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've also been hearing about economic collapse, TEOTWAWKI, and Blue Helmets marching down Main Street for a long time. And yet, a well-diversified portfolio of financial assets purchased at the beginning of the Clinton Admin would have yielded more than a sack of gold bars. Gold's compounded annual growth rate of about 5.3% over that timeline is lower than that of the S&P 500 of about 7.88%. Simultaneously, inflation has faded into the background.
Now, I don't believe that ignorance is a smart investment policy. Certainly, with an extra $4.6 trillion in M2 sloshing around since Feb 2020, the groundwork for some inflation is there. And true, real estate in some places is hot right now. I believe a prudent asset allocation including food, water and ordnance is a smart idea.
But don't forget the Hunt Brothers and their all-in decision on the silver market. And Hedge Funds and Game Stop. And everything in between. All the smartest guys in the room seem to get it wrong with enough frequency where I don't think they're what I should follow. I also don't believe scare porn is attractive, either.
Inflation is here now.
Hyperinflation is adopted in a lack of confidence in a government.
I could see us moving that way.
Money is moving into physical things - coins, art, rare stamps, metals, land, etc - and crypto, as the government destroys our dollar and aggressively pursues taxes
If you lose your home or business due to hyperinflation then you’re doing something wrong.
I wonder how well stock and ownership in corporations does during a hyperinflation? I suppose it may depend on what sector the company is in.
“And if you already have some land, they will raise property taxes so high you won’t be able to keep it”
I would like to think the property owners would revolt if this is the case. You can only tax people so high before the revolt. Example: American Revolution War
Property tax is conducted by the State, County and City governments. The citizens are in control of their local government officials via the elections. The local office holders would be voted out of office after taxes hit a Revolt Level.
Above is true unless Dictators take over. Unfortunately a lot of those have been popping up in our local governments over the last year.
Wait...they told me it would be transient. // sarcasm
We realized very quickly that the property taxes were going to chew up our retirement income unless we grew a crop or raised some livestock in order to get an agricultural exemption on those taxes from the county.
So in our mid-60s and with no experience, we went into the cattle business and now have a smooth running beef cattle operation that not only exempts us from most of our land taxes but selling the calves each year more than pays for the high taxes on our home, which is not exempt.
While we were at it, we designated an acre of land as our family cemetery, which reduced the property taxes to zero.
On top of the fact that Florida has not state income tax, we run our startup cattle operation at a loss, which reduces our federal AGI to the point where we owe little to no federal income taxes.
Now instead of barely getting by on our retirement income, after the initial expenses of building barns, installing fences, laying water lines for stock tanks and buying tractors and other equipment to run the cattle operation, we are now living very comfortably and have paid off our home, cars and debts and are still able to put money into savings and investments every month.
We live more comfortably now and are more financially stable than we were when we were running the rat race trying to make a living and paying the bills during our working careers in the big city. Who woulda' thunk?
You can raise maybe 20-30 head of cattle on 30 acres....
“What ‘wealth’ is this author referring to exactly? Cause given the recent articles over the last few years or so, 20-23% of Americans have no retirement savings account, nearly upwards of half of Americans don’t have 1-5K in savings and roughly 5-10% of Americans have 10+K or more in savings. And this is not even factoring in what financial damage COVID lockdowns have had over the year.”
Wow that is an eye opener. I did not realized financial education is that bad in the USA.
The administration will have us all wearing WIN pins.
Whip
Inflation
Now
....unless you own crypto
Not its way out. Its way in. Rule by crisis.
Inflation is built into the system. The fed has a “target inflation rate” currently stated as 2%. That number will soon be a fond memory.
Prices have gone up, and are shooting up rapidly. This will target those who have worked hard while they were able and now have saved some money so they won’t be a burden. Their savings will soon = zero. And then they are dependent on government which will reward them with free euthanasia.
Inflation has nothing but advantages for the statists. The “economic indicators” will be all going up (as everything else) and they will claim that the economy is doing great. Since the media is fixated on the “DOW” that number is watched minute by minute and every time it reaches a number with many zeros, bottles of champagne are opened. A DOW at 50,000 is nothing to party about, if a loaf of bread costs $10.
The ruling elite is protected from inflation. They have given themselves cost of living adjustments, so they don’t care. People receiving Social Insecurity get a .2% increase.
Reparations will bankrupt anyone who was foolish enough to work at a job and earn money. Reparations will reward anyone who made a living by voting democrat.
Agree.
Tell me something I already don't know.
We raise cattle so we're well aware of the formula about one cow per acre.
We max out every year at between 26 to 30 cows, depending on how many calves we have and how many we sell.
“and they could not care anyway.”
It is intentional destruction. They know it will collapse the system.
“Wait until the dollar is not longer the world’s reserve currency...”
That is exactly what this is all about.
Blam,
JUST GREAT!
Where the hell do you live? Those are 1955 prices in central Texas.
You don’t sell all of them every year, right. You have a breeding bull?
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