This Kansas City Federal Reserve report(.pdf) on credit conditions in the Midwest agriculture sector made the rounds last week as it offered more confirmation that the central bank in Washington is indeed blowing more bubbles in their multi-year effort to re-inflate the U.S. economy after the last asset bubble burst.
Of course, last summer’s drought was a factor in irrigated land prices rising sharply, but the fact that non-irrigated land prices rose 25 percent – after the worst drought in decades – should be setting off all sorts of alarm bells somewhere. According to this Bloomberg report, new Kansas City Fed President Esther George and new Fed Governor Jeremy Stein seem to be paying attention, but it’s not clear that anyone else is.