The Proletariat Strikes Back: Has The Property Flipping Era Reached Its Peak? Why Investing For Cash Flow Might Be Making a come back – July 11, 2021,

Socialism tends to create poverty and the end result of socialism is that lazy people tend to get poorer. I’ve done a lot of charity work in third world countries, and my findings are that a lot of people in these countries are EXTREMELY LAZY! They’d even be lazy by developed nations’ standards.

Why this occurs is often because of their culture and their parents, often whenever charities make their charity videos asking Westerners to send money, the people in charge of production will do their absolute best to show people working to provide for their families, unfortunately, most people n third world countries DO NOT WORK AND HAVE NO INTEREST IN WORKING.

The people who do work and work very hard in these third-world countries are often punished by the government for attempting or daring to be successful, which is why smart parents in third-world countries will often dedicate their lives to giving their children a proper education.

In poorer regions, the WORKING CLASS poor usually will not waste their time catering to lazy folks, they’ll do their best to position themselves to cater to people or entities that can give them enough money to survive. In a nutshell, this is the world we live in and it’s why PROPERTY can quickly become a liability if the owner of said property can’t make their property CASH FLOW POSITIVE!

The government encourages Property Flipping by lowering interest rates and attempting to pick winners and losers in the economy. Once the government begins manipulating the economy, the smart money will often Buy and hold waiting to analyze what the government is going to do and how the government is going to do it.

Once it becomes obvious what direction the government is heading towards, the smart money will either sell their property or they’ll create a cash flow positive business. Most property owners don’t have the skills nor the know how of how to create a cash-flow positive business.

So when the economy begins to deflate or prices stop appreciating, taxes start rising or wage earners start demanding more money the property flippers get put in a position in which their options become limited. Now, as most of us know, capitalism revolves around DEFLATION, there is no such thing as HYPER-INFLATION in a gold standard, what hyper-inflation means in a gold standard is that the currency has no gold.

The reason we’re on a fiat monetary system now is that a Gold Standard would not allow the government to grow beyond its means to service its debt with market interest rates. But a sound fiat monetary system must still adhere to accrual accounting principles.

Accrual accounting is an accounting method where revenue or expenses are recorded when a transaction occurs rather than when payment is received or made. So recently Bitcoin was created and in Bitcoin every Bitcoin ever created is on record, in fiat money, this is not the case, but the private sector in this modern era is in charge of money creation and private banks as an example can go bankrupt as can private businesses.

So when once a private business has to raise prices, it has to raise prices, now in the modern ear, in most Western countries, the governments are rewarding people not to work. This reward for not working is pushing wages up, worse than that, the globalist are artificially forcing energy prices to rise, which raises the cost of living and will put wage earners in a position to DEMAND higher wages.

Private businesses without profitability go bankrupt, and even if Governments plan to permanently subsidize private enterprise, this will put the government in more debt and there’s no guarantee that small and medium-sized businesses will be profitable enough to pay back government loans.

All of these private-sector loans that will not be paid back will be added to public debt meaning that even with near-zero percent interest rates, debt servicing is going to be damn near impossible for governments, which means prices for LABOR will be going up.

There will little to no fiat price deflation, but I like to point out that the ECONOMY will be deflating and cash-flowing properties are very important during a price deflation scenario. Now, while the economy is deflating, there will be property owners who will have mortgage payments that are not aligned with the rental markets.

Meaning that they’ll get no financial benefit by renting out their property, furthermore, when you’re renting out a property, said property requires maintenance and if labor costs rise, you may find yourself underwater very quickly, making matters worse is if prices stop rising, because if prices stop rising home equity and the options for lines of credit disappear.

Now although I’m picking on real estate investors, they’re not the only ones that will suffer if price appreciation stalls, there are

a lot of acquisition entrepreneurs who are deeply in debt will quickly find out that there are no buyers for their cash flow negative businesses.

There are a lot of people who purchased businesses in order to flip them, as labor and other costs rise a lot of the private sector is going to be pushed to the edge of bankruptcy.

From my vantage point, it appears that we’re approaching the end of the Property Flipping era! I suspect based on the numbers that this will begin to happen around the year 2022! If you purchase property to flip don’t be surprised when working-class people start either demanding higher wages are simply stop showing up to work even if federal government welfare stops sending them checks. The cost of living is going to be very problematic in the years ahead!

Interesting times ahead!