Donald Trump, Debt, Real Estate Investing and Why I Believe Rent Price Appreciations May Lead To Spike in Interest Rates – August 10, 2021,

I listen to Ken McElroy because he’s an experienced real estate investor who, unlike most real estate investors, invests for CASH FLOW as opposed to capital gains or the hope of price appreciation. When you purchase any business for cash-flow purposes, the money is made from the initial purchase of the asset and not for the hopes that maybe sometime in the future you can sell the asset for more money than you bought it for.

As an example I’ve owned dividend-paying stocks that I’ve used to purchase other assets, whether the dividend-paying stock goes up or down is usually not my primary concern, all I want to know is this stock going to continue paying me a dividend, because if it’s not, then I’ll have to hope and pray that stock will be worth more in the future than it is today, which is extremely risky when you understand that a market economy is all about FIGHTING DEFLATION

Donald Trump claimed that he built the greatest economy in the history of the world, but the moment Jerome Powell decided to raise interest rates, Donald Trump ridiculed him, soon after Trumps Fed bashing, Jerome Powell became one of the most dovish Federal Reserve chairs in the history of the United States.

Donald Trump is in real estate and when interest rates rise, Donald Trump’s net worth goes down and banks will also tighten lending, which means a lot of these billionaires you hear about might quickly turn into millionaires or even go bankrupt as investors realize that they can get paid more money to own a stock or an investment that pays them more money for less risk.

Now, for people who purchase assets to flip them for more money at a later date, this is deflationary, but for those of us who invest for cash flow, we don’t care! As many people know money used to be backed by gold and there’s a myth that goes around that Gold doesn’t pay a dividend, this is a lie, Gold absolutely pays you a dividend or can provide a person with cash flow, but it’s been OUTLAWED BY THE GOVERNMENT!

The price of gold has been rising ever since Nixon took it off the gold standard, but you see because it happens slowly to the eye and people want fast fiat money gains, the idea of investing for cash flow has been tossed to the back burners of society.

Real estate is tied to commodity prices and labour, the current real estate market is the direct result of government mismanagement. The government has made housing expensive by overly regulating it, to the point that there is now a lot of malinvestment in the real estate markets.

Now if you listen to the video below, Ken McElroy points out that rents are going to have to rise to pay for all of this government mismanagement, but what I like to point out is that if rents rise in this market so will everything else.

Rising prices don’t seem like a big deal until you do the cost, benefit analysis, where America is heading is DOMESTIC hyper-inflation because most people ignore that the EURO-DOLLAR system exists, meaning that there’s an entire market for U.S dollars outside of the United States.

During eras in which Gold was money, there were many strange alliances, mercenaries were commonplace, individualism was practiced by most people who acquired wealth but who were not considered royalty. In China, Billionaire Jack Ma after speaking negatively about the Chinese Communist Party disappeared and then reappeared as a new man.

Now to those of us in the Western World, a powerless Billionaire seems strange, because we have the liberty to speak out against our government, but throughout history, countries did not allow people to speak out against their government, which obviously led to a lot of people who acquired wealth to become economic mercenaries.

Economic history is quite clear, which is why it should surprise nobody why corporations in Western countries often sell out their fellow countrymen. America is the land of freedom and as the U.S government takes freedoms away from Americans, all sorts of strange alliances begin to form.

Now, I’m not sure how long it’s going to take the U.S Federal Reserve to recognize the obvious, but if they don’t raise interest rates, the economy is going to start deflating RAPIDLY which means the government is going to have to spend more money into the economy.

Now, for people in CASH-FLOW asset positions, we don’t care what happens, but for the people who buy to flip, they’re going to have a plethora of issues, because the poor and middle class get hit the hardest by price inflation. Now the cure for fiat price inflation is shrinking the government, cutting regulations, and NORMALIZING(not raising) interest rates.

Based on what I hear and listen to, most humans aren’t there yet, most humans trust that the government has this situation under control. But as Ken McElroy points out in the video below, once rents start rising, chances are the government is going to create ANOTHER regulation, which will obviously be CORPORATIST in nature and likely to accelerate the current problem.

Now, by accelerating the problem it doesn’t mean that there won’t be a temporary fix, it’s just that if an investment can’t produce cash flow without government assistance, then that investment is malinvestment and will indeed be a clear signal to the market of pending economic doom.

The private banks are already not lending, because of prior regulations and prior bad government ideas, so all of this points to more centralization which screams economic DEFLATION! The government’s cure to economic deflation historically is to dilute the money supply, which equates to fiat hyperinflation. Once this becomes apparent I have to assume central bank interest rates are going to spike?

Housing Market Update & Eviction Moratorium Extension – Ken McElroy LIVE! | Ken McElroy Youtube

Interesting times ahead!