Cannabis Prices & The Coming Devaluation of the Dollar

[David762]

This issue is slightly irrelevant, though. Just because a small group of bankers are influencing the world monetary systems, are we to avoid looking at the issue itself, being our own situation, in relation to the US dollar and cannabis prices. That is the issue at hand.

It doesn't matter that other countries are going through the same devaluation, in the US, we are the ones who have to deal with the direct affects of the devaluation of the dollar, and the potential for serious hyperinflation.

I'm proposing the idea, that possibly cannabis prices will rise along with other important commodities, and that holding cannabis or medicines are going to be an actual value, in relation to the dollar, if the dollar drops.

As a commodity, and especially as a means of barter, cannabis has a limited shelf-life, not unlike canned/home-canned goods or frozen foods.

There was another thread here on ICMag that explored new packaging -- UV-proof bags of cannabis filled with dry nitrogen. Such an innovative packaging method would extend the shelf-life of cannabis, especially in conjunction with flash freezing and refrigeration. Hash oil packaged in a similar method would also make sense.

There would still be a place for gold or silver currency, but as a commodity cannabis would or should hold its value in relation to the dollar ... subject, or course to the issue of supply and demand.

 

[Milhouse]

Truthfully, you cant even reefer (haha) to cannibis as a commodity. In order to be considered a commodity, the product has to be identical to all other products of its kind....i think.

 

[bobblehead]

It doesn't matter that other countries are going through the same devaluation, in the US, we are the ones who have to deal with the direct affects of the devaluation of the dollar, and the potential for serious hyperinflation.

I would strongly disagree with you. We live in a global economy. We import more goods than we export. The food, electronics, clothes you buy, etc... comes from abroad. What happens when the supply chain is interrupted? We won't be getting much food when people form road blocks in South America and the food doesn't ship.

Before trade was so global, markets used to run counter-cyclical. Meaning that when the US was in a dip, China would be growing, and some of their money would keep us afloat and pull us out of our dip in the form of them purchasing our products. This is a rough example, so please don't take it and twist it.

Now the markets run in the same cycle, so when we're all up, everyone is winning, but when we dip, everyone dips, and there is nobody to pull you back up.

That's what is happening right now. We have hit a wall, and there really is no way out. You can deny it if you like, but we need to be concerned about the other countries out there that are falling faster than us. If you don't think what's happening abroad affects the dollar, then you're wrong. It's called a domino effect.



As far as cannabis prices are concerned... The SEEDS are what will carry the highest price tag. I don't think you can assign a dollar value to the buds, b/c chances are during the instance of hyperinflation, they would be used in barter. 1g of bud for a pint of milk or w/e...

 

[bobblehead]

Truthfully, you cant even reefer (haha) to cannibis as a commodity. In order to be considered a commodity, the product has to be identical to all other products of its kind....i think.

you have off-brand, store brand, and name brand... all different levels of quality in commodities... Cannabis can be a commodity.

A commodity is a good for which there is demand, but which is supplied without qualitative differentiation across a market.[1] A commodity has full or partial fungibility; that is, the market treats it as equivalent or nearly so no matter who produces it. Examples are petroleum and copper.[2] The price of copper is universal, and fluctuates daily based on global supply and demand. Stereo systems, on the other hand, have many aspects of product differentiation, such as the brand, the user interface, the perceived quality etc. And, the more valuable a stereo is perceived to be, the more it will cost.
http://en.wikipedia.org/wiki/Commodity

 

[draztik]

Check out this headline from today on Bloomberg news:

Marijuana IPOs Provide Investors With Gateway to Cannabis Boom

http://www.bloomberg.com/news/2011-...-investors-gateway-into-cannabis-economy.html

 

[bobblehead]

wait for it.... wait for it....

“The market will just continue to expand.”

 

[draztik]

lol

 

[Moots]

I'd like to point out that it is impossible for the Dollar, especially in the US, with the Reserve, to do anything but lose value.

The only way to make the "value" of the dollar actually go up, would be to severely detract from the total amount of money in circulation.

