The only reason why US residential real estate is not in a bubble

Stop listening to the economists, it all comes down to the math
More objectivity, less emotion

I generally do not heed the predictions of the well-paid, but financially compromised real estate economists, for they are all usually incorrect. Most of these market shills are not involved in the residential market they way we investors and property managers are on a daily basis. We active investors are better able to feel the pulse of the marketplace than any well-paid analyst. Savvy investors who directly own their properties will generally come out ahead over time.

As long-term investors, we only care about the numbers; specifically I prefer analyzing what’s behind the discounted cash flows of a particular real estate investment. The easiest way for me to determine if a property is overvalued/undervalued/fair market is by determining an investment’s capitalization rate (cap rate) and internal rate of return (IRR). I then attempt to compare these current values to its historic norms to see if the price is too expensive or still offers value to me. Thus, the current market value only tells us part of the story. We need to see how the rental market has performed over this time frame. While we may not be getting full market rent, other investors will price real estate off this potential amount.

A look behind the numbers of two of my single-family dwellings

A house

I recently rented out one of my single-family houses, and the table directly below shows the specifics. I did not charge full market rent, but only have four people living in this 5 bed/3 bath house. However, I was easily able to increase my rent well over $1,200 a month. I received about 10 applications in the five days it was listed, and the phone was ringing non-stop.

Take a look at the change in the capitalization rate; it actually increased over the four-year time frame. Based on these numbers, the price of the house actually offers me a better value than that of four years ago!

A condominium

Let’s take a look at another property I just rented out. In this instance, it is a 2 bed/2 bath condo. I initially advertised it last week on Zillow for $1,785/mo., but with renter competition, I am now going to recieve $1,900/mo. And this is not even full market rent of close to $2,000. The property was only listed for four days, I had 12-13 different parties come by during the open house, and received about 10 applications.

As we can see in the above example regarding this condo, while the capitalization rate has declined, this property still offers an investor an ample cash flow and rate of return. While the cap rate has declined over the past four years, it has not dropped to the lows observed in the real estate bubble of the mid- to late-aughts. During the height of that real estate bubble, the cap rate on this property fell to as low as 3.5%. As we can see, there is still a lot of room for prices to rise before we call it a day on this cycle. If the cap rate dropped to 3.5%, the condo’s price would have to double, while the rent stayed the same.

Please note that I did not address the concept of the IRR in this article, since it wasn’t necessary to illustrate the main thrust of my post; residential real estate in many parts of the United States still offers investors (and homeowners) some compelling value. This determination, of course, is  based on the growth in market rents.

I predict that the capitalization rate on the single-family detached house could approach 4% if bond yields stay in their historically low range for the longer-term. The capitalization rate on the detached house in the mid-aughts RE mania was as low as 4%. Moreover, given the trajectory of rent rates, I look for more rental rate increases over the years as more immigrants pour into the local area.

If the cap rate on the house falls to 4%, this would imply a market value of $745,000. If the cap rate on the condo fell to the same level, this would imply a market price of $428,000.

Are we in a real estate bubble? Based on my experience I say we are not even close. If you live in Australia, New Zealand, Europe, or Canada, I say come to the states. The US still offers us opportunity. I have run numbers for many people around the world over the years and know the cap rates in your countries are less than half of what they are here in the States.

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42 thoughts on “The only reason why US residential real estate is not in a bubble

  1. There has been a massive residential property buying spree accelerated by the engineered covid pandemic. The asking price is merely a suggestion and a cue for would be buyers to step in and say how much more can they pay over asking. In my area (nor cal), from what I know, the younger folks are legitimately qualifying for these big loans. The whole thing seems out of touch with reality just like leading up to 08. I’ve been looking to replace my condo and move into a house but I have a hard time justifying these prices. I’d have to pay $150K over just to not end up in a gang or tweaker neighborhood. Or do I sell now and wait?

    I have to wonder if we are heading into something not unlike 08. People signing up for 30 yr mortgages because the interest is low and their salaries are high. The engineered work from home lifestyle means you can relocate to an unpractical distance away from the office. Has anyone ever heard of Zoom prior to 2020? If these big tech firms are running on credit then the whole thing can fold like a house of cards when rates go up. Those who are employed by the over leveraged tech firm will find themselves an employee of the state at a lower wage that is more in line with reality? The whole thing smells like a set up to me regardless of how good of a deal housing is compared to the rest of the world.

