned yourself with radical extremists who hate America and you refuse to publicly denounce these radicals who wish to see America fail.

You scare me because you are a cheerleader for the 'blame America' crowd and deliver this message abroad.

You scare me because you want to change America to a European style country where the government sector dominates instead of the private sector.

You scare me because you want to replace our health care system with a government controlled one.

You scare me because you prefer 'wind mills' to responsibly capitalizing on our own vast oil, coal and shale reserves.

You scare me because you want to kill the American capitalist goose that lays the golden egg which provides the highest standard of living in the world.

You scare me because you have begun to use 'extortion' tactics against certain banks and corporations.

You scare me because your own political party shrinks from challenging you on your wild and irresponsible spending proposals.

You scare me because you will not openly listen to or even consider opposing points of view from intelligent people.

You scare me because you falsely believe that you are both omnipotent and omniscient.

You scare me because the media gives you a free pass on everything you do.

You scare me because you demonize and want to silence the Limbaughs, Hannitys, O'Relllys and Becks who offer opposing, conservative points of view.

You scare me because you prefer controlling over governing.

Finally, you scare me because if you serve a second term I will probably not feel safe in writing a similar letter in 8 years.

Lou Pritchett

Note: Lou Pritchett is a former vice president of Procter & Gamble whose career at that company spanned 36 years before his retirement in 1989, and he is the author of the 1995 business book, Stop Paddling & Start Rocking the Boat.

Mr. Pritchett confirmed that he was indeed the author of the much-circulated "open letter." “I did write the 'you scare me' letter. I sent it to the NY Times but they never acknowledged or published it. However, it hit the internet and according to the ‘experts’ has had over 500,000 hits.

Below is a link to Keith Hennessey's website where he explains exactly what the so-called "Kennedy Health Care Bill" entails. Remember, Ted Kennedy is dying of brain cancer, so this bill has been drafted by goodness-knows-who, which is rather scary in and of itself. You need to read and understand this, because it will effect you, one way or another.

For those of you who have any employees, the ramifications of this are going to be crippling. On a personal note, I have been, at the urging of my accountants, paying MYSELF payroll salary using a payroll service for the past couple of years. This has allowed me to show withholding, payment of various payroll taxes, and allowed my to have a 401k. I pulled the plug on all of that last week. By paying MYSELF payroll, I would be FORCED to carry "Obamacare" for myself as an "employee" of my own wholly-owned corporations, or else pay a tax penalty.

I don't want Obamacare. I don't want to participate in this socialist crap. I don't want to subsidize the drinking, smoking, laying on the sofa eating Doritos and chugging Pepsi crowd. I don't want to subsidize some Oprah fan's "crystal healing" sessions with her witchdoctor in Sedona. I don't want to subsidize Paris Hilton's semi-annual bouts of Chlamydia. I don't want to subsidize ABORTIONS.

I want my $150 per month, $2500 deductible policy that covers me if I get greased by a semi driving to the office or get pancreatic cancer. Our fascist government is now going to punish me for not buying a service, THEIR SERVICE, that I DON'T WANT.

Health care is NOT a right. Sorry, but it isn't. Health care is a service which is entirely dependent upon another person providing that service. Doctors have to go to med school. They have to spend LOTS of money and LOTS of time learning their trade. Why do we expect them to give their skill, time and effort away for free? Just because someone "needs it"? Well, I NEED food. Does that mean that I can drive across the street to the grocery store and DEMAND that they GIVE me all the food I want . . . because I NEED it? As food producers yourselves, that example should hit home.

No one in this country is denied emergency healthcare. If you call 911 because you see a homeless person having a seizure on the street, the ambulance will show up, no questions asked. That ambulance will take the homeless man to the nearest hospital - no questions asked. The emergency room physicians will treat that man - no questions asked. There are charitable nets underneath hospitals (particularly Catholic hospitals) which exist solely to cover the costs for the homeless guy. That money comes from PRIVATE giving. Obama is looking to remove the tax benefits associated with charitable contributions. In a sense, we already have universal healthcare in this country, based upon the, yes, I'll just say it, CHRISTIAN CHARITY of the poeple of this country. Christ tells us to GIVE ALMS. And as a nation, we do (although we certainly could give more). This is the most generous nation on earth. Christ did not call for the Roman government to provide for the people. We are to help one another voluntarily, and for the glory of God, not by state edict. That's the only way the system works. Forced "charity" is despotism and leads to unquantifiable suffering - guaranteed.

