Bubblicious

Do you want to know where the next economic bubble will be?:

Via Kevin Drum:

most farmers earned between $100 and $400 an acre on their 2006 crop after expenses, depending on whether they owned or rented their land. That translates into profits of $100,000 to $400,000 on a 1,000-acre farm. The USDA predicts that net farm income will be $87.1 billion this year, up nearly 50 percent over 2006.

Iowa farmland values are up 18 percent in the past 12 months, according to Federal Reserve Board surveys, making millionaires on paper out of any farmers owning 200 acres free and clear.

Gee. I wonder why? Check out these graphs on prices:

Corn:

Livestock:


Oats:

Soybeans:

And finally the biggie, Wheat:


But, then again, there's no inflation. Right? And the biggest irony of all is that corn and wheat are the direct result of the numbskull idea of making more ethanol, which requires more energy input than it produces while still producing greenhouse gases.

Nothing to see here, move along ....