Can you tell me if Central Iowa farmland sales have fallen recently and is that price generally trending up or down?

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Can you tell me if Central Iowa farmland sales have fallen recently and is that price generally trending up or down?
Answer: 

Thank you for your question. Yes, we have recently developed a new Iowa Land Value web-portal which allows you to visualize the trends in Iowa land values at the county, district and state level. It is available at www.card.iastate.edu/farmland, and check out the trends and interactive county maps tabs.

Why did China’s banking system grow so much since 2000?

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Why did China’s banking system grow so much since 2000?
Answer: 

First of all, I want to make it clear that, when a central bank increases its FX reserves, it supplies local currencies and increases liquidity in the money market. But this is certainly not the reason that China’s banking system grew so much. Secondly, I believe that the main reason is during the marketization process of the real economy, the Chinese government kept the monopoly power of the banking system. In fact, the interest rates of deposit and loan were not determined by the market. The banking system had very high spread between loan and deposit rates.

Why has Saudi Arabia released so much oil for sale that prices for that have dropped so fast?

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Why has Saudi Arabia released so much oil for sale that prices for that have dropped so fast?
Answer: 

Currently, Saudi Arabia’s foreign exchange reserve is about $600 billion. Saudi’s oil export is about 8 million barrels per day, or about 2800 million barrels per year. At $100 per barrel, their revenue from oil exports would be about $280 billion.

To sustain their current consumption habit and military spending, they need $100 per barrel.

Would it be bad if rich countries print money and instead of doing the QE inserted the money on a bottom up approach?

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Would it be bad if rich countries print money and instead of doing the QE inserted the money on a bottom up approach?
Answer: 

There are several issues here. First, the US central bank, the Fed, is an independent monetary authority and does what it thinks best to keep inflation and unemployment low. They cannot be "asked" to print more money or change interest rates. Second, while there is considerable merit in your suggestion to print money and give them to poorer segments of society, there are easier ways to achieve the same, via tax cuts or the earned income tax credit or higher minimum wages.

What would happen if the US allowed citizens to deduct 100% of cost of school loans?

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What would happen if the US allowed citizens to deduct 100% of cost of school loans?
Answer: 

This is a great question. Currently interest (but not principal) on student loans is deductible within certain limits. The maximum deduction is $2,500 and the amount of the deduction begins to diminish once your Modified Adjusted Gross Income reaches $65,000 ($130,000 if you file jointly). It is a simplification, but let’s treat your question as being what would happen if repayments of the principal outstanding were made deductible?

Does ‘ownership’ or ‘control’ of a business match contribution to capital or input?

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Does ‘ownership’ or ‘control’ of a business match contribution to capital or input?
Answer: 

Partner A secures a loan for startup through a business (business 1) he owns 90% of. Partner A will have significant input in business decisions but little to do with day to day operations. The new business (business 2) is in a different industry but dependent on his already successful business for success and will be located on land owned by business 1. After 5 years business 2 will start to pay rent to business 1 for the use of land at a reasonable to discounted rate.

How is the GDP growth rate measured?

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How is the GDP growth rate measured?
Answer: 

Hello, and thank you for sending us a question! The GDP growth rate is measured relative to last year’s GDP. Usually the Growth numbers that make headlines on the news are of what economists usually call “Real GDP,” meaning that it is already corrected for changes in prices (inflation).

Why would a low savings rate put downward pressure on interest rates?

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Why would a low savings rate put downward pressure on interest rates?
Answer: 

To a certain extent, the quoted sentence is tautological.

As an accounting identity, from the GNP accounts, the Balance of Trade (positive is a surplus) = (Savings – Investment) + (Taxes – Government Spending)

Hence, a balance of trade deficit, by definition, means savings is low relative to investment, or taxes are low relative to government spending (or both)

As an identity from the balance of payment accounts: [Balance of Trade Surplus + Capital Account Surplus] = 0 (assuming no government intervention)

How are Peoria and interior Missouri hog prices determined?

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How are Peoria and interior Missouri hog prices determined?
Answer: 

To explore the relationship between the Peoria live hog price, Interior Missouri live hog price, National negotiated prior day purchase base price, National negotiated slaughter base price, CME lean hog futures price, and farrow to finish profit, a correlation matrix of these series can be computed. The hog price series are highly correlated over the January 2002 – December 2015 period. The correlation between the price series’ and the farrow to finish profit series is weaker but still relatively strong.

Thomas Hoenig

Feature Story

 

Hometown: Fort Madison, IA

Current employment/job title: FDIC, Vice Chairman

For all the criticism and headlines and speeches and votes that go along with being a longtime leader of the Federal Reserve Bank – and now the vice chairman of the Federal Deposit Insurance Corporation, better known as the FDIC, in Washington, D.C. – Thomas Hoenig is a humble Iowa boy at heart.

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