Its not often that I talk about politics in this blog. Real Estate investment strategies are the core of the discussion here. However, 27 days from now, Americans will go to the polls. And in this election, I cannot think of another moment in my lifetime where the people of this country have a clearer choice. It is a choice that will determine what kind of country and what lifestyle my children and grandchildren will live in.
I am firmly convinced that there are forces at work to destroy the "American Experiment" that was based on limited government, self reliance, self initiative and the belief that as Jefferson said, "THE GOVERNMENT THAT GOVERNS LEAST GOVERNS BEST" In the last 18 months, a larger percentage of our national GNP has been nationalized by the federal government than has been nationalized by Marxist Hugo Chavez in Venevuela in the last 8 years! That is truly frightening.
The government has printed almost three times the amount of money that was in total circulaton just 2 years ago to buy our own debt with our own FUNNY MONEY. The ONLY reason that inflation has not taken over like a wild fire is that so many Americans are under water in their mortgages. That means they have no credit to go out and spend. Corporations are holding over 1.6 trillion in cash reserves and are not investing in new plant and hires because of the uncertainty of what new regulations or taxes this out of control government will do next. BANKS are hold reserves of over 1.8 trillion but are not lending.
But when the moment comes in the psychology of the nation that makes people feel they better spend it or lose it.....WATCH OUT! It will hit us like a train in the night and there will be no stopping it. There is NO EXIT PLAN by the FED in printing all this cash and all they have done is to delay the pain so that it is MUCH WORSE later on.
Invest? Gold, Coal, Euro Bonds, and seriously devalued real estate that is income producing are your best bets for the future. I believe that real estate values will sink another 20% unless the foreclosure and credit markets resolve. LENDING is the key to real estate sales and LENDING is locked up. If you are an all cash buyer, you are in luck. There are tremendous deals out there that I believe will see great gains as inflation takes over. Stocks? NO WAY... inflation will kill recovery and joblessness will rise affecting any consumer related corporation. But, everyone needs a place to live. Many who own now... will be RENTING in the future.