So every single time new money is "created" and put into circulation, the overall value of all money in circulation falls, as there is a larger money supply. And when the US puts new money into circulation, they buy it from the reserve, which comes with immediate assumed debt.

It's a pretty disgusting cycle. When a nation is severely in debt, and it has to borrow money from the people it owes that debt to, and the value of that money is ever decreasing. How do you haul a country out of debt under those conditions.

Central Banking is the worst thing that can ever happen to a Country. Look how many times the US has fought and thrown out central banking due to its corrupt nature, only to somehow have it slither it's way back in, as the rich pour poison and dollars into politicians ears.

I can't tell who is headed downhill quicker, the US or up here in Canada, what sadly has become of two great Nations. Harper is nearly destroying Canada on his own.

 

[Milhouse]

"A commodity is a good for which there is demand, but which is supplied without qualitative differentiation across a market.[1] A commodity has full or partial fungibility; that is, the market treats it as equivalent or nearly so no matter who produces it. Examples are petroleum and copper.[2] The price of copper is universal, and fluctuates daily based on global supply and demand. Stereo systems, on the other hand, have many aspects of product differentiation, such as the brand, the user interface, the perceived quality etc. And, the more valuable a stereo is perceived to be, the more it will cost."
http://en.wikipedia.org/wiki/Commodity

That is why i think you CANT consider marijuana a commodity. That would be like considering apples a commodity, but you cant because there are many different kinds. Also cannabis is not treated equally no matter who produces it. There is a big difference in producers and their methods. Here is a list of all agricultural food commodities traded today

Corn
Corn
Oats
Rough Rice
Soybeans
Rapeseed
Soybean Meal
Soybean Oil
Wheat
Cocoa
Coffee C
Cotton No.2
Sugar No.11
Sugar No.14
Frozen Concentrated Orange Juice - I love this one!! Trading Places is a great movie!!

See how there are no actual fruits and very few veggies, just FCOJ!! Now I am not positive but i think that is the reason!!

 

[bobblehead]

"A commodity is a good for which there is demand, but which is supplied without qualitative differentiation across a market.[1] A commodity has full or partial fungibility; that is, the market treats it as equivalent or nearly so no matter who produces it. Examples are petroleum and copper.[2] The price of copper is universal, and fluctuates daily based on global supply and demand. Stereo systems, on the other hand, have many aspects of product differentiation, such as the brand, the user interface, the perceived quality etc. And, the more valuable a stereo is perceived to be, the more it will cost."
http://en.wikipedia.org/wiki/Commodity

That is why i think you CANT consider marijuana a commodity. That would be like considering apples a commodity, but you cant because there are many different kinds. Also cannabis is not treated equally no matter who produces it. There is a big difference in producers and their methods. Here is a list of all agricultural food commodities traded today

Corn
Corn
Oats
Rough Rice
Soybeans
Rapeseed
Soybean Meal
Soybean Oil
Wheat
Cocoa
Coffee C
Cotton No.2
Sugar No.11
Sugar No.14
Frozen Concentrated Orange Juice - I love this one!! Trading Places is a great movie!!

See how there are no actual fruits, just FCOJ!! Now I am not positive but i think that is the reason!!

There are different types of corn. When you go to the grocery store, there's different types of cocoa powder, etc... I do see your point. Exchange traded commodities have a standard.

 

[Milhouse]

Yes, I guess I should have been more clear, i am meaning an exchange traded commodity!!

 

[Grimr3efer]

I am just waiting on the US to start war with Iran. This will be the demise of the US. You can forget everything when this time comes.

 

[bobblehead]

when it comes to farming you grow what works best in your particular region. I get what you're saying, but I know for a fact that they grow different strains of corn and soy in different regions of the world... Pigs and cows aren't all the same... and they compete with the price set by the market. When Argentina had a strike 2 years ago and didn't ship out any soy beans for 2 weeks, the other soy bean producing countries just sold more.

