A dying dollar; How the alt-finance “gurus” got it right, but were still wrong

The dying dollar and asset prices

I just wish to provide this snapshot of what a dying dollar looks when it comes to everyday life.  The prices of residential real estate in the United States were an absolute bargain in 2015, with the price to household income ratio at a rock-bottom ratio of 2.62. Look at the first table to see how well the dumb Americans had it back then. What a buyer’s paradise it was as the dollar was much more steeply entrenched in the global marketplace. Of course, the dummies and charlatans in the alt-media were crying that the housing markets were going to collapse and that residential real estate was a sucker’s bet.

Click on the headings to sort

Let’s fast forward to the beginning of 2022; this ratio has risen to 3.96, and has risen even further since.

Click on the headings to sort

The stupid Americans and alt-media dummies never realized how well they had it and still do. As the dollar has been dying, the prices of all assets are rising. Just wait until the Fed is required to reverse course. Imagine life in America as this price to income ratio climbs above five. Ouch. The people will be crying for relief, but the globalized debt-slaves will say that the Americans had it good and that their life burdens are just catching up to the rest of the world.

A year ago, I marveled at how a Ukrainian man on YouTube described his $150,000 condo purchase in unstable Kiev as a good deal. But I wondered how could the average Ukraine resident afford these prices;

Average income per capita:
-Ukraine: $5,010
-United States: $25,332

Americans had it easy. That is now changing. The world is getting rid of their dollars and inflation is raging. Regardless of what the Fed does, inflation will still rage. The Fed is now barking, but it knows it can no longer bite the way it used to. The world has lost confidence in the Fed and in its abilities, and its puppet leaders look like fools; just like the rest of the cast of characters in the toilet bowl they call Washington DC.

And take my word on this one; this was done by design. These monetary authorities have the best pedigrees, with PhDs from the finest schools corrupt money can buy. Any objective observer with an intermediate understanding of Economics could have figured out early on that the misguided fiscal and monetary policies of the covid scam were so ridiculous that only someone with an intent to destroy could have engineered them.

But guess what, while the alt-finance was right in predicting the demise of the dollar-based monetary system, they still got it wrong; wrong on stocks and wrong on housing.

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30 thoughts on “A dying dollar; How the alt-finance “gurus” got it right, but were still wrong

  1. With inflation at a 40-year high, who feels better off today? They do

    https://fortune.com/2022/04/07/inflation-high-who-feels-better-off-workers-prices-us-economy-income-great-resignation-will-johnson/

    More pro-college propaganda. Do not do what this article’s conclusion suggests. The reason why certain households are staying ahead of inflation is because they own the income generating assets. These households will also be more likely to be college-educated.

    The article’s assumptions are total hogwash, and for anyone who relies on its premise, he or she deserves to be a student loan debt slave forever.

  2. I was asked a couple days ago about my thoughts regarding bitcoin, since I have not mentioned it recently.

    I looked at the chart action and sentiment, as well as how the Western governments have been treating btc. and I have some good news;

    I predict btc will largely double in value by the end of 2025 to about $85,000. It could be greater with a spike higher, but the average level should be about that.

    While that sounds like a huge upside, it really isn’t in percent terms. I think the easy money is gone. Of course, war could change btc’s prospects and it could be greater. We could say the same with gold, though btc’s chances for a greater upside are higher.

    1. I was shocked back in 2013 how much the BTC went up. Who would want these internet tokens that nobody could use at any store and that were given away for free over a year ago…. Then a few years later the big spike happened, almost unexplainable. Of course now we know the SOS introduced it and pumped it up to high levels to make it worth something. It wasnt a group of patriotic computer nerds trying to give people an alternative and break away from the system.

      I’m wondering how the new CBDC will effect cryptos especially privacy coins? I asume the States, and the Fed would not want competition with their new digital currency, and would absolutely not want untrackable currency transfers. They may have one last pump to pull people in and cash out. If they want it to go up then it will. If they want to ban it they will.

      So much effort has been made implement BTC and cryptos, makes it very hard to believe they would put a global ban on it. They could implement a conversion policy, for every BTC % people own, would equal a CBDC %.

      It really is a mark of the beast system. We all should know by now how the vaccine agenda ties into it. People will be tracked 24/7, every purchase, and most activity a person performs will be recorded and monitered. So don’t feel bad if you don’t own any crpto or get the fomo if the price goes up. These digital currencies are not your friend.