    During the Clinton years the bar was lowered so the paperboy can buy a house in Beverly Hills using “stated income.” Seems like home loans were found in Cracker Jack boxes. All that was needed to complete the plan was to sit back and let the game run its course until everyone hits the wall. Just like that Blackrock becomes your landlord.

    One thing I know is it takes a vary long time to change the course of the Titanic. But in order to change course all the passengers need to be paddling in the same direction. Enter the private central banks or BIS as a means of financially steering people in a direction that is preferential to TPTB. I have said long ago that nothing will be taken by force. The people will go willingly.

    1. I completely agree with your observations here. I want to put out a podcast this weekend on the markets. I put out two post comments yesterday morning regarding the NASDAQ 100 futures and gold. Gold took off in the afternoon after some fed information and NASDAQ fell out of bed.

      The mortgage rate has risen to 4% and I think you could be correct here. I worry there is some sort of Paul volcker set of circumstances coming.

      If the establishment wanted to collapse the markets, the opportunity has presented itself on a gift wrapOed silver platter.

      We could see some sort of catastrophic dislocation. While this is not the most likely, I have to establish probability of at least 30%.

      Even befor the NASDAQ collapsed yesterday afternoon I did not like the chart action and told people to sell the rallies. The fact that the NASDAQ 100 cannot retake it’s 200-day moving average is very telling to me.

      Look what Netflix, Facebook, and Zillow have done. The beatdowns have been relentless.

        1. This is very important to keep in mind as we move forward; the inflationary prices pressures have been the exclusive result of globalist policy.

          1) we discussed in great detail in the past about how the COVID stimulus was handed directly to the end user on a wholesale level. This created enormous demand in every sector,

          2) while at the same time supply has been constricted. The consolidated power and wealth of the past decade or so since QE was originally initiated has facilitated the concentration of the supply chain around the world.

          Since the supply chain restrictions have been relentless, while demand has been artificially induced, price pressures have been continual and constant.

          3) as the article you link states, there have been extremely relaxed treatments of distressed debt.

          If the globalists wanted to keep things going, they could work to loosen the supply chain, but that doesn’t seem to be happening. The stupid truck convoys come at a peculiar time for the supply side saga. Hmmm….. Right wingers blamed on this one. I do not see the supply-side pressures abating any time soon.

          Keep in mind it’s all generated and manufactured. Didn’t have to be organically.

          Now war pressures threatening supply chain.

          I could see a possible scenario where the bankers ruin the market bubbles they PURPOSELY created through their intentionally lax policies.

          I am not saying it will happen, but the globalists could snap open the trap door with no way backing away from the gallows platform.

          Picture the people being wiped out. The globalists will offer a solution to asset owners and investors the chance to be made whole again by buying into a new system.

  2. How do you balance the anger and vindictiveness as you walk the path of Christ, makes no sense my friend. The degenerates need your help, not your consternation. God and money, oil and water.

    1. I am here to preach to the small remnant. They are tired of the lies. I show them the truth. This isn’t vindictiveness. I communicate to those who are in need of meat as we enter these last few days.

      I have anger. Jesus also had lots of anger. He equated a woman with a dog. He called the willfully ignorant fools. he went nuts in the temple when he saw the S of S plying their trade. He told his adversaries they did the work of their father the devil. he called the lawyers and rabbis hypocrites. My anger motivates me to be self-sufficient, so I have ample time to research and study, and to tell you to prepare and seperate from the heathen and fools.

      Listen to what I say, not how I say it. Watch what I do. If you don’t like the cut of my jib you can always go to Pastor Lawson’s YouTube channel for reaffirmation of the many.

      1. Fair enough, point taken. Don’t forget the good. People who do whats right, work hard and are honorable in a world going to hell.

  3. im a new sub and appreciate your insight especially thru scripture. ive always felt that reality today is scripted. with the private central banks being created over the last 100 plus years, a network society has been built to plunder the nations on a biblical scale. im not much of an investor but do own a mutual gold fund and a bond with GWG Holdings my question is; in recent post you suggest to sell all stocks and bonds and move to cash. would that include selling a mutual fund that holds gold mining shares?

    1. I agree with your assessment in that reality is very well planned out and there is nothing left to chance. It is all part of a well-written, and conspicuously publicized, script. The only people who can comprehend it are the ones like us who can take a step back and gauge the long-term change to society, and humanity’s reaction to it, that can see how this script spans generations.

      Indeed, the fleecing is on a biblical scale, and the only way that the Book of Revelation can possibly unfold is if there is a wicked world of unwashed and unsaved people who have lost touch with why they are even on this planet. Once the plebes forget the God of their fathers, they can finally be subdued. The West has been conquered, because they left their first love, Jesus Christ.

      I feel exceptionally bad for the younger folk who have uncovered what this blog enumerates, yet are finding difficult to blend in and make money on their own terms. These people have been priced out of everything, and the synagogue of Satan has made sure that the Gens Y and Z are pummeled financially.

      Okay, my dire predictions two-three weeks ago were predicated on the Fed responding to the inflation that these globalists intentionally created by hiking rates and getting religion in tamping inflation. Of course, the type of inflation that the world is struggling with cannot be alleviated with central bank intervention – unless of course, they react like the Volcker Fed of the late 70s-early 80s and hiked until everything, including gold and silver, was beaten down.

      But based on the latest FOMC meeting and pronouncements, the Fed and ECB do not currently have the desire to really address inflation with aggressively hawkish policy moves.

      Thus, the Fed may raise rates 3-4 times this year, but it won’t matter, and real bond yields will still continue to remain deeply negative. The central banks don’t seem to care, and thus, I see the pullback as just providing more fuel to power the markets higher.

      I suspect that eventually the central banks will have to respond as the bottom 80% are getting killed, and all the propaganda articles from Arlington and McLean, VA won’t be able to assuage the concerns of the unwashed plebes.

      I would just keep what you have for now. if the Fed really does wish to respond to higher price inflation, I would stand back. We could see a scenario where the Fed, ECB, etc. says they have had enough.

      We are not there yet. But what is good for us is that we can throw all the economic analysis out the window and just interpret Fed action. So far, it’s still blue skies. I thought the Fed would have tried harder by now, but it is more concerned about supporting asset prices.

      The reason why there was the collapse of 2008 with sovereign borrowing capabilities placed into doubt was because the collapse in asset prices greatly reduced the amount of available collateral that could be used to finance govt borrowing.

      Even if the Fed and ECB decide to continue tightening while reducing their balance sheets, we are now left with massively higher asset prices. These high asset prices also help to facilitate sovereign borrowing. If the asset markets crater, we could see problems.

      Yes, higher asset prices work to consolidate the wealth and power of the globe, but they also keep the governments in business. It is not just conspiracy theory that the central banks support asset prices. They need to in the absence of active QE.

      Keep what you have though I haven’t been a fan of debt for some time. Real yields are way too negative and any shock to the debt markets could leave investors with massive cap losses.

  4. Millennials lead shift away from organized religion as pandemic tests Americans’ faith -CNBC

    It’s no coincidence that the world falls apart as the people walk away from trying to find God. Do you blame these people from walking away when all they see is a bunch of compliant limp-wrists in the pulpits out there chasing ghosts and being just as scared by the COVID scam as the congregations?

    A true man of faith should be warning his flock to not get jabbed and to resist the techno tyranny. The Zionist preachers spend more time worshiping the synagogue of Satan than trying to help their congregations overcome the last days adversary.

    The one primary aspect about how the Great unwashed have walked away from caring about finding God is that these people are easily fleeced. These are the people that look to the government for answers. And you and I know what happens when the government intervenes. The adversary wins and gets richer. The adversary owns the income generating assets. We need to own the income generating assets, so we can overcome the massive negative externalities caused by the social largesse that is demanded by the great masses of the willfully ignorant unwashed. They prefer to be fleeced.

    The choice is simple; people must either accept the tenets of the Bible and scripture, or set themselves up to be fleeced and be duped by our adversary. There are no exceptions to this.

    Remember that Horace Greeley quote;

    “It is impossible to enslave, mentally or socially, a bible-reading people. The principles of the bible are the groundwork of human freedom.”

    While Greeley wasn’t a fan of the Bible, he knew what the Bible meant to human freedom.

  5. If you are looking for investment opportunities in this still overpriced stock market then you may want to consider shares in funeral homes. If you have any shares in Life Insurance companies I would sell them NOW. If you are really bold then sell the Life Insurance companies short. The Covid Clot Shots are starting to take a toll.

    I usually take Zero Hedge with a grain of salt but some of their articles do make sense in the truth world.

    1. Interesting analysis. Look at how sci and csv have done already. Wow. I remember when they were virtually penny stocks. I should have put my money where my mouth was and bought these two.

      I would not be investing in any insurance company. I am seeing a lot more accidents on the highways. People are getting sicker and passing out while driving. No life nor P/C insurers.

    2. To your point, I’m investing in my skills as a pianist and organist and already have my first funeral gig booked. Things are about to get busy around here.

