Inflation is a Business Plan
If you suppress interest rates, you have financial repression where savers get punished and debtors get rewarded. Jason Hartman reminds you on today’s episode of The Creating Wealth Show that inflation is a business plan. And how do we take advantage of the exact same business plan that governments and central banks all around the world are using to reduce their own debt in real terms? By inflation induced debt destruction of course!
And this is why the concentration of wealth keeps getting more and more severe. But at least you, for your own financial situation, will put yourself on the right side of that equation using Jason’s inflation induced debt destruction technique.
YouTube Doom & Gloom Housing Crash Predictions
There are a lot of YouTubers predicting an imminent real estate market collapse and it’s not clear yet who’s going to be right or wrong, but Jason believes most will be wrong. We’re certainly seeing some adjustments that he predicted a long time ago in the cyclical markets. Markets that are highly overvalued are softening, but we’re not seeing this in the lower end markets. It seems that nobody is talking about rents. Jason has talked extensively over the years about how even just a 1% decline in the homeownership rate equates to approximately 1 million new renters. And what does that do to rents? They shoot up, of course.
As investors, it does no good to agonize over whether the prices are going up or down. There’s probably not going to be any big adjustment in the entry level housing market. Jason has given you a ton of reasons for that: The Hartman Comparison Index, the true cost of housing, the rental rates, the commodities prices, etc. But regardless, when prices soften, you see upward pressure on rents.
Accelerate Your Success
So just understand that as an investor, you want to be yield oriented. And one of the best ways to accelerate your success as an investor is to join Empowered Investor Pro! We’d love for you to join our community. Join Jason on regular zoom meetings where you can interact directly with him and other industry experts. The Empowered Investor Pro is a phenomenal resource with a ton of archives, discounts on events, both virtual and live and so much more. Head on over to EmpoweredInvestor.com to learn more!
If you want to take things to another level, consider joining Jason’s Collective Mastermind which he runs with Ken McElroy and George Gammon. They have a Mexico vacation coming up in Playa Del Carmen in just a few weeks with some excellent speakers, including Simon Black and Chris McIntosh. The Collective Mastermind is an incredible opportunity which focuses on connection, capital and community. Get in touch at TheCollectiveMastermind.com.
Peter Zeihan: Economic Outlook
As much as inflation is rampant in the US in every sector, it’s even worse in Europe. Policymakers are grappling with prices rising at their fastest levels in decades. Last week, the European Central Bank became the latest major central bank to respond, raising its key rate by half a percentage point to zero. Yes, you heard that right – raising it to zero.
A frequent guest on Jason’s show, Peter Zeihan recently discussed on his own channel the state of the economy, where we are going with prices and why European inflation is much worse. Peter mentions the fertilizer limitations on a global scale including the Chinese restriction on the export of phosphate because they need it for rice, Russian difficulty in exporting potash due to rail line shutdowns and the stopping of many European companies from making nitrogen type fertilizers, due to exorbitant natural gas prices.
Couple that with losing Ukraine as one of the world’s great agricultural powers and the largest generation, the Baby Boomers moving into retirement and being replaced by Zoomers, the smallest and we have a shortage of 400,000 workers. That number is going to increase each year. This lack of workers puts so much inflationary pressure into the system when you see higher wages having to be paid because of this continuing labor shortage.
Happy investing!