 

[draztik]

Silver and Gold are on sale today! This is when I would do some buying. Buy the dips. I have noticed a pattern lately, as the price of gold and silver dip silver seems to gain a slight edge each time they bounce back.

 

[AmishFarmer]

All I know is that I grew my first indoor in 1990.It sold for $100 1/4 ounce.Now 21 years later,still $100.

 

[Milhouse]

Hey Bobblehead, I guess if cannabis ever got this big, they could develop standards and measures for it as well

http://www.usda.gov/wps/portal/usda...DITY_STANDARDS&navtype=RT&parentnav=LAWS_REGS

 

[bobblehead]

Hey Bobblehead, I guess if cannabis ever got this big, they could develop standards and measures for it as well

http://www.usda.gov/wps/portal/usda...DITY_STANDARDS&navtype=RT&parentnav=LAWS_REGS

BINGO. but I think we're a long ways away from that... ha ha...

 

[mean mr.mustard]

 

[medicalgreen]

Should We Be Alarmed That The Biggest Bond Fund In The World Has Dumped All Of Their U.S. Treasury Bonds?

http://theeconomiccollapseblog.com/...ld-has-dumped-all-of-their-u-s-treasury-bonds

 

[Chief Rbud]

Cheif Rbud - There are a few "untruths" to your story so please hold off with the name calling.

First, you were close with the Warren Buffet reference with gold but in actuality he started buying silver over 20 years ago and cashed in on his silver invest in 2006 with a sale to Barclays. Noone was calling Warren Buffet a nut 10 years ago! His MASSIVE investment into the BNSF seems suspicious then doesnt it? I mean if he was worried about the US economy and everything, he would definitely not invest in an AMERICAN company whose main business is hauling goods for the AMERICAN economy. If the US economy crashed, which it surely would under this scenario, he would stand to lose BILLIONS!!!

Second, the price of Silver was not "$5-$6" 5 years ago...I think it was like 8 years ago, average price in 2003 - $4.85 ended year at $5.97. If they were buying 5 years ago (2006) they would have been paying roughly $7.31 per ounce. On a separate note, I wish I would have bought Silver then, that was an amazing investment decision.

You brag about being "almost out of debt" Under this "scenario", you would want to accrue as much debt as possible right now because you will be able to pay back your debt with "future, worthless" dollars.

Who are "the wealthy"? That seems like a very broad term to say the least!! Is there like a secret super rich elite investment group that is moving markets because there are VERY FEW individuals that have the financial capabilities to move an entire commodity market! Maybe none!

I am not opposed to everything you are saying although you are taking quite a dramatic approach to it! I do agree that the dollar is going to continue a decline in value but i do not believe it will be as dramatic as you speak of! I also really didnt like your ignorant tones towards everyone that didnt agree with what you had to say.

my dates may be a little off, i have a memory problem, no kidding. but my tone was in direct response to the guy who basically called the OP an idiot, but not in those words. he can shove his degree. My family has been self employed for generations and i am almost out of debt based on my commodities purchases. i didnt mean to imply that you should borrow money to invest, i only meant that if you have been borrowing money lately or in the past and were in debt, you would be in a better position if you started buying silver and other commodities at todays prices, and then ride the inflation of the currency so that the inflated dollars you get when you sell the commodities can pay off your debt. the guy claiming he knows everything about this because he has a bachelors degree in economics was the guy with the rude attitude, my attitude was in direct response to how he treated the OP. and he can take his head out his ass, he is sadly uninformed about whats going on. the poster referring to the amero currency is correct, they have been planning this for decades. this isnt crazy land. however i fear that the situation in the rest of the worlds currencies may precipitate skipping the amero and going directly to a one world currency. The head of the IMF has recently began lobbying for a one world currency. and the top bankers are behind him. makes it easier for them to control us. you guys really need to pay attention to what's going on in the world before attacking people for bringing up things you haven't heard of because you are uninformed or just plain too stupid to understand. the guy with the degree needs to spend a few years UN learning most of what he thinks he knows about money. it only partially works the way you learned in school. thank you, have a nice day.