  6. Chris, is it right to say that the higher the level of socialism/marxist-leninism in a country, the lower the cap rate is for residential real estate? So in theory the way forward is to reverse such level. Just need to figure just how to do this.

    1. You got it. Social largesse in any form always comes with a high price and is never free, but the costs cannot be as easily quantified as the benefits. Only moral people knew otherwise. Amoral people seek net negative programs like social largesse, as well as other concepts like gambling and recreational drug use.

      When a society has become demoralized, they can be easily given over to the concepts of socialism. Those who promote social largesse can easily quantify the direct benefits (e.g. free medical care, tuition, etc.), but will never discuss the massive indirect negative externalities, as well as the direct costs in higher taxes.

      As recently as the late 80s, the Economics text books I read viewed socialism, casinos, and marijuana drug consumption as coming with huge negative externalities. Namely, these ideas were seen as coming with huge costs to society.

      What were these costs? Negative reinforcement of work ethic, encouragement of family breakups, higher crime rates, higher rates of depression, alcoholism, suicide, bankruptcy, etc. It’s not PC to discuss these topics anymore.

      With regards to housing, it’s a straightforward process to see if you are correct. I provide you a link to a survey I posted regarding house prices as a multiple of household income.

      You can see that there is a strong positive correlation between nations and their level of socialist proclivities with their house prices to income multiples. House prices in socialist countries get bid up higher and the residents take on more debt as a percent of income to afford these things.

      It seems the less social largesse, the more affordable the housing. The US has traditionally been freer and the citizens have less of a safety net. On the other end, Marxist nations have wildly unaffordable housing prices.

      We can even break this down in the US by city. The more blue the states, the higher the house prices. Look at the chart that breaks down this multiple by city.

      The correlation is highly positive, and thus, is strong enough to conclude this.

      Generally speaking, the higher the price to income multiple, the lower the cap rate is going to be.

    1. I watched the video. The Metaverse is a clearly satanic design to bring the worst out of people. It is designed to encourage people to live out their most lustful, sordid fantasies without facing consequences. Keep kids off Metaverse if you can.

      Just beware that God sees all. Wherever sins are committed be it in dreams, Metaverse, or the real world will have to be answered for on judgment day. A sin is a sin. The Metaverse sins will have more delayed consequences but they will show up.

      1. People have been killing each other in FPS games for years. What’s the big deal?

        Oh I get it, because they are telling us it’s a big deal and you need to treat their crappy fake world with respect. Personally I’d like to go in there and build a nuke and kill everyone’s avatars. That would be funny. Imagine all the whining. I’d say it’s all fake, go do something else with real people.

        But then I’d probably end up in prison for “cyber terrorism”. Idiots will treat that crap as more real than the real world. In a way it would be – at least it would have rules that make sense. The real world doesn’t have that anymore.

        1. It’s funny, most people’s lives are already a virtual reality. Virtual reality Bitcoin and virtual reality metaverse real estate. Their friendships are also a virtual reality. Soon they will plug in to the matrix to get their daily reaffirmation and fix. Just like a reader posted a comment regarding virtual reality Church.

    2. It’s funny how the media now talks about the “Metaverse” after Facebook changed its name and started promoting the idea of a “metaverse.” For instance, articles about Microsoft buying Activision was described as a “metaverse play” even though it was entirely about gaming. None of those companies do anything with virtual reality or “metaverse.”

      I think Facebook is a very important company to the SoS. That could be why the media is desperate to hype up the metaverse, which is almost certainly doomed because virtual reality is boring.

      Facebook’s secret logo is the Star of Remphan/Moloch. Classic SoS deception, where only insider employees will know about it. The real logo is literally on the inside.

  7. It sure is nice to be able to collect $2,300 monthly rent on a $440K house. In my area the rent is more like $4,300 / month on a ~$1M house, which brings the cap rate down to ~4%, and this would be before the property maintenance expenses of, say, 1% a year (though IRS estimates it at 3%, giving us a 30 year depreciation schedule). At this point we are down to 3% return on that $1M house, assuming the rental does not carry any financing. That 3% return is suddenly not that far off from some 2% dividend yielding stock, both the rental and the dividend stock carrying about the same downside risk in the unfortunate event when things are finally allowed to go south, yet the dividend stock does not come with those pesky renters attached.

    It is all fun and games for as long as TPTB keep the market trending up. Considering they have been able to keep it this way since 2008, it is definitely possible they could keep this charade going for a few more years. It should also be rather obvious that this charade will not be maintained indefinitely, though I can see that the absolute majority of people are now counting on this exact outcome.

