(Jamie)Today we’ll end with another episode of Plain Talk with Kyle and Duane Toews.
(Kyle) Hi, this is Kyle Bauer with Plain Talk with Duane Toews and let’s see, in our subject of correlation without causation, we’ve talked about this… (Duane) …one of my favorites. (Kyle) And go ahead and explain why that’s your favorite. (Duane) It is because it is one of the things I learned in Research Methods while I was at Kansas State University, the only required class I had for my Master’s degree and I learned more in that class than, I’ll just say a lot of other classes put together. (Kyle) In other words two things could both go up but they don’t cause each other? (Duane) Right, they are correlated but it does not mean that one caused the other one to happen. (Kyle) Okay, well here in that same department they have figured out that they can determine what the venture capital deals made in the Silicon Valley are by the number of Ping-Pong tables that they are selling and its exactly correlated, clear back to 2013, per quarter. The more Ping-Pong tables they sell, the more venture capital deals that are done and the first quarter was record low, tiny number of Ping-Pong tables. (Duane) It’s not looking good… (Kyle) It’s not looking good if you want to be a venture capitalist in Silicon Valley. (Duane) At least if you want to invest your money, if you are a venture capitalist you don’t have to invest. (Kyle) Brazil’s economy is a little jacked up right there. (Duane) Yes Brazilian Real had some issues. (Kyle) And in the United States, interest rates are record low. I would guess most operating loans for farmers in this country are in the five to six percent; think I’m in the neighborhood? (Duane) I think you are quite there. (Kyle) Okay, in Brazil they control the money a lot closer than they do in the United States. The government determines how much is going to go to farm loans every year, and then they distribute it in some way out to retail, whether that’s banks or credit unions or whatever. So you’ve got this much to loan now and while they have raised the amount of money that goes out to the farmers this year by 57 billion which is about 25%, but the interest rate is now up over 11%. (Duane) Yes, that’s a way to make money for the government. (Kyle) Yes, people my age remember when interest rates in this country were that high. (Duane) And higher. (Kyle) And higher, exactly right. Anyway, if you are a Brazilian farmer, you can get money but you are going to pay a lot more interest to do it. (Duane) Well, if the government is looking at recouping funds for the budget that’s obviously one way they could do it. They put more money out on loan and put it out at a higher rate, with time you should get it back. (Kyle) Okay, maybe that’s the reason they are doing it, I don’t know but one thing about it is, it maybe to Brazilian farmers and they are increasing the amount of money but they are not going to allow them to have a Brazilian dollar.
(Jamie) Thanks for joining us. I’m your host Jamie Bloom and I hope you enjoyed today’s show. See you next week on Farm Factor – we’re here every Tuesday on AGam in Kansas.
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