An email response: While many are being left behind, I am very bullish on America’s economic prospects

This high inflation is also a natural response to the repurposing of the American economy. While the United States can no longer export inflation while importing deflation, those who can recognize the inevitable outcome will prosper at the expense of those who cannot. For most people, including those who subscribe to the tenets of the alt-financial media, they will be unable to figure out and adjust to the massive secular changes currently taking place.

Chris Pirnak

Yes, you read that correctly; I am very bullish on America’s economic prospects

America is still an economic powerhouse, and thanks to the post-covid world, it is in the process of becoming even greater

Corporate managers know the obvious; the U.S. is the most stable country in the post-covid world for supply chain and manufacturing needs

The past few years of supply-chain turmoil, triggered by pandemic and war, have convinced corporate leaders that the U.S. is a stable, convenient, and well-connected place to make or source their products. That could mean rethinking the prospects for U.S. supply-chain players.

Last month, Morgan Stanley surveyed more than 400 executives of large corporations from the U.S. to Germany to Japan. They said the most important factor in supply-chain decisions is geopolitical stability, followed by skilled labor, physical infrastructure, and a developed supply-chain ecosystem. On nearly every count, the U.S. outranked Europe, China, and Mexico.

Some 18% of the companies planned to significantly expand U.S. manufacturing in the next 12 months, while 36% anticipated doing so within three years. More than 40% of the U.S. companies were taking steps to “onshore” supply chains. “This could put the U.S. as a net beneficiary of evolving supply-chain strategies,” wrote Morgan Stanley analyst Ravi Shanker in a note this past week.

Those plans would benefit North American freight transport.

How Bringing Supply Chains Back to the U.S. Could Sharpen the Race Between Trucks and Trains – Barron’s, June 17th

A secular trend is clearly evident; manufacturing firms know what we already know and the supply chain is coming back home.  While covid and war have most people claiming the U.S. is near its end as an empire, I differ on this assessment. There is a tremendous upshot from all these global crises, whether manufactured or not, that is developing on a large scale. Many firms have embarked on a reassessment of their supply chain and manufacturing requirements and have deemed many aspects of their processes to be too valuable to leave up to the whims of the global marketplace.

This is only a natural outcome and I think many people who are bearish on domestic developments are going to be caught on the wrong side once again. This is why we’re definitely seeing actual data supporting the anecdotal observations; manufacturing jobs are increasing in substantial numbers after decades of gradual declines. This trend has definitely reversed and I look for manufacturing capacity to continue increasing here in the states.

Unlike China and India, the United States population is expected to continue to grow throughout the century with no foreseeable decline. By 2067, the U.S. population is expected to surpass 400 million people.

Top 10 Countries with the Highest Oil Production (barrels per day)

  1. United States – 11,567,000
  2. Russia – 10,503,000
  3. Saudi Arabia – 10,225,000
  4. Canada – 4,656,000
  5. Iraq – 4,260,000
  6. China – 3,969,000
  7. United Arab Emirates – 2,954,000
  8. Brazil – 2,852,000
  9. Kuwait – 2,610,000
  10. Iran – 2,546,000

Top 10 Countries that Produce the Most Natural Gas (Cubic Meters, 2020):

  1. United States — 914.6 billion
  2. Russia — 638.5 billion
  3. Iran — 250.8 billion
  4. China — 194 billion
  5. Qatar — 171.3 billion
  6. Canada — 165.2 billion
  7. Australia — 142.5 billion
  8. Saudi Arabia — 112.1 billion
  9. Norway — 111.5 billion
  10. Algeria — 81.5 billion
The USDX is backing up this outcome; Biden may look like a fool, but the post-covid world is benefiting America more than any other nation. America is quickly becoming an energy, foodstuffs, and manufacturing powerhouse once again

Don’t be left behind by the calls of collapse; America is emerging in the post-covid world

Look at the energy powerhouse that America has become. The United States also has the capability to become the largest food basket in the world. It takes about a week to drive across the United States on interstate highways, and for most of it, all I see is vacant land that could be farmed; right next to the major transportation thoroughfares. I will never be demoralized by my adversary and the alt-media into believing the lies of our adversary, including the disingenuous arguments of with its prediction of a Western economic collapse. China will collapse long before America does.

Russia and China spent the past couple generations bleeding the U.S. dry, so that they could build up their economies, but the freedoms of America are of paramount importance here; I can own firearms and have freedoms that 99% of the rest of humanity could have only dreamed of having.

The engineers and entrepreneurs in the United States have developed technologies that have turned America and Canada into self-sovereign energy powerhouses. The demoralization campaigns against the vast vast majority of America’s people have been highly effective, and while our ways of life are forever being altered adversely, the plebes only give up their rights that they willingly relinquish.

Property and business owners, landlords, entrepreneurs, investors, and those who possess key talents will continue to clean up at the expense of those who are unable or who refuse to adjust to the new world order. Don’t be misguided by the novices who claim domestic residential real estate prices are irrational; residential real estate prices in many areas of America have a basis in reality as long as rents remain elevated.

There is a lot of sanity left when it comes to determining the prices of income-generating assets; I view the cassandra calls and the cryptocurrency sphere as insane. What sane person would rather own a bunch of electronic digits instead of owning properties or businesses? Even if cryptos prevail in some way, do you know the outcome for certain? How do you know your holdings will win out?