    1. It”s 3,200 on a 440k home. Post covid has pushed up single family detached house rents. The people are so scared of covid they bid up rents on the houses, while condos move up slower.

      Zillow says $3,200. I rented it for $2,900. The old tenant was paying $1,500 as it was in bad shape. Still netting a solid $2,250 a month. The townhome where I live in VA is only 500k and the rent is less at say $2,500. It all depends on the area.

      The cap rates in many areas of the US are so much higher. I left the NY area as cap rates were 3% or lower after property taxes were considered. That’s the rate in most of Canada.

      Now employment data looks like a home run, so why the FED has not been more vigilant looks even more stark.

      If the Fed had access to all of last year’s BLS revisions sooner, its hands would have definitely been tied. Perhaps intentionally? Now it’s even more obvious that the Fed is behind the curve of the curve.

      1. Well I’ve been over this in the previous posts but as to your “why the Fed has not been more vigilant”… the ECB is even more flagrant in this regard.

        The answer to your question is, in my opinion, that their only mission is to buy up as much of sovereign debt as possible, as collateral for their new CBDC, before the thing implodes.

        I worked at the central bank before actually, and I can tell you that most of them are completely clueless (you don’t need to have worked there to know that, but ok I experienced first hand). So knowing them, I would think they are not smart or brazen or wicked enough to do that. But I am sure they receive (at the top) excellent guidance from the synagogue’s finest. So I am sure they will plunge is into hell with the best intentions of “stimulating the economy”.

        I am telling you these people are clueless twats.

        1. The top echelons prefers people who don’t ask questions. Look at Biden, Trudeau, Johnson et al. Dummies don’t ask questions and make for perfect stooges.

  8. Despite the ECB contemplating overnight lending rate hikes and a cut to its balance sheet, it still is not enough.

    My one “hanging chad” concern is simple. The central banks around the world refuse to formally acknowledge how horrible inflation has been and how bad it will remain for the bottom 80 to 90% of the human population. They may pay lip service to it, but their actions belie their rhetoric.

    My one concern is that after a year or two of this, the central banks may act in such a fashion as to drive interest rates on the overnight into the stratosphere like the Paul Volcker Fed in 1979 – 1981.

    Imagine the bloodshed. Also, imagine how this will impact the ability of the nation states to continue borrowing according to the script of quantitative easing.

    No one major Central Bank has acted in any preemptive fashion, and this has allowed a dumpster fire to start burning the buildings around it. What started as a fire that could have been put out with a fire extinguisher has now spread into a five alarm full blaze that is taking down a whole city block.

    There are no mistakes here. The worst part is that the economic numbers continue to roll over and last quarter’s GDP was the high watermark for this cycle.

    1. Where are you going to get your tenants who pay this kind of rent once the population control kicks in? Not to mention the excess construction vis a vis population growth going on already. Or do you think the injection is perfectly harmless? Not to mention half the US is now being educated to be snowflake gender professors, so the population that can afford such rents… you know I do feel you aren’t taking into account the bear case here. You do need someone to come along and pay those high rents to justify these metrics, and it’s not a given.

      Immigrants are a deflationary force, especially on labour earnings on the low end of the market. You think someone mowing lawns is able to afford a $1200 rental when competing with every other wetback?

      Idk. Maybe you are right maybe not, but let’s also highlight the demographics and debt bubble which bakes deflation into the cake. I would not be optimistic over further rent increases.

      Child tax credit died with BBB as well by the way, huge deflationary force. Let’s see coming months how that impacts price development.

      1. Why would immigration pose as a deflationary force? It clearly has been driving down the wage base for 40 years, and yet housing costs continue to spiral higher. If immigration poses as a deflationary force, why is inflation rising so much? Prices should be falling.

        Even if immigration lowers the wage base, it overwhelms demand and drives up the costs for everyone.

        What I really love about open borders is that the dumbed down immoral plebes turn to government for the answer and it responds with amazing social largess that boosts my profits. The liberals vote for all sorts of racial and social justice crap that really only enslaves the people while empowering the landlord and wealthy.

        By function, government intervention of any sort distorts the demand/supply equilibrium.

        With respect to housing; on one hand, government interference restricts supply as it becomes more costly to produce and manufacture housing. Plus, those who receive social benefits and preferential tax treatment are less likely to sell. In other words, real estate holders and renters will overvalue the prices and cost of their assets and leases.

        On the other hand, government intervention through social largesse stimulates demand much further beyond its natural state and is basically there to mask inflation.

        Social benefit recipients run the entire spectrum. Social benefits include those who receive subsidized mortgages through Fannie Mae, Freddie Mac, or Ginnie Mae. If the government didn’t intervene in the mortgage market, mortgages would be much more difficult to come by and rates would be higher.

        Of course, social largesse can also include housing vouchers and rent subsidies. Furthermore, social largesse can also include the vast number of tax benefits that accrue to owners of real estate.

        Thus, social largesse beneficiaries will always undervalue the costs of their demand. It really is double plus good for those who own the income generating assets.

        I love government intervention, and for those who understand how the system is rigged against the bottom 90%, you should, too.

        The people can be getting fired and dropping dead in the streets, but there will never be enough places to stuff them all.

        1. Thank you for your response. I agree with your fundamental views but not with your application of them, and I think the thing you are missing here is a new monetary innovation called CBDC.

          CBDC will allow them to knock over the debt bubble, expropriate everyone, and implement a temple/land money system in a similar fashion to the money changers that were cast from the Temple by Jesus.

          This new monetary innovation will force the plebes (which includes the top 10% by the way, it only excludes the top 0.01% in wealth and perhaps the top 2-3% in powerful/cushy jobs at the Temple) to lose everything, as current debt burdens are unpayable without massive inflation.

          You are betting on that massive inflation to occur. I am, however, of the opinion that CBDC will allow them to take everything from you and I wish that you may be spared such a fate. It will depend on your leverage ratio, but in my scenario even with a LTV of 30% you will be wiped out if you do not have the cashflow (from say selling labour or owning a real business) to cover.

          Take into account the scenario that your tenants may only be able to pay you in digital dollars, not in current dollars.

          Look into the difference between base money (cash/central bank reserves) and commercial bank money (deposits). Commercial bank money may become extremely scarce in a scenario like this.

          You are counting, like many people with some knowledge about how the system operates, on the idea that the government controls its creditors and can bully them around. It does not. Creditors control the government. When we talk about “central bank independence”, it is the central bank which allows the government to appear (if not be) independent of it, and not the other way around as many seem to think.

          You can approach the problem game theoretically. Creditor is in no way obliged to keep funding government entitlement spending, whereas government needs some way to prevent Shaniqua the teen mom from becoming antagonistic by the tens of millions at a time. The way this will be achieved will not be through the creditor being dragged along, rather they will give Shaniqua a worthless consumption-coin and that’ll be the end of your version of government largesse.

          Well, this was just a short unstructed rant. I hope that, if you do not agree with me, at least you will watch out for the scenario I described here.

          1. We are already in the satanic and wicked land of money changers, and any digital currency is just a red herring. We have been in the land of the money changers since the synagogue of Satan established their Federal Reserve in 1913.

            I take a purely pragmatic approach to investing, but I do have an advanced background in the field of economics, and if I see the tables turning, I will sell my real estate to the unwashed who will eagerly grab it all up.

            I don’t have to wait for the inflation to appear. Just take a look at the Case Shiller index and look at how rents have gone in the past 10 to 15 years. I’ve already benefited from it. Everything else is just gravy.

            The creditor, the Federal Reserve, has already conquered the borrower, the government. It was a gradual process, but by the time World War II hit, the United States was already just a golem of the synagogue of Satan. If the creditor stopped lending now, it would get the blame.

            I get your frustration. But there’s nothing we can do to change the system, and I can paint a scenario via Atlas Shrugged or Zero Hedge, but that is the talk of pure fantasy.

            1. Very well. Like I said I agree with most of your views. Just be aware of the possible deflationary outcome and the role of CBDC. In my opinion the synagogue of Satan has a trick up its sleeve.

              Nobody on ZH is going into the technicals of CBDC to be honest.

              One thing that has already been stated by the ECB is that exchange of digital euro and current euro (i.e. bank deposit) at par is not feasible. In other words, one digital euro is probably worth much less than a current deposit euro, but that is a speculation. It does not have to be the same way in the US.

        2. By the way I think you could be nicer about Shaniqua and the unwashed plebes in general. The way you talk about them almost reads like usury, but I am not one to judge another.

          1. They deserve it, besides you are using the derogatory description of a racial inference. This has nothing to do with race and all to do with the wickedness and slothfulness of humanity. They get the government they choose. They like this government, I only respond accordingly.

            The Bible says there needs to be two willing parties in a deception; the deceivor and the deceivee, and in the eyes of God there is no difference.

