The current Fed action is inflating commodity pricing in publicly traded commodities, the most important is gold. All other commodities are undervalued from corn to flax-seed, but the most underutilized is hemp. California law is about to change our culture (it is an eventuality) as the first state to legalize marijuana.
There will be many more to follow once California acts as the tipping point, and this cash crop will fall in line with other commodities. It is currently trading around $8000 per pound for the highest premium grade on one end, and $1000 on the low end. Essentially this hemp derivative is more expensive than gold.
The current Pot cash crop in the US is hard to judge, you do not have country wide data points because 90% of the market is traded on the black market, much like alcohol in the 1920's. This will soon change as we begin to see measurable data points, but the tax support it will bring to California will have other states running to change laws.
They will have no choice. I can also tell you that US farmers look forward to growing cannabis so it assists topsoil to help grow other crops, and farmers as entrepreneurs will come back amass as opposed to needing continued government subsidy.
Flash forward to a word where we take the cash that changes hands in illegal markets and transacts in public taxable markets, and you start to see the impact this can have. Many believe that Hemp can be one of the world's largest cash crop's, and if they are right, we will see a change in money flowing back thru the tax base versus landing in the hands of your local drug dealers or forces outside the US. It's really time to reverse the silly war on drugs and halt foolish local police from chasing school kids for smoking dope and explore the health benefits many in the medical field already know.
The vote is coming and this cash crop will emerge to save local economies, and as usual California is at the heart of this movement.
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