Heres the problem (i have a nice pm stack already just for the record)
Looking at the economy from a macro standpoint i think we are heading toward a DEFLATIONARY supercycle. Sounds crazy but if you follow the money it makes sense.
Without going on an extreme economics rant ill summarize my thinking as follows:
- fed 'prints money' by increasing banking reserves.
- banks now have increased lending capacity but do not want to lend money to people because the economy is bad and assets are 'overvalued'.
- The stimulus money is being issued out of the TGA account from the fed, which is considered a liability on their balance sheet. That money is being circulated to people who are investing that money in the stock market, savings account or crypto. As evident by the low money velocity and asset bubbles.
- money markets now have all of these funds and need to provide a safe low risk investment for their stakeholders so they take advantage of the reverse repo process to hold bonds overnight for a 5 basis point interest rate.
- reverse repo accounts have to be 100% backed by the money they were lent. This money is aslo a fed liability.
- the fed now transfers the banks lending money (which the banks are paid 15 basis point interest just for holding) to cover the reverse repo liability.
- the banks now have less capital to lend out and stimulate the economy. Meaning lending (which is the major cause of inflation, the reserve banking process) doesn't happen.
If you believe in modern inflation theory where inflation is based on money velocity as well as money supply, it is evident that ironically DOLLARS are one of the safest places to be because of the upcoming liquidity crisis.
The horrible thing about this is that it is possible to have DEFLATIONARY dollars (in regards to world currencys) but still have INFLATIONARY prices (due to supply chain fuckups and businesses not being able to access funding due to the banks not lending.
So there really is no safe haven. Thats why i asked my question just to see what other intelligent, non NPC people were doing with their money. I am probably going to be buying lakefront/mountain view property out in the midwest And see if i can start setting up my little homestead there when real estate prices stabilize.
>So there really is no safe haven. Thats why i asked my question just to see what other intelligent, non NPC people were doing with their money. I am probably going to be buying lakefront/mountain view property out in the midwest And see if i can start setting up my little homestead there when real estate prices stabilize.
Absolutely, I completely agree. If you can manage to be close to a natural source of clean water, (fresh water ideally because it goes without saying that if you can do without desalinization that's much better), that's really a big deal.
You can do without electricity, can do without a lot of stuffs related to it, such as tech. But you CAN'T do without water. And if shit goes real ugly, you want a place where you are not FORCED to rely on the grid or the supply chain to just live. You can but you're not forced. And a place fuckers will take forever to reach eventually, so not along the main routes of migration.
That to me, is a good investment, it really has real value
Now it's not a cash machine that's for sure, while you sure still can eventually rent it. If there's a place to park a boat you can rent it to lol
Haha. Sounds good to me!
I do like real estate too, but I question if now is a good time to make a purchase. Market high AF atm. A lot of people have the 'head for the hills' idea at the same time. So depending on where you go it isn't going to be cheap.
Places like upstate MI and the hills/mountains of TN are still reasonably priced. Both locations have options to live on the water since TN has a lot of man made lakes. Out west is getting crazy expensive, unless you like desert.
Desert is rough, it's one of the most hostile environment, barely any water https://www.youtube.com/watch?v=Aui5JYIkY3o You have to spot an oasis essentially
> You can do without electricity, can do without a lot of stuffs related to it
I agree but I think solar generators are also a worthwhile investment because they can provide electric for a freezer, stove, temperature control or a well. You also do not have to rely on society to provide gasoline. I have enough food water medicine to comfortably last 3 months but i want to increase that to a year. Who the fuck knows what is gunna happen in commie america. I just want a nice traditional non kiked community where i can settle and raise a family without worrying if my 3 year old is learning about trannys in preschool.
Solar generators are often used on sailboats for a reason. It has its flaws, it's not perfect, but yeah, that's anything but a stupid thing to own in case of SHTF. You're glad to be able to power and charge 12v techs, it comes handy
Have you looked into a TIPS etf?
(post is archived)