            If you wonder why the world is a toilet bowl you can thank your fellow Laodicean Christian, who worships our adversary, the synagogue of Satan. You can also thank all those who say “love is Love is love.”

            Personally, the older I get the more disgusted I become of the reprobate degenerates I have to encounter.

            Should I dance and tell you how wonderful people are? Should I have pity on the willfully ignorant? I’ll let your Laodicean pastor say that. If you knew what I knew, you wouldn’t be so forgiving as these willfully ignorant plebes are the ones that are causing such heartache and difficulties for the remnant. And if you told these willfully ignorant plebes of their condition they’ll throw you in the ditch with them.

            1. I have an unfortunate habit of apparent racism but I mean it in jest. It’s more acceptable where I am from (to the people I converse with).

              Afraid I do not understand “love is Love is love.”, maybe you could explain that?

              And no, you do not have to tell me how wonderful people are. I share your views, I was just trying to trigger the exact response you gave and I thank you for it.

              But will you agree with me that these people are not innately bad yet they have been corrupted?

              I’m well aware of the impact they have as my own life has not been pleasant at their hands. With the help of the synagogue of Satan they have turned everything into a massive hysterical debt ponzi (therefore also caveat emptor with the real estate), and so priced my generation straight out of the market entirely. I can do nothing with my life, even though I have a very good income on paper (in a distributional sense, top 20% of the population, yet even a modest house is unaffordable).

              I’m not poor, but very tired of, as you put it, encountering reprobate degenerates. And also, due to a bit of generational difference between us, being completely priced out of the debt-based market. This is, however, a problem that the willfully ignorant share with me and they are calling for a solution…. The solution, however, will be yet more abuse and cause more difficulties for, as you call it, the remnant, unless I manage to escape in the skirmish.

              So yes, I want this thing to crumble and die. And I want all these idiot boomers with their real estate portfolios of a few houses and massively overpriced stocks and bankrup pension schemes to lose everything. Every last cent. And then the government can implement communism with a UBI on their asses for all I care, as long as I may escape and live my live in some peace.

              1. I get it. I appreciate your posts. It lends to a lively discussion. For every person like you there are 50 others who read, but don’t post anything.

                What I do find sad is that 95% of my rental applicants are single and most have children, either out of wedlock or from a prior marriage.

                Broken homes are the most important demographic aspect driving up house prices. One family becomes two. One family wage earner, 50 years ago, becomes two. Women entering the work force drives down wages while breaking up homes. Broken hopes, families, and dreams drives up real estate prices on a secular level.

                I doubt I would have made it if I grew up today. I would have fallen through the cracks and would have been drugged up in school and have social services intervening.

                Regardless, I used to ask God when I was yoinger why things were so much different than in the past. He showed me, and he showed me a vision of hell, the rightful place where I belonged. He told me that the Bible was the only source to find the truth. That was December 8, 2003.

                I rented a one bedroom apartment while I built up my real estate holdings. I rented dumps until my mid 40s.

                1. Thank you for sharing that. I am early thirties, and I turned my life around somewhat, graduated uni cum laude a few years ago and now work at a bank (i.e. the Temple).

                  I also asked God for help. I prayed at the little altars that you can find on the hiking routes in my home province, which I had to leave when I was young because there is little work anymore there. And He showed me a recurring vision for 2 weeks of a great tsunami. This occurred during the GME squeeze. That event gripped me hard. I was in sick leave for a while after that because I could not handle the stress of it. It literally blew out my mind. That, and the realization that basically my life was over because I saw for the first time clearly (and long before I found your site a few weeks ago) the (at the time contours of) our adversary. Really pulled back the cover on just how degenerate the whole thing had become, and just how massive as well.

                  I’m glad to know that I am not the only one who sees the adversary. And I do feel somewhat encouraged by the fact that, at least here in Europe, there seems to be a small but growing group of people who also see it (although they are uninformed and stupid, to the point of pure naivete, and so I do not have high hopes). Perhaps if I can

                  You know each generation is just a dumber iteration of the last these days. Where the boomer mantra used to be “buy and hold” we just say “HODL!”. It’s just beyond retarded.

                  I have yet to find the focus and time to study the bible, but I do intend to.

                  Before all that, I was an atheist. I even laughed at people who believe in God. I still can hardly believe that I am not an atheist, to be honest. It really does feel in hindsight as though I was demonically possessed (pride, spite, greed, and lust primarily), and studying what little I have at this point of the bible has helped me enormously in expelling these demons.

                  We do live in interesting times really.