      1. You raise good points Greg.
        There is a gov’t controlled and issued cybercurrency to be released in Canada in late 2023, as I have read. Whether it will actually be late 2023 or later, I dont know. I dont know about the USA or other western countries but all the west is going in the direction of cybercurrencies. This effort is part of the Great Reset. So, as to your point…..why would I want to own bitcoin or other cryptocurrencies now?

        1. You raise good points Greg.
          There is a gov’t controlled and issued cybercurrency to be released in Canada in late 2023, as I have read. Whether it will actually be late 2023 or later, I dont know. I dont know about the USA or other western countries but all the west is going in the direction of cybercurrencies, I think it is a matter of when. This effort is part of the Great Reset. So, as to your point…..why would I want to own bitcoin or other cryptocurrencies now? As to Chris’s thoughts…..perhaps Bitcoin will double from here into 2025…..but I am cautious here.

  3. A scan of my news app this morning and ALL the biz news on the front page is bearish; bearish on stocks, bearish on the economy, bearish of residential real estate, bearish on everything except cryptos and commodities.

    Hmm… I usually take the contra when it comes to what the hoi polloi consume as news….

  4. I was asked about my thoughts regarding a dying dollar and a dying Western monetary system. Currently there’s no alternative other than assets and things as a store of value. That’s why we see prices rising on everything. Price inflation can be considered a loss of confidence in a single or set of currencies, as well as a change to the dynamic in the supply/demand equation. It’s not like the global investors are running to the yuan. They would be foolish to do so as the CCP has a way of centrally managing circumstances and their economy.

    The loss of faith in this instance is coming from the Westerners themselves and those allied with the West in trade. They see what the Western governments, especially the American government, and monetary authorities have done over the past couple years. The people inside and outside the borders are losing faith in their own system.

  5. The whole world, and America especially, is walking into a buzzsaw and the pastors and preachers are not warning us of the upcoming perils. Even the YouTube and alt-Christian pastors are not equipped to warn. They have all been politically neutered and are self censoring.

    It’s hard not to get anxious and angry at what I see as being so over the top in the set up to catastrophic global war.

    The press by our government to destroy our freedom and liberty is resuming with little letup.

    At least my body inflammation has disappeared. Yay!

    I couldn’t sleep after having some more strange dreams. God is warning me and I am trying to sort all this out.

    1. Thanks. The consumer has been spending everything and will have little left.

      Prices in the grocery store have gone bonkers. Rents have gone bonkers. I cannot believe utility costs. Uber costs to the airport.

      The average person is getting squeezed while he stares at his streaming service programming. In a total theta brain wave state.

      This all could have been avoided. I know covid was a scam, because it was used to reorient and reprogram the global monetary system into purposely blowing it up. The people are walking into a buzz saw.

      Sorry for going off on a tangent…

      Many people don’t even believe nuclear bombs exist. The world is sleep walking with wilful denial right into a buzzsaw.

        1. They get to hold the property, but the government controls it.

          According to statistics Canada, Nova Scotia has about 340,000 single family properties.

          https://oee.nrcan.gc.ca/corporate/statistics/neud/dpa/showTable.cfm?type=CP&sector=res&juris=ns&rn=15&page=0

          I am familiar with Nova Scotia and it’s beautiful place, but these types of taxes will work to destroy their seasonal resort industry.

          The governments in Canada are making some very misguided choices here, and any linear and unilateral action regarding foreign and non-resident ownership will have dramatic ramifications for their economy in the aggregate. Canada will increasingly be viewed as more openly hostile to foreigners and these people will begin to steer away from the country. But elected bureaucrats are unable or unwilling to make these connections.

          1. I think we will get squeezed like that in the US. They will tax us into poverty. Now that real estate is hot, towns are reassessing homes to increase the taxes. My town just added an extra $100k to the assessment of my home. I think it’s ridiculous and plan on fighting it. There is no way to justify an increase like that in one year.

            1. Homeowners are getting doused. Home price increases do not benefit people unless they own more than one property. The only people in real estate who are making out are the investors with rentals. All of these costs just get passed on to the new tenants.

