At this juncture of American history, one has to admit that the entire economic game is rigged.
We live in a debt-based system where individuals are punished for saving. Yes, you heard that correctly. Saving is the lifeblood of economic stability. A society that doesn’t save or plan for the future is one that’s not long for this world.
Sadly, the current fiat money system that marks the United States is one that discourages savings. Just think about it… an inflationary monetary policy erodes savings like no other. So it makes sense for people to spend the dollars they earn almost immediately. Saving becomes a total afterthought.
It truly is an economic Bizarro World when those who engage in an otherwise normal act of economic prudentially such as saving their money get punished. But that’s what happens when a monetary system is undergirded by fiat money.
Here’s the thing though. Despite how rigged the system is, you can still game it in your favor.
Through income property investing, you can stick it to inflation and make the game work for you. Inflation induced debt destruction is the secret to giving inflation a black eye.
It’s the least you can do in a time when economic sanity is the norm.
By getting into real estate investing, you align your interests with the two most powerful forces the human race has ever known — governments and central banks.
The whole plan of governments worldwide is to inflate away the monstrous debts they’ve accumulated. Every country on the planet is on the inflationary program.
One thing about the US that makes its inflation policy unique is how it enjoys the privilege of having the world’s reserve currency. On top of that, it has the most powerful military in human history.
Contrary to what the doomers and chicken littles say, the US is likely here to stay as the premier superpower. Though it will experience a gradual economic decline.
Nevertheless, we should never let political chicanery divert our attention from the things we actually control aka our wealth.
You see, during times of inflation there’s always a silver lining. Through inflation induced debt destruction, you can turn debt into a wealth-building mechanism.
Here’s how it goes down. You shuffle on down to your bank.
Then you take out a mortgage to buy a property that you will rent out to a tenant.
This same tenant is now shouldering the carrying cost of the mortgage.
As the cash starts flowing in, the mortgage loses real value from inflation.
The bank gets stiffed, but you also receive a fantastic deal.
That’s the first benefit of inflation.
Economic history shows us that properties appreciate faster than the inflation rate.
That’s how Double Inflation Arbitrage works out.
I talk about how you can use Double Inflation Arbitrage and Inflation Induced Debt Destruction to build a lean, mean cash flow-generating machine at the Empowered Investor Inner Circle.
This is the leading community for income property investors who want to boost their wealth even when inflation is raging on.
Sign up here:
https://www.empoweredrei.com/empowered-investor-signup1
P.S. Make sure to check out my video where I discuss how people can exploit our debt-based economic system for their own gain.
https://www.youtube.com/watch?v=i4slyLAf-Wc&t