                2. I would try to read the Bible. I like the Gospel of John first. Try it. I was blasted all at once. I couldn’t sleep for close to six weeks. I read and studied the Bible and listened to shortwave all day long for a good 2-3 years. Then as I became better equipped to handle things, I realized that the world was not going to end and that we needed to continue living. I am so grateful for my talents. I can see certains things and I know how money works, etc. This allows me to spend most of my time thinking about the world, the adversary, our condition, and scripture. It just feels right to me. I pray a lot now and am very very grateful for how my life has turned out.

                  I am sorry if I come across as callous. i am not a pastor or teacher. I guess I would be considered a prophet if I were in the church, and prophets are not meant to be a bunch of nice guys. Anyway, I see things differently and I can get very impatient with people. I know what works and what doesn’t. I see how our adversary has torn apart families and ruined the church from within. For instance, it saddens me to see how many well meaning people worship our adversary.

                  I can come across as intolerant, too. But ultimately, I am tired of the sinning and the way people are so misguided on the reason we even exist. I get frustrated, which is why I have my site. I just hope to help a few people. It’s way too late to turn things back. since I know what needs to be done, and that is now impossible. God is gathering a few of his people for the final rounds, and I was hoping to do my small part.

                  By the way, hell is real, and I do not want to go there.

                3. Wow Chris,
                  You had an amazing “Damascus ” moment on December 8, 2003.
                  My turn towards God started in May of 1994 when I questioned physical existence (i.e. existentialism). I felt there has to be a greater meaning to life than just our physical existence. It was around that time that I was guided to a book by Betty Eadie ” Embraced By The Light” . This was a book about a very vivid and unique near death encounter with Jesus Christ. After reading this book I really had a religious awakening experience as to what Jesus Christ is all about.
                  That was when I read the whole bible for the first time.
                  Just be aware that Satan uses your spiritual curiosity to lead you away from God such as diverting your curiosity to new age spirituality such as Wicca, and Eastern religions.

                4. My experience was a lot more grim, sudden, and unexpected. I remember it so vividly. Someone or something intervened directly and expressly. Whether it was God, an angel or Jesus, I do not know. Maybe I will talk about it in a podcast. I know someone asked me about doing a podcast on how to adjust to the new life. I haven’t done podcasts in a while. They are actually easier to do, but a lot gets lost when stuff isn’t written down.

                  It seems Lientje is on the right path to change. It takes adversity and/or a bottoming out somewhere to provide the catalyst for that change. Many are unable to adjust; a few can make the transition. I think it depends on the talents a person possesses. I do pray for those who are seeking the truth. unfortunately, they are few and far between. Imagine belonging to a church and discovering by personal revelation that your church’s doctrine was lukewarm worldly stuff, or hard core Zionist. The will to change and separate can be very difficult.

                  The further we move forward in this timeline, the more catastrophic the epiphany must be for a person to be shaken out of the slumber. if a person has gone on this far into the timeline without experiencing an “ah ha” moment, I worry they are too far gone to be salvaged. Any sea change experience from now until the end would have to be so incredible that virtually all people, save a few, would not be able to survive it without having a mental breakdown. The pain would be so extreme that most will revert back into the worldly fold and live the Big Lie, even if it means losing the soul.

                5. God sometimes to some people shows visions of satan and hell to get them to change direction to the Lord’s ways. God lets them see these awful visions as a method of tough love to get people to change their ways and/ or to enhance their spiritual walk with God.

              2. DD, You wrote some very wise things here. I admire your wisdom. I pray things work out well for you.

              3. Words of true wisdom DD. It makes me glad that a young person such as yourself is able to see things as they are. I would be a lot happier if my daughters could be as you.

              4. DD — do you remember more specifics about this tsunami? The location, for example.

                As for me — it could had gone either way. I was truth seeking. It first lead me to new age, but thank God I only dipped my toes in it; the water didn’t feel right. After that I took the contra and opened the Bible; because the people running the show have one thing in common. Refusal or hatred for our Lord Jesus Christ. How can one person hate something that is supposedly make believe? I started at Matthew, and finished New Testament. I’m reading Old Testament right now. Jacob God loved. Jacob’s favorite son was Joseph. I really liked Joseph and how he resisted sin. He said – how can I do something so wicked to God (a woman that was married wanted to sleep with, and tried multiple times to seduce him into sleeping with her). Through his bloodline I think Jesus Christ was born. Might be why I love nature and animals so much. Not so much people. People are full of sin. Of course, it doesn’t apply to all people. But most are either cold or lukewarm, unfortunately.

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