Please read this and fight it.

Our Father, who art in heaven, hallowed be thy Name. Thy kingdom come. THY WILL BE DONE, on earth as it is in heaven. Give us this day our daily bread. And forgive us our trespasses, as we forgive those who trespass against us. And lead us not into temptation, but DELIVER US FROM EVIL.

For Thine is the kingdom and the power and the glory, forever and ever. Amen

Hello Ann,

Well, you did fear monger a little bit. I would pose you a question. Are you also advancing the possibility of the evil empire fooling with mortgages in the same way? I realize they control most of the industry already, however, I am currently trying to buy a place now before inflation sets in and interest rates rise. Your blog adds the concern that they may "renegotiate" any and all loans! My area is actually poised to appreciate or at least hold its own in value and my lender is local. However, once they sell the loan I have no idea if a state supported entity will own the loan. Fear monger some more and tell me to live in my horse trailer if you think a 30 yr fixed is a bad option now. I appreciate the input. Thanks,

ST

____________________

Great question and great point. The logic definitely flows. Jimmy Feedyard and I actually talked about the emergence of “underground” private-treaty lending (he can already cite examples of people going to private individuals to borrow – and so can I).

I would say that a person should be as frugal as possible and borrow as little as possible right now. This is good advice in general, and why I didn't hesistate to talk about this dynamic here on the blog. Even if we manage to get everything straightened out without inflation, it is still a very good thing to reduce and/or eliminate debt.

If a person could buy real estate and pay cash for it – no problem. Inflation would make that look like the smartest maneuver in the world. I’d say go for it in a heartbeat. But remember, the monthly payment on a $300,000 30-year mortgage at 6% is $1798.65 per month. Kick that interest rate up to 12% and your payment is $3085.83 per month. At 18% you’re looking at $4521.25 per month. If you can handle that, fine. If there is no way in the world you could handle that – be VERY careful.

One further wrinkle is that some on the fascist left in the national government have already floated the idea of eliminating the mortgage interest write-off on earners over $250k. Ideally, they will want to eliminate it completely. So, I would work off the assumption from here forward that the mortgage interest write-off's days are numbered. Push your pencil assuming NO tax benefit, and then make your decision.

One more point to remember: people in agriculture tend to be “asset rich” and “cash poor”, but the evil empire (good name) will only look at the “asset rich” bit. If a person owns $1,000,000 worth of land (probably inherited), which a lot of folks do these days, the government will want to redistribute that “wealth”. They will win popular support by painting agricultural land owners as the "evil millionaires". The point is, if they take over banks, they will go after the asset rich, red state voters FIRST. Hope this helps-
Ann

Our Father, who art in heaven, hallowed be thy Name. Thy kingdom come. THY WILL BE DONE, on earth as it is in heaven. Give us this day our daily bread. And forgive us our trespasses, as we forgive those who trespass against us. And lead us not into temptation, but DELIVER US FROM EVIL.

For Thine is the kingdom and the power and the glory, forever and ever. Amen

I just got off the phone with Jimmy Feedyard and realized that there are some key ideas that need to be posted on the ol' blog. Our little conversation turned quickly to debt and interest rates, and inflation. Jimmy Feedyard has been working feverishly to get his debt repackaged into fixed-rate notes. That is GREAT. I highly, highly recommend that everyone do the same. However, an ominous cloud lurks above us, and I fear that an unprecedented storm may be gathering.

Quick aside. This post is going to get REALLY grim. I am keenly aware of my audience, and keenly aware of my responsibility to temper my words and NOT descend into irresponsible fear-mongering. However, I also see what is going on in the world, and feel more strongly compelled to sound the alarm, and risk a little fear-mongering in the process. If what I fear is going to happen actually happens and I don't say anything now, I will be wracked with guilt for the duration of my ride. I hope these terrible things don't come to pass. I hope that we find a way to right this ship. But, it isn't looking too promising right now, so as responsible people we must fight the urge to bury our heads in the sand. We must instead look this evil in the eye and prepare ourselves for whatever may come.

As you all know, I think that inflation is inevitable, and hyper-inflation is possible. Inflation means higher interest rates. Earlier this week Treasury Secretary Geithner told a meeting of Chinese government officials and students at Peking University that Chinese assets in the U.S. were "very safe" and was met with loud laughter from the group. Chinese assets are NOT safe. The unofficial credit score of the US is VERY low, and rightfully so. We are insolvent. If someone who was A) insolvent and B) terminally stupid came to you and asked for a loan, you would either tell them to go jump in a lake OR give them a loan and charge them a high interest rate to offset your risk of default.