This high inflation is also a natural response to the repurposing of the American economy. While the United States can no longer export inflation while importing deflation, those who can recognize the inevitable outcome will prosper at the expense of those who cannot. For most people, including those who subscribe to the tenets of the alt-financial media, they will be unable to figure out and adjust to the massive secular changes currently taking place.

Related Posts

68 thoughts on “An email response: While many are being left behind, I am very bullish on America’s economic prospects

  1. Great post, Chris. YES! This is ours to win. It starts with each of us individually, and spreads very organically. Jesus is the path. I appreciate your work – please keep it up.

  2. Chris,
    I agree with your assessment and your commentary. You are so realistic and cut through all the hype. I think Americans still have time to make hay and our stock market is NOT dead yet.
    I think the synagogue of satan is sinking and enslaving the rest of the world first. The s of s will come for USA last. Before they do, we still have time to make hay. That’s why I have not cashed everything out of stocks like a few people in my family did. The ones that cashed everything out are now poor. However, I took a little bit off the table to raise cash for future investment opportunities. I would definitely stick with income producing assets such as stocks and rental real estate. Cryptos, on the other hand, are a black hole except maybe bitcoin. Most cryptos are not income producing and have nothing behind them.

    If the investing world is confusing an unpredictable, then take it to God in prayer. It is only faith in God that helps me stay with seemingly risky assets such as stocks because what good is cash except for future opportunities. I see investing in income producing assets as a means to life not as an end goal. Jesus Christ comes first and investing comes as a necessity to avoid bondage to the satan worshiping employers.

    1. Last weeks huge sell off but as of today they say it’s gonna rally. But wait, what about all that doom n gloom, bitcoin under 10k and those recession statements. Still nothing has changed since 5 days ago, but it’s all better now. Oh it’s market sentiment, ya sure it is!

      Can’t wait until next month for those never ending mass vaccine die off and food shortage alt media stories.

      This month has been a Perfect example of how they are in control.

      1. It can be demoralizing as it’s highly effective against potential resistance. The adversary knows how to accelerate the fleecing via internet algorithms. What took months and years now takes days and weeks…. Must admit though I got beat up on oil this week. 😫😫😫

    2. I think that I am really only renting out my properties, as I will die eventually like everyone else and will have to stand before Jesus and God Almighty.

      He has allowed me to essentially sublet my properties out to others… I just learned of a fellow woman investor who died a couple years ago at 60. I last talked to her in 2018. Now she’s dead and her properties were just put up for sale.

      1. Concerning Russia: the cost of goods is rising, and quality especially food, is decreasing. And, the APR for buying autos, bikes, etc. is around 20%. In Eastern Europe and Balkans, the sales tax is 20%, and in some countries everything is taxed including medicine.
        The import tax (Customs) for private sales (not bulk) is 20% and sales tax is 20%. E.g. a notebook for sale at “X” cost to be imported for private use; add 40% to the mix.

  3. Seems the writer of this article (named at the bottom) has a similar outlook as Chris when it comes to housing. This is a lender in the SF Bay Area and I got on their email list when I applied for a mortgage a while back.

    4 Reasons Not To Fear High Rates, Recessions, & Housing Shortages

    The fast-climbing rates and media rumblings continue to spook buyers – so I am going to beat the “ARM/RECESSION/HOUSING SHORTAGE/REFI” dead horse again – to hopefully alleviate concerns (again).

    Higher Rates Are Opening Up Inventory.
    While overall inventory levels remain near record lows nationwide, we are seeing inventory levels creep up in some markets as a result of higher rates, and that is in turn creating opportunities for buyers who are still in the market.

    ARMs For Lower Rates.
    In this blog from May, I encouraged homebuyers to take Adjustable Rate Mortgages (ARMs) instead of 30-year fixed-rate mortgages because ARM rates are as much as 1% lower and because ARMs are so much safer nowadays.

    Recession Coming.
    In that same blog about ARMs, I reminded readers how likely it is that the U.S. will experience a recession in the next twelve months, and how recessions invariably bring down rates.

    No Cost Refinances/Nobody Will Keep Their Current Loans.
    Because a recession and lower rates are so likely, it is very unlikely that homebuyers getting mortgages today will still have those mortgages 18 months from now (because they will be able to refinance into a lower rate and probably at “no cost” when rates fall). This should significantly mitigate concerns about today’s rates.

    Is there a chance we won’t have a recession? Yes, because consumers are sitting on $2 trillion in savings; the job market is still very tight; and the economy appears to be bustling still in general in many areas, e.g. travel.

    But, the recession indicators seem to be much stronger as pointed out by the likes of Barry Habib and Jeff Snider, both of whom I cite often because of their accuracy when it comes to predictions (I highly recommend following Jeff Snider on Twitter to see his insights). In addition, 77% of CFOs surveyed predict a recession in early 2023. And finally, The University of Michigan Consumer Sentiment Survey hit an all-time record low recently.

    So yes, I think a recession is very likely; that a drop in rates is very likely; and that housing will hold its own, even if it stops appreciating at insane rates (which is probably a good thing).

    No Building + Growing Population = Strong Housing Market EVEN IF RATES ARE AT 6%!

    Every Homebuyer Must See This Chart! (Number of Homes Completed Every Year).

    I could not copy the picture from the email but pretty sure I found the correct chart by searching the title (New privately owned housing units completed: Total Units