Posted on 04/14/2021 4:42:00 AM PDT by MeneMeneTekelUpharsin
Hyperinflation is starting to set in. Individuals who study history, economics and the present situation realize we are entering a period of out-of-control inflation. This will destroy the wealth of everyone but those who are able to raise the price of their labor/goods to match the market. Those who can't will perish economically.
The very wealthy are obviously very aware of this. They are buying land/houses/goods which they can finance long-term knowing they will pay back those loans with inflated dollars, making the items they purchase extremely cheap. Or, some are buying every piece of land they can get their hands on for cash (happening in surrounding counties around me) knowing they can sell it for inflated dollars later to pay off other loans. Anyone not making a very high salary is out of the market now for land or a home.
The sociopolitical turmoil that will come with this is almost unimaginable. The crime from the desperate poor will spike. And, the government is encouraging people to immigrate illegally from countries that have this very same problem? All of this is almost unbelievable. Those in control KNOW what they are doing to the country and continue to do it on purpose. It is all very difficult to tolerate.
That is all.
I dunno. Between Bush and his ill-fated Middle East adventures, and Broke Obama's QE, weve been here before.
Did either of them spend $4 trillion in 2 months?
Yup,
It already is happening.
Fuel prices, cost of housing in DFW (it’s going through the roof and people are paying ABOVE asking price) to get a home... Do a little experiment. Go to Amazon and look at the prices of things you bought one or two years ago that are still for sale now.
The “gubbermint” will report whatever they want you to hear. They will simply define inflation and how its calculated to get some rosy number. But we are right now already heading into the arena of inflation.
Did you ride your bike there?
Bill Gates is buying up farms and I don’t think he ever intends to sell them to private hands again.
The Invisible Hand is still at work.
Consider gold, silver and stocks with a low price/book value. (Jmo).
Well, God is in control. Just trying to let those who don't study history well enough know what is about to happen.
“You can raise maybe 20-30 head of cattle on 30 acres....”
That completely depends on location. I’ve have 70 head on 300 acres and I was overstocked in west-central Texas. The land was deteriorating. In Wyoming you can need 30 acres for one cow.
I keep waiting for lumber to go down, but it just keeps going up. What was $8 a year ago is now $38. I would call that hyperinflation.
Fortunately I can fight back by selling my trees for lumber. I guess they are now one of my inflation hedges. :)
In the east rule is one per acre AT BEST.
Wages tend to lag. But do you remember “stagflation”?
What will be your most valuable asset in the coming storm? Read the below slowly and let your lips move. It has very practical worldly application.
The Parable of the Dishonest Manager
Luk 16:1 Jesus told this story to His disciples: “There was a certain rich man who had a manager handling his affairs. One day a report came that the manager was wasting his employer’s money.
Luk 16:2 So the employer called him in and said, ‘What’s this I hear about you? Get your report in order, because you are going to be fired.’
Luk 16:3 “The manager thought to himself, ‘Now what? My boss has fired me. I don’t have the strength to dig ditches, and I’m too proud to beg.
Luk 16:4 Ah, I know how to ensure that I’ll have plenty of friends who will give me a home when I am fired.’
Luk 16:5 “So he invited each person who owed money to his employer to come and discuss the situation. He asked the first one, ‘How much do you owe him?’
Luk 16:6 The man replied, ‘I owe him 800 gallons of olive oil.’ So the manager told him, ‘Take the bill and quickly change it to 400 gallons. ‘
Luk 16:7 “’And how much do you owe my employer?’ he asked the next man. ‘I owe him 1,000 bushels of wheat,’ was the reply. ‘Here,’ the manager said, ‘take the bill and change it to 800 bushels. ‘
Luk 16:8 “The rich man had to admire the dishonest rascal for being so shrewd. And it is true that the children of this world are more shrewd in dealing with the world around them than are the children of the light.
Luk 16:9 Here’s the lesson: Use your worldly resources to benefit others and make friends. Then, when your earthly possessions are gone, they will welcome you to an eternal home.
Now, what is the most valuable resource you will need in the coming storm? Can anyone tell me?
Yeah, the east and midwest get more moisture than the west. Crop production is much higher there too. Which explains the difference in land prices.
I would like to think the property owners would revolt if this is the case.
Too late for that. Property taxes here are legally raised 10% each year. A few years ago, exactly 50% of the houses in our neighborhood had for sale signs. We used to know everyone around but not anymore. Taxes used to equal 2 weeks of income. Now, they’re 4 months of income thanks to the CA invasion raising prices.
We hang on by our fingernails every year. The neighbors on one side sold some other property to keep this property. The neighbors on the other side were wanting to retire 10 years ago but have to keep working to pay the taxes.
“What was $8 a year ago is now $38. I would call that hyperinflation.”
You can call it hyperinflation but it’s nowhere near that.
Most people have no clue what hyperinflation is.
It’s when loaf of bread is $3 in the morning $30 that night, $300 the next day, $3,000 the next day, and $300,000 the day after that.
“Where the hell do you live? Those are 1955 prices in central Texas.”
I guess there’s no Aldi or Lidl grocery store chains in your area. Milk for a dollar and eggs for 89 cents is about right. Bread is about one dollar. Bag of oranges - $1.99 last week. Ten lb. sack of Green Giant Idaho potatoes - $2. Get your neighbors organized and petition Lidl to open a store in your area.
Hint,
Do not focus on the details or methodology, but the intent of the manager.
Post WWI offers insights. Good companies provided Germans/Austrians some protection from hyperinflation. Still got hit, but not as badly.
When Money Dies provides good info.
https://www.goldonomic.com/When%20Money%20Dies.pdf
Also recommend reading Anna Eisenmenger’s diary about living through this period. She was an upper middle class housewife, who’s antidotes are discussed in When Money Dies. Her story of surviving hyperinflation is very interesting and can be found as a PDF.
What you are seeing in DFW real estate is a huge demographic shift from other parts of the country. The same thing is happening in ID, NH, ME, VT, SC, AZ, WA, FL and a few others.
They are fleeing from San Fran, NYC, CT, NJ and other big cities.
Just for fun go to realtor.com or zillow and pull up Greenwich, CT. There are 9 pages of houses for sale. They start at $695K and go up to 55 million on the water. This is where the hedge fund guys live. There is even a house for sale on Bush Drive. GHWB grew up down the street or in that house.
My point is real estate in those high rise apartment buildings in SF, NYC, Chicago and others are going DOWN.
In addition, there is empty office space available everywhere. Even in places like here in Nashua, NH.
Many people will continue to work from home even after covid is a memory.
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