To anyone who has been paying attention to the United States economy, it’s abundantly clear that the country is going through an economic crisis.
Inflation is the new normal, which means that people’s wealth is about to wither away. Most Americans who believed they were receiving a pay raise, ultimately saw the debasement of the dollar cancel their nominal increase in earnings.
Inflation is that deadly.
It represents the transfer of wealth from hard-working people in the private sector to parasitic economic actors who receive freshly printed money from the central banks.
Mass inflation is one of the ultimate economic injustices of our epoch. And it’s brought about by the political class and their partners in the central banking system.
Unfortunately, most people don’t realize this and prefer to blame otherwise productive members of the private sector for our economic woes.
In turn, demagogic politicians pick up on this anger and use it to grow the size of the state and make people’s lives more miserable.
That’s the vicious cycle of government intervention for you.
It’s a fixture of the wacky state of political affairs in the modern-day West. There’s not much you can do about it.
Unfortunately, there are many people who obsess over things they don’t have much control over. These are the same people who consume endless streams of content warning about societal collapse being right around the corner.
While there are many things we should be concerned about when it comes to economic policy, this should not be cause for flailing your arms around helplessly and doing nothing to secure yourself financially.
Just remember, inflation does have benefits to those of us who don’t just throw in the towel.
Seasoned real estate investors have picked up on the fact that being a debtor during inflationary times has numerous benefits. Namely, through the process of inflation-induced debt destruction.
This entire process is actually simple. First, you take out a mortgage to acquire an income property. Then you rent it out to a tenant who subsequently starts paying you rent.
By assuming the carrying costs of the mortgage, your tenant is helping you pay off the mortgage.
One other thing… This mortgage is effectively cheaper due to inflation. This holds especially true with fixed rate mortgages.
Put simply, you’re paying down a mortgage that has become cheaper owing to inflation. On top of that, the value of the property appreciates faster than the inflation rate
Therein lies the beauty of inflation induced debt destruction.
It’s one of the hidden secrets of wealth-building during times of economic crisis.
When you’re serious about building wealth you start realizing that there are things within your control and other things that are outside of your control.
Once you stop worrying about things you can’t really have much of an impact on, you begin to realize that there’s great opportunities to be had even in times of economic upheaval.
It’s those who you use crisis to their advantage who end up coming out on top.
In the meantime, do check out Jason Hartman’s interview with Eric Basmajian about the current state of the real estate market and what it means for the country’s overall economic health.
Are we in for a housing crash like the one that took place in the first decade of the 21st century?
Tune in below to find out:
P.S. We get it.
Things are economically rough.
But nothing great has ever been built by complaining.
It’s in these trying times where personal fortunes and era-defining business are built.
Your path to greatness begins when you stop worrying about things you can’t control and start getting out of your comfort zones and embracing new ways to build wealth.
One of the best ways to break free from economic stagnation is by joining groups of like-minded individuals who are also on the same path to maximizing their return on life. At the Empowered Investor Pro, Jason Hartman has assembled a robust community of income property investors.
These people are not only ambitious but they’re also experienced.
And they’re absolutely willing to give you pointers throughout your investing journey.
This kind of guidance will save you tons of headaches, and more importantly, potentially thousands of dollars.
The Empowered Investor Pro will be your one-way ticket to prosperity should you decide to use it.
Stop worrying about petty outrage politics and start getting more concerned about your economic well-being.
Sign up for Empowered Investor Pro here:
https://www.empoweredrei.com/empowered-investor-signup1
