Tuesday, August 30, 2016

FUTURE ECONOMIC CONDITIONS - Great Depression Investing


The future of the economy dictates how you invest your money. If you know and understand what’s happening you give yourself the capabilities to be positioned correctly and prevent any major loss to your investments. People who really know what they are doing and accurately predict the future will make themselves wealthy beyond imagine. And those of you who are riding by the seat of your pants………, you better hold on tight because there is a rocky road for you ahead. And you just may come out on the other side without a pot to piss in.

I’m going to lay out the basic principles for you here so you have the intellectual tools to judge what’s happening. If you are new to this please read it slowly, or read it a few times so you can grasp it. This knowledge will dramatically help your ability to accurately predict the future economy and understand what I’m talking about on future recommendations I give. This information is politically tied as a result of the Government as well as the Federal Reserve who have the strongest impact on future economic conditions.

Ok so our Central Bank, The privately owned Federal Reserve, supports Hillary Clinton winning and hates Donald Trump. Their main objective is to create low levels of inflation. 3 percent or so a year. The Central Banks across the world have supposedly found that a small amount of inflation is ideal as it spurs the economy. Yea so they are looking out for you. Not themselves. LOL. I would say truthfully it fills their pockets.

Those things being said, it’ is clear that they think it is in their personal best interest for Hillary to be president because she will create that inflation that they want. Inflation is a tax on your wealth. Inflation is profit on the Federal Reserve Note you see in the picture above. See on the top of the dollar where it says Federal Reserve "Note"? All of you who don’t know what a note is, its a loan. The 12 banks that own the Fed print money out of thin air and loan it to other banks and people through their individual banks. Then what they get back is that  dollar they printed out of thin air plus interest.

I know you are aware that back in the day money bought more. Back in the 50s a painter, working for a painting company, not owning it, could be the single bread winner in the family. His wife could stay home and care for the kids. That largely doesnt exist anymore.Both incomes are needed in order to survive. And that is in direct relation to the average 3 percent inflation that we get every year. Its 3% of the dollars buying power being taken away every single year and going into the fed and governments pockets. If you can understand and grasp this one single principle, it opens your eyes to whats happening. It took me quite a bit of reading and analyzing economic data from the top experts in the country until I got a handle on it .

When inflation is created by the Federal Reserve, the cost of goods goes up. Every year the cost of goods increases by an average of 3% as the dollars buying power decreases by 3% due to the higher cost of living in comparison to the new 3% lower dollar value. Then when the Fed prints money out of thin air adding a bunch of dollars to the system what do you think that does? That increase of supply of dollars in circulation makes each dollar less valuable as well.

Ill give this example to make it simple. We start with 10 dollars total and that 10 is to be shared among 10 people. Now I, acting as the Federal Reserve, will take money out of the system. I take 5 dollars out and that leaves 5 dollars to be shared among 10 people. So the value of those 5 remaining dollars significantly goes up since there are 10 people going for only 5 dollars. Now I add back 35 dollars. So now there are 40 total dollars in the system. And each person is competing to get as much as they can. Those 5 people that didnt have any money before will likely have a few dollars now. So there isn’t such great competition to get each dollar since there are so many more dollars in the system. Pay attention here and know these basic principles. Adding money decreases the value of the dollar. Taking away money increases the value of the dollar. Increased value of the dollar is increased buying power. Decreased value of the dollar is decreased buying power.

Heres one point to the contrary. Increased value of the dollar "in comparison to other currencies" where the dollar goes up but the rest dont, like what is happening now, is increased difficulty on American manufacturers selling their goods overseas. Their weak currancy compared to our strong dollar means they have to pay more of their weak currency to buy our products than they normally would. So the cost of our goods is much higher for them to buy. And if they cant afford it they cant buy it. Or they choose to buy the same goods from another country that sells them that now all of a sudden became real competitive. Now that the dollar went up in value in comparison to their currency. This is hard on American manufacturers. This is why China was intentionally keeping their value of their currency down. So they could be strong global manufacturers. This all making since now?

If you understand monetary policy and why they do what they do, along with what our future economic outlook is like, its easy to see what they are doing is for their personal best interest, not yours. And to sum it up, if they want Hillary to win the election, then is that in your personal best interest or theirs? If they hate Trump, is that in your personal best interest? Think about it...

Right now our future economic outlook is a long period of 10 or so years of World Wide Deflation. Great Depression type inflation. The Credit and Bond Bubble are going to pop. And proof of their inability to control it anymore is in the article below. During periods of deflation, the cost of goods decreases. The value of the dollar significantly increases, as it has been for the past several months. But when other currencies are also increasing along with the dollar its a wash so that doesnt have a significant bad impact on manufacturing. It only does when one currency breaks away from the others becoming stronger while the others stay down.

Fast hard and heavy deflation or inflation cause major problems. However opposite of what you have heard, "small amounts" of deflation personally benefit you. Your dollar has more buying power. We return to the times where one salary  can afford to manage a household. Etc, etc, etc… But it has to be small amounts at a time. Like 3% a year deflation. Not Depression type deflation which we are headed towards. One way to prevent Depression type inflation is to print money as adding money to the system creates inflation.

The key to economic health also includes the spread between our currency and other currencies. Manufacturing in the US was partially lost as a result of NAFTA but the Chinese wiped it out the rest of the way by being awarded Bill Clintons "Most Favored Nation" status for trade, and creating an artificial spread of value of their currency compared to others preventing manufacturing companies in the US and other countries from competing with them. Companies who couldn’t adequately compete any longer, and maintain a profit, REQUIRED by the stock market, moved their production out of the country.

So where have you personally directed your finger pointing as being the problem? Heres where I turn you Democrats away and prevent you from hearing a single word that you just read.

The Democrat party has told you to be mad at the companies, not the Government or the Fed, because they ended their manufacturing in the US to maintain their profit and keep stock holders from selling which would wipe out their company. And they did this as a direct result of Federal Reserve policy of whom is in bed with the Federal Government. Who do you trust? The government? Why has this happened? Is it because the Sheeple are blind? Are you one of the Sheeple? Do you have the ability to learn or will you be stuck in a hole forever?

I can honestly tell you that there are very few Democrats OR Republicans that actually know how this works. Do some research of your own and you will see I am right.

Central Banks Meet And Discuss Global Economic Conditions Below”:

https://ca.news.yahoo.com/global-central-bankers-stuck-zero-unite-plea-help-123135496--business.html?soc_src=social-sh&soc_trk=fb


Some facts about Depressionary economies. The last Great Depression we had a manufacturing base. The similarities were that it was also a borrowing / credit bubble that burst. Not credit cards then but rather borrowing from stores via “installment plans”. They made payments on the products they bought. This time around the difference is we have a service based economy and people aren’t prepared to take care of themselves as 1930’s people were.

Manufacturing:
- Cost of goods gets cheaper.
- Tighter financial constraints on manufacturers as a result.
- Manufacturers then fire workers to reduce costs of manufacturing.
- Unemployment soars.
- Countries put tariffs on one another to protect their manufacturing.
- Manufacturers call for lower minimum wages.
- They continue manufacturing products until they find out people can’t afford them so there is then a realization that there is a huge surplus of goods that can’t be sold.
- At the end they will destroy fields of produce, kill livestock, dispose of products etc to decrease the supply and increase demand bringing the prices back up. This happens at the very end. Last year proceeding a boom economy.

Banks:
- Home foreclosures are up as a result of lost jobs.
- Bank runs and bank foreclosures as a result of diminishing value of their ownership of companies securities that decrease in value.
- During the Great Depression almost half of all banks failed due to being invested in the wrong areas. Of those banks that failed, almost all of them were small rural banks. The 12 banks that own the Federal Reserve will never collapse because they will just print themselves more money.

Government:
- Governments across the world will become militarized and the chances of war greatly increase during world wide depressions.
- Tyrannical oligarchs are rapidly formed in these times. Bad for peoples personal freedom and liberty. The people who aren’t capable of helping themselves and desire to be on the back of another man getting a free ride are screaming at the government to help them and the government gladly steps up to the plate and strips away peoples liberty and freedom while imposing shocking laws and regulations.
- New expanded welfare type systems are put in place.

Real Estate:
- Rents go up and large cities will again attempt to implement rent caps and will again lose in court on their ability to legally do so.
- Land values diminish as the cost of growing timber and produce on them diminishes.
- Unemployment was at at roughly 40 to 50 percent, with black workers at 66 percent. Half of all personal loan companies loans were to people who where having difficulty paying for housing and food costs.
- Waves of evictions happened as landlords were focused on continuing to make their mortgage payments.
- Communists stood up and helped with rent resistance by battling the police when coming for an eviction as well as helping people physically move their property back into their houses when evicted.
- In apartment complexes there were rent strikes where the entire community refused to pay rent.
- Landlords often agreed to significant reductions in rent in order to slow the speed of evictions. So this says, those of you who didn’t buy with room and have a bunch of pigs for houses that don’t cash flow well are all going under. And banks that made loans to people like you will get sucked down with you.
- Governments start building massive low income housing buildings to take care of those that keep getting evicted. As well as we will have an increase in Section 8 spending. The government will put rent caps on what they pay out for assistance and there will be several years with no increase allowed if you want to participate in the program.
- Commercial property crashed as doctors, lawyers etc started practicing out of their homes.

Here’s some common sense advice on what to do now to prepare regarding your investments based on historic events.

We are coming up on Fall which will lead to the start of the winter dead season for selling property. My suggestion to all of you who have a few pigs in your portfolio, is to sell them. You will not be able to do it at the last minute as a result of real estate taking some time to unload. It’s better to sell them now when you can make some money on them than lose them later as a result of not having the additional funds to pay the note when you have tenants that can’t pay their rent, one after another.

If you have mortgages, you will be OK through this economic event if you primarily have good cash flowing properties that you will have the ability to accept half the rent and still cover your note as well as operating expenses, taxes, insurance, repairs, etc. I suggest that everyone spends some time soon getting all of your properties in good condition because there will be a spell of several years where most properties, landlord and owner occupied, will fall into disarray.

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