For anyone who has a clue about the intricacies of economics, inflation is a four letter world.
As it should be in any society that values economic sanity.
However we don’t live in that kind of society.
Governments these days are led by people whose economic instincts consist of taxing, spending, and printing money to satisfy the demands of multiple interest groups who desire government largesse.
This is most apparent in the past year with the federal and state governments embarking on grandiose spending programs while imposing draconian lockdowns to tackle COVID-19.
Now, there’s talk about “transitory” inflation coming into the picture.
While the US should never be counted out in times of adversity, there’s nothing transitory about the current bout of inflation.
The only thing transitory will be people’s financial status as they go from safe to insecure thanks to inflation induced savings destruction.
Inflation is a silent killer that evaporates savings in a hot minute, essentially functioning as a hidden tax.
What’s more, inflation’s very nature goes against America’s founding principles.
If you dust off your history book, you’ll quickly remember how this very country was formed in large part because of the British Empire’s decision to tax American colonists without representation.
The British’s refusal to even entertain a reasonable compromise with the American colonists led to them losing one of their most valuable colonies after the colonists successfully revolted against them.
As we know all too well, people forget their history lessons.
America’s ruling class, whose optimism knows no bounds, is attempting to flout all the laws of economics and history.
This is most apparent with the present leadership at the Federal Reserve.
There’s a strong “it can’t happen here” mentality among members of the technocratic class that run the country’s economic affairs.
However, history has shown that inflation does not discriminate between developed and developing nations.
Weimar Germany is the textbook example.
Before losing World War I, Germany was on pace to becoming a hegemonic power in Europe.
It’s economic and military prowess was second to none.
However, it’s leadership was far too ambitious and bit off more than they could chew and ended up on the losing end of World War I.
Germany was stuck with a nasty a war reparations bill that the Allied Powers imposed on it.
It obviously could not pay it, so the Weimar Republic turned to the most classic way of alleviating its debt burden…printing money.
Even in its defeated state, Germany was no Banana Republic.
It was the site of a highly cultured people with an economic base that could put the country back on the road to prosperity once it cleared its financial cobwebs.
The succeeding Weimar Republic government tried to lower its debt burden by using the classic tactic of monetary expansion.
Because, as you know, inflation benefits debtors.
The problem is that inflation is absolutely devastating for savers and society at large.
With time, hyperinflation became a reality in Weimar Germany as inflation reached a monthly inflation rate of 29,500% by 1923.
Although extreme, the case of Weimar Germany is instructive.
Even prosperous countries can be derailed quickly by misguided economic policy.
As for the US, It’s anyone’s guess how strong inflation will be.
I’m not in the business of fortune telling or giving precise predictions.
There are no certainties, but there sure are probabilities.
And from some very sharp people I talk to, they believe that America will be experiencing uncomfortable levels of inflation in the decade ahead.
With that in mind, I remain steadfast in my belief that having income properties is one of the best things you could have in your portfolio to hedge against this looming threat.
Regardless, of where the economic winds blow, income properties are reliable assets for real estate investors no matter the economic context.
But let’s say that the US is affected by an inflationary scenario, here’s how income properties come in clutch:
Savers get punished as the money they hoard loses its value, while debtors are rewarded by paying off their debts with devalued dollars.
Inflation is a nasty business, but smart real estate investors can benefit from it if they play their cards right.
And since we’re in the spirit of Independence Day, here’s a basic overview of how you can turn your real estate into a vehicle of financial independence if inflation does occur.
When you take out a mortgage to acquire a property, your goal should be to find a tenant or multiple (if you can.)
By acquiring tenants, you shift the burden of paying the carrying cost of the mortgage to them.
During this process, the mortgage loses real value from inflation.
The banks become furious, but for you, the empowered investor, this is a godsend.
That’s the beauty of inflation induced debt destruction.
Get used to this term, because it’s going to be your North Star in your quest to thrive in a world of economic chaos.
The importance of having income properties in your portfolio cannot be stressed enough.
Historically speaking, assets like property tend to appreciate faster than the rate of inflation.
With all this talk about inflation around the corner, you should not constantly wallow in a state of fear.
If anything, you should salivate at the prospect of using your income property as a way to break free from the shackles of financial dependence which many Americans unfortunately find themselves in.
So, you’ll be in the clear if inflation rears its ugly head.
But having genuine financial flexibility does require work.
Just like the Founding Fathers labored diligently and made significant sacrifices to break free from the British Crown’s grasp, you’ll need to exert yourself in order to join the highest level of financial performance.
There are no walks in the park in this game.
But unlike the American Patriots, you won’t need to engage in back-breaking activity to move up the ladder.
With The Empowered Investor at your disposal, your road to prosperity will be simplified.
At the Empowered Investor, I will teach you the keys to get on the path to real estate success.
You’ve probably seen many financial gurus pooh pooh real estate.
My advice has always been the same: Ignore them.
The thing is that over the years real estate has gotten a bad wrap because a few knuckle heads venture into cyclical markets in major metro areas and try to flip houses in order to make a quick buck.
This is a recipe for mediocre, and potentially disastrous results if you jump into this arena without the right information.
From my experience, your path to independence is all about getting properties in linear markets where you can find reliable tenants who will help you pay off your mortgage.
This will come in handy in an inflationary period when people’s savings get chipped away by money printing.
At the Empowered Investor community you will learn all the basics of linear markets and why properties in these markets offer the most reliable cash flows.
On top of that, the Empowered Investor will allow you to tap into a robust network of entrepreneurs and investors who will guide you along the way by showing you where the best linear markets are located.
At the Empowered Investor, there will be nothing but positive energy as you’re surrounded by like-minded individuals who are working to expand their portfolios.
As they say, a man is defined by the company he keeps, and you will be in great company.
Some of these members will be sharing their success stories and, most importantly, the obstacles they initially faced so that you don’t make the same mistakes.
My regular podcast show has great information, but at the Empowered Investor you’ll receive insider information that will separate you from the rest of the pack.
In a time when inflation is creeping up on us, networks like the Empowered Investor will be your economic safe space and launchpad to financial prosperity.
But do act quickly, because the rates for the Empowered Investor will be going up soon.
To join your fellow Empowered Investors in signing your financial Declaration of Independence, head to the link below: