>The trick will be how they do the reboot?
>Housing doesn’t blow up. it just doesn’t grow as fast
Thanks for replying.
If one accepts the premise of “no more free rides” post reset, then welfare/social security/other state income distribution schemes seem to be following the Dodo.
Assuming these programs are 86’d, you’ll face a massive amount of civil unrest (duh) stemming from the angst of those dependent on the program. Would also guess the more dependent one is on a gimme-dat, the greater they’ll chimp out. Set that against the backdrop of falling asset prices / debt bubble of everything bursting and one will be facing quite the financial boogaloo.
>no silver bullet
Partially disagree - there IS a silver bullet: sound money and ending gimme-dats. The catch is the path from where we are to where we need to get to is fraught with peril from the general population freaking out during the transition phase, even if they will end up better off once the dust settles.
Housing is an interesting example - as I work in RE I’ve seen, and benefited, from:
>1. Rents increasing to the point where tenants are being squeezed (i.e. more than 60% of their disposable income goes to their housing expenses)
>2. RE assets increasing in value and outpacing inflation
>3. Using the fiat-Jew to leverage up
What’s driving this mess in housing - and I presume other sectors too - is fiat debt. When you magic up cheap faux fiat it just serves to inflate the asset prices (as the purchaser can afford to borrow more) and in turn the asset itself needs to squeeze more from the resident base to service the increased debt burden.
Factor in the those who MUST have yield - think pension funds, insurance co’s, etc. - and suddenly you’ve also blown up the demand side meaning more “real” cash is entering the RE markets, being amplified with fake cash (debt), to drive up asset prices far beyond what their “real” value should be.
And this is not just for commercial/apartments, you’ll see it in the SF residental side too. New couples just getting started can/MUST borrow MORE to buy the SAME property and therefore service GREATER debt.
Also consider what the CB’s say…we must FIGHT deflation. We must target [ x% ] inflation. Those asshats only have one product: DEBT and the more they issue, the more power they accumulate. On the investor side, at least in RE, one can (and I certainly do) profit from this but if the CB trend of fiat keeps marching on, it’s only a matter of time before even the owners get squeezed out…it would be like a Russian merchant making a fortune selling arms to the Bolsheviks prior to the revolution. Yeah, you’ll make some decent coin but you’re basically participating in the crafting of your own noose.
Apologies for the rant there but my key point is CBs are not our friends and if they say “we worried about dat deflation”, we the people should be running towards it.
As to the “how” what I see right now is the FED forcing liquidity into the markets and the INSTANT the markets perceive this as ending, all hell will break loose.
Assuming one’s got a tight handle on the psychological side - read: people even though they’re pissed/afraid are not rioting in the streets - one’s got the stage to make the deep changes to our monetary system (finalize the purge of the debt, revert to sound money backed by metals/distributed ledger).
Prior to 8ch going dark NewNoteAnon repeatedly hinted at the digital ledger being wiped as the MO for debt purge and transition back to base metals.
I’m not saying I agree/disagree with that but will say again this will freak people the fuck out. A gimmedat won’t care (s/he won’t have any currency on deposit anyways) but there will be many who will perceive their life’s work, plans for the future, and dreams vanish. If you couple this dynamic with the no more gimmedats, therefore also pissing off the gimmedats, you’ll be staring down emotional, angry, people from across the financial spectrum who are now dangerous as they’ll perceive they have nothing to lose.
Even if ALL will be better off in the long run, you’ll still have to address the short run…and on that matter I’m left scratching my head. Will be curious to see what the writers come up with, I guess!