            2. That’s why I like living in a ‘dead’ town. Under the radar. Certainly not a hot market here. A young couple, 2 teachers, bought my Toronto home, in a hot neighbourhood, in 2020. They were shocked the cost of heating it then. Imagine now. City of Toronto property tax, and garbage tax and parking permit tax, water tax. These taxes all crept up since 1995 – water and garbage used to be ‘free’- then $100 a year, now $300 every quarter. Teachers can work anywhere, this move does not make any financial sense to me and I feel sorry for them because they clearly don’t know what is coming. Maybe they can fix up the basement and rent it out. I see people doing that rather than give up their real estate.

            3. This right here! I’m a CA native and see so many people buying into what I perceive as a manufactured propaganda campaign to lure people into other states that are “less liberal” and cheaper. CA is known as the commie state and just about every other left leaning slur you can imagine. I don’t deny CA practically holds the patent on left leaning policy, but as one who has abandoned partisan politics and generally leans conservative, it’s not bad from where I sit. To me this seems foolish to loose the proposition 13 protection that long time CA homeowners enjoy. But prop 13 only works if you have stayed in your home for decades and did not accumulate debt.

              My theory is the “bash CA” propaganda is pandering to the ultra right simply to frustrate them into leaving the state. The home that was locked into a 2% yearly property tax increase for, say, 30 years, suddenly gets re-accessed to a tax rate based on the sales price. And in CA there seems to be no shortage of flurry to drive up the price of housing. That measly 2% yearly tax increase (that I pay) may largely be offset by people leaving the state (or leaving high priced areas of the state) in favor of other states or into lower priced areas of CA with the void being filled by a young couple making $300K yr. To the aging population this real estate windfall sale – and who can qualify for it at that young age – leaves our heads spinning and laughing all the way to the bank as they give CA the middle finger while crossing the border to OR, ID, NV, TX, AZ, etc….

              In Nor Cal, El Dorado County is one popular migration destination for anyone living in the Bay Area. I could sell my condo for low $600K and buy an ADA compliant gated community home in El Dorado Hills for that price. But I see this as relocating to the likes of a prison compound with all the up to date surveillance equipment.

              1. I think many Canadians are looking to move to the USA.
                Small towns with just a Walmart or a gas station that have houses built 70-80 years ago, offer very affordable living. With a commute to a bigger city only an hour or two away. Trailor parks are even increasing the lot rent. A few guys I know sold their big houses and downsized to a trailer park and an old farmhouse fixer upper. Bought a brand new trucks with the profits. If you’re not married with kids why bother living in a big house. The women usually move back in with their parents or in a HUD housing facility and qualify for SNAP benefits, start dating sugar daddies. so they no longer have to work a fulltime job. It’s a race to the bottom where most everyone eventually loses.

                1. A millennial friend of mine talked about how her friends are buying an RV instead of a house, like that was a great thing. Hey, this race to the bottom goes both ways, no shortage of men here looking for a sugar mama. You can cut the desperation with a knife, it’s so thick. All I’ll have to do is tell them that I’m a practising Christian and they will run to the hills.

  6. Canada to Ban Foreigners From Buying Homes as Prices Soar – Bloomberg

    https://www.bloomberg.com/news/articles/2022-04-06/canada-to-ban-some-foreigners-from-buying-homes-as-prices-soar

    Price to household income multiples up north are 7.5x nationwide, up from 5.5x in 2015.

    Home prices in Canada have soared more than 50% over the past two years. The market saw a record monthly increase in February as buyers acted ahead of rate increases by the Bank of Canada, taking the benchmark price of a home to C$869,300 ($693,000).

    “I don’t think prices are going to fall as a result, though I do think it takes away at least some of the competition in what is the most competitive market in Canadian housing history,” Simeon Papailias, founder of real estate investment firm REC Canada. “I don’t think a two-year band-aid is going to have an impact on what’s a fundamental lack of supply.”

    1. I also don’t think this will be a factor. I am pretty sure that foreigners can still open domestic holding companies here and purchase through those if they want to. There is always a work around and the Feds look like they are doing something.

      Bigger problem is providing national daycare and dental care with a headwind of declining revenues and a 50bps rate increase.

      1. They get free passports. Immigration is rampant. Once they are citizens they can buy 50 houses unseen at a single auction by phone from Shanghai no problem. Well that is how it works in nz.