So, why hasn't this happened yet? I don't know, BUT I do know as a student of history that calamatous events are usually preceded by a short period of calm while the population or market synthesizes and processes exactly what is happening. I personally consider this a grace - a period for moral, discerning people to maneuver and prepare for what is about to come. Noah was given time to prepare. Lot's family was given an opportunity to get out of Dodge (aka Sodom). Jerusalem, along with the old Temple, was not destroyed until AD 70 - 37 years after the Resurrection. There are COUNTLESS examples of a "warning lag" throughout extra-biblical history as well, particularly in run-ups to wars and/or revolutions. I suspect that we are in one of those "warning lag" periods right now. If so, we need to get our ducks in a row, because the lag won't persist indefinitely.

What Jimmy Feedyard and I came to in our conversation was the fact that merely locking-in interest rates may not be sufficient. It is a great start - but not perfect. My fear is that inflation or hyper-inflation will kick in. This will destroy the economy. This will give our fascist government more power and leverage to fully nationalize the entire banking industry. We have already made a DARN good start of that. The fascist government has already proved that it will not honor any pre-existing contracts as demonstrated in the Chrysler and GM takeovers, which is to say it will not honor the rule of law. If a guy has his debt locked-in to a fixed-rate 20 year note, that assumes that the holder of that note will HONOR the terms of the note for the full 20 year term. If your local banker is holding that note, this is no problem. Your local banker has HONOR and INTEGRITY. Your local banker is an intrinsically moral person who abides by the rule of law. If your local banker is forcibly corporatized by our fascist government, the terms of your note will NOT be honored. The government will "renegotiate" your interest rate, bumping you up to the much higher rate. These "renegotiations" will continue as long as the inflation continues. You will be told that this is a "necessary sacrifice" that you should be happy to make for the benefit of the "greater good".

Scared yet? I'm not done. When I presented this scenario to Jimmy Feedyard, his reply was, "Well, at that point, I would just tell the government that they now owned my feedyard." There was a pregnant pause as we both appreciated the terrible enormity of what Jimmy had just said. I then broke the silence and replied, "Isn't that exactly what they want?"

So, what to do? Downsize and eliminate debt. DO NOT be afraid of empty pens or ungrazed acres. There actually is a silver lining to this for us. If inflation kicks in, agricultural commodities will lead the charge. If people come to the realization that "promises", in the form of stock certificates, bonds, or even paper currency are worthless because of the lawlessness of our government, what will they want to hold instead? They will want to hold something that they can EAT, or something that they can BUILD something with. Cash metals will also be in high demand. But FOOD will be priority number one. FOOD WILL ALWAYS HAVE VALUE. So, many of us will have fewer head, but what we have will potentially inflate in value. Because we are not being consumed by interest rates, we will be in the driver's seat, and will be able to EXPAND when others are failing. Happily for all of us, but for me in particular, the Marketing Method I teach works in ANY environment. There are always spreads between different classes of cattle, whether the price be $100 per hundred, $500 per hundred or $5000 per hundred. Arbitrage is a constant in any market. Praise God!

So, there it is. Yes, it looks grim, but we are being watched over, and we know that we can prepare for what may come AND we know that if it does happen, we will still be able to function.

I did a quick Bible search online and found 62 instances of the phrase "FEAR NOT" in scripture. The first is Genesis 15:1:

After these things the word of the LORD came unto Abram in a vision, saying, "Fear not, Abram: I am thy shield, and thy exceeding great reward."

The last is Revelation 1:17:

And when I saw Him, I fell at His feet as dead. And He laid His right hand upon me, saying unto me, "Fear not; I AM the First and the Last."

We all need to remember this, especially me.

Click Here for an infomercial on your next new car!

I'm personally holding out for the 2012 Pelosi Sport Urban Xtreme Alternative Super Scooter. I'll let you figure out the acronym for that.

Our Father, who art in heaven, hallowed be thy Name. Thy kingdom come. THY WILL BE DONE, on earth as it is in heaven. Give us this day our daily bread. And forgive us our trespasses, as we forgive those who trespass against us. And lead us not into temptation, but DELIVER US FROM EVIL.

For Thine is the kingdom and the power and the glory, forever and ever. Amen