Cashflow and Deflation: Why Hyper-Inflation in U.S fiat dollars is unlikely, Non-Cashflow producing assets and DEBT SERVICING – July 10, 2021,

So Dave Rosenberg met virtually with Jay Martin of Cambridge House and they talked about run-away inflation. My two cents in this argument is that REAL inflation only occurs via INNOVATION it’s often sort lived as soon competition enters into any space.

As in example if it weren’t for the Government Uber would have wiped taxis off the face of the earth, if it wasn’t for the Government Real Estate agents would have to provide real value and would have to compete with technology, if it weren’t for the government, a lot of asset prices, priced in fiat dollars would be priced on market interest rates.

I’ve in prior posts argued for FIAT MONEY, because people without financial education in a Democracy will always vote to steal from their fellow citizens. In 2021, I don’t have to worry as much about my personal gold as I would have, had Canada’s money been backed by Gold.

So although I personally value my wealth in Gold, I’m okay with the idea of people valuing their wealth in fiat dollars. Now, the downside to fiat dollars is that a lot of dumb political ideas get to circulate through Western Societies for longer periods of time.

Although I’m a buyer of Etherum and Bitcoin, I personally think they’re over-rated as CURRENCIES and as ASSETS. With that, I personally value my Etherum way more than I value my Bitcoins because I’m a personal believer in Non-fungible tokens(NFTS).

Why I bring this up is because in a market economy, perceived value is everything, how I personally value something is irrelevant to the overall FREE market. What the government does in order to prop itself up is, prop up asset prices, now I don’t know if Government people necessarily know they’re doing this, but whenever the government grows or sends out free fiat money, it’s actually distorting CASH-FLOW.

If as an example the government got out of the business of OVERregulating tobacco, most people would be surprised to know that tobacco would most likely outperform marijuana in a free market. What makes marijuana and even cocaine so valuable is the government. The government creates artificial scarcity, which pushes up asset prices.

With that said, people who don’t care about government regulations often find that their value artificially appreciates, but their stock also often comes down just as fast, similar is true with people who purchase assets that are derived on government intervention.

If you’re in real estate debt as an example, you’d have to ask yourself if you’re underwater if interest rates were to normalize? Now, I have friends who own their homes free and clear, no mortgage no nothing and they rent out their homes. Now, in this market, most MODERN DAY real estate investors would say having a paid-off mortgage is for suckers, because first of all you still have property taxes and you also can’t put that money in your home to work.

Based on government intervention into the economy, these modern-day real estate investors have a valid point, but on the flip side, if there’s a market correction and you own your home free and clear, even in the worst of DEFLATIONARY OR INFLATIONARY markets, you can still go to the bank and get a collateralized loan against your property, whereas the real estate investor who is betting on the government debasing the money supply, is hedging on there never being a financial crisis.

What I like to point out is something I learned from the experts which is that the Federal Reserve CURRENTLY is playing a dog and pony show. The Federal Reserve isn’t PRINTING money, it’s loaning, money, now is the process a scam? of course, it is, but do you want a government ‘protected’ pension or not? Do you want a welfare State yes or no? DO you want wage controls? Do you want the government to insure a portion o your money from a bank run? DO you want to allow politicians and the media to openly lie about economics?

For myself, the answer is no, but most humans are economic idiots, they’ll answer yes, to at least one of these questions which is the basis of my fiat money argument. Socrates pointed this out long before Karl Marx was even a topic of discussion, people forget the communist manifesto was a POLITICAL PAMPHLET! and talk about looking into the future, Socrates imagined Karl Marx Centuries before Marx was born.

Now, the free market is a delicate subject, because it requires a degree of LOVE for your fellow man. Now I am man enough to accept that Dave Rosenberg is more successful than I am because Dave Rosenberg offers the world more value than I offer, but most humans, can not accept those facts.

Most humans would rather economically enslave Dave Rosenberg for being successful. Humans will first try to disarm Dave Rosenberg, then they’ll raise his taxes, and then they’ll outright steal from him using the democratic process. The Law or I should say the Republic is the only thing preventing the Democracy from destroying the free markets.

As the socialists continue to chomp away at freedom, it’s best their followers be left with worthless pieces of FIAT paper, that’s my opinion on the subject. How I see things personally is that deflation creates cash flow problems because those of us operating in the free market will need to find price discovery while the Socialists raise the cost of living and potentially create price controls.

This is an obvious debasement of the currency, but things don’t happen in a straight line, Joe Biden is by far the dumbest president I’ve ever observed and unlike Right-wingers who say Joe Bidens best days are behind him, when I research Joe Biden, he has no best days, at least economically he doesn’t. Joe Biden is an economic buffoon, so I’m forced to figure out the mentality of his handlers. Janet Yellen has also come out of the closet as a Globalist, which in my opinion makes her a Global-Socialist, with her one size, fits all tax policy.

Now, recently Joe Biden pulled the troops out of Afghanistan because the Afghan rebels outright refused to adhere to Western laws. I bring this up because any new word order will always be a declaration of WAR and any human dumb enough to believe that everyone will bow down to a new world order hasn’t researched history.

Sometimes the best of people will align with their enemies, mercenaries are often created when one power appears to be the dominant power, In the modern era, a lot of large corporations behave like mercenaries, you’ll read about idiots in the media asking why is this large American corporation aligning with China? When the answer to the question is obvious!

For myself, I think hyperinflation occurs when people simply start rejecting the U.S dollar, price inflation occurs when private businesses are FORCED to raise prices because of bad government policies which drive up their costs. Now when governments force prices up, cashflows get distorted, and when cashflows get distorted, people are forced to sell but not ALWAYS FOR A LOSS

When I see a lot of real estate property price flippers on the market, that to me is a sign of cash flow problems, and this is deflationary and requires prices to go up, but for as long as Joe Biden rewards wage earners to be unproductive, this will appear to be inflationary, but CLEARLY, the economy is DEFLATING when most SMALL and medium-sized business can’t cash flow positive the economy is DEFLATING! And the mere fact that most people in countries like Canada and America can’t SERVICE their debts without the help of the government equates to deflation

Interesting times ahead!