        1. That’s right. There are loopholes in the proposed Canadian housing regulations wide enough to drive a North American tractor trailer through. I envision Chinese students being paid to shill for foreign deep money interests.

  7. U.S. court reinstates Biden federal employee COVID vaccine mandate

    https://www.reuters.com/world/us/us-court-reinstates-biden-federal-employee-covid-vaccine-mandate-2022-04-07/

    They’re all onboard. All the countries are on the COVID bandwagon and will all be willing participants in the upcoming global war to end all wars.

    Hurry up, Laodicean Christian church. Get your jabs and obey. It’s doubleplusgood to obey Romans 13. Do what the governments say. Don’t disobey. Remember, the old testament prophecies were nailed to a tree. I know this, because pastor Baldwin said so.

    Thank goodness he cleaned my mind of racist and xenophobic thoughts. I felt like Parsons. I am cured and I’ll stick to Proverbs and Psalms.

    1. Land and house prices will definitely continue going up. There’s too much money coming in. Especially if it’s income producing. Back in 2019 it was fairly easy purchasing single family homes for rent. Now it’s pretty much impossible, unless you wish to overpay. 10+ offers come in, and it’s always well above asking.

      In FL an amazing new construction home in a 10,000 sq ft lot about 3 min walk from the beach was sold for $3.20 million in April 2021.

      In April 2022 — the same sized lot right next door was sold for $3.50 million. Just the lot…… no home. They will have to build that themselves.

      These locations can do weekly rentals for $2000 to $4400 a night. And they get completely booked. So yea, investors are definitely throwing cash into anything that has the potential to produce income. They know their dollar bills won’t be worth much in the near future. That’s why even with all the bad news in terms of war in Ukraine, and inflation — stocks are resistant and bounce back. It’s very important to have something income producing right now. If there’s a famine and hyper inflation in the near future, then that income producing property you have will help pay for your groceries; and hopefully it leaves you with a good surplus to lift others up.

      1. You got it. That is absolutely correct. Landlords just keep raising rents and the reason why many rent control regulations and laws aren’t going to work is that landlords have just decided to keep properties vacant or they turn them over as short-term rentals; just like in the instance you mentioned. I know of investors now that aren’t even renting out their properties. They don’t want to deal with tenants, but they don’t want to sell.

        The whole rent moratorium and covid scam soured landlords to the point that they’re willing to hold back properties rather than risk renting them out to some loser deadbeat. They turn them into nightly rentals. Forget Joe six pack and a long-term lease.

        Many landlords see exactly what I’m seeing; they see a nation overwhelmed by non English speaking immigrants who are overwhelming the demand equation and these landlords know that there are just not enough rentals in there.

        All I can tell you is based on my anecdotal observation is that we are being totally lied to regarding the amount of immigration into the Western countries. Our governments are completely fabricating any statistics they publish.

        And you’re right about stocks as well. Besides, as the years have gone on, a greater percentage and concentration of the stock market wealth has gone into the top few percent. 90% of the stock market wealth now rests with the top 10% now, and the top 1% own a big chunk of that. These folk tend to hold.

        1. The number of houses they are building in nz is astonishing. You drive through the new suburbs that weren’t there two years ago and it seems to be mostly Indians living there.

          The govt says immigration has nothing to do with house prices, and people just repeat it to sound clever but everyone knows immigrants are driving up the prices. White flight to former backwaters is rampant too.

          The vx hasn’t wiped out enough people to make a difference yet, but cracks are appearing. More property ads have asking prices now instead of “offers over X please”. More experts are predicting a slowdown. Real estate agents are saying its much harder to sell lately. Reports say last October 5% of realtors had buyers holding off for a drop; now its 65% of realtors.

          Maybe we’ll see something happen. Maybe NZ is slightly different to the US. Prices here are very high and we don’t have as much money as Americans. Things cost more too. Petrol was recently $3.30NZD per liter. That’s about $8-9USD per US gallon I think. It’s dropped to $2.87 because the govt reduced tax, but that’s only temporary.

          One fuel company exec said prices would skyrocket so people lined up to buy as much as they could before the price rise. The next day the price dropped by a lot. We are tired of being tricked all the time. I have noticed the roads are falling to bits. Far less maintenance has been done the last couple of years.

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