Just because I sell real estate, doesn't mean I have an ulterior motive in saying. . . Put Your Dollars in Real Estate Soon
My friends the writing is on the wall. The fiat dollar system we have grown accustomed to simply isn't working and the dollar will all but certainly crash down around us. Since the removal of the gold standard we have simply trusted the privately owned Federal Reserve Bank to create, destroy and distribute dollars. I would venture to say this trust was deeply flawed.
Being that the FED prints money without any real financial backing as congress, bankers, corporate interests and the other string pullers see fit. It certainly isn't a surprise that they printed way too much. Artificially low interest rates means they are printing money; a federal deficit means they are printing money; increasing spending and not taxes means they are printing money; 700 Billion bail out dollars and the trillions that are to come is simply printed money. Every dollar they print means the value of the dollar in my pocket, your bank account, and your mother's nest egg is lowered.
You might wonder how the dollar has kept up as long as it has with this excess printing. Well my assumption is the primary reason has been that Saudi Arabia and other countries have been denominating oil in US Dollars. Oil of course is the real currency of the world, as it is one of the few things that directly affect everyone living in a society. Denominating oil in US Dollars effectively makes the dollar the currency of the world and thus it cannot crash. In addition to this, Saudi Arabia, China, Europe and uncounted other countries have been buying our US Treasury Bonds A.K.A our debt. Keeping those dollars out of circulation has help artificially prop up the dollar.
Now here's the problem. The oil producing countries of the world have already begun denominating oil in Euros and Yen. The major buyers of US National debt have slowed or completely stopped buying our debt. The dollar previously seen internationally as stable because of our robust economy, military and political clout has lost its international confidence. They are beginning to see it for what it really is, a worthless piece of paper.
And what do we do to correct this problem? Same thing we always do, print more money, printing trillions of dollars in various economic stimulus packages. The problem with our economy is that we printed too much money, creating too much credit, resulting in too much debt. Now the Brilliant solution is to print more money than we ever have in history, all while the international clout of the dollar is vanishing. It doesn't take an economist, which I am clearly not, to see how this plays out.
So here's the point. Buy real estate and buy it soon. Even if real estate continues to decline two things are for sure. Interest rates will rise and the dollar will fall. If you can buy a house now for 50 cents on the dollar, and our dollar is really only worth 50 cents on the dollar, then you are way ahead of the game. Real estate is real it will always have value, even if our beloved dollar does not.
At the G20 summit they are discussing what to do. What they should do is a new sound currency backed by gold or silver as the constitution demands. What they will do is all but certainly a new fiat system just like the dollar except most likely instead of the FED controlling it will be the World Bank and in all likelihood an international currency such as the Amero.
Whatever happens, if you plan to ride out the turbulence in the real estate and stock markets by keeping your dollars safely tucked away in a CD or bank account, I want some of what you're smoking. This is only safe if the dollar is sound, trust me it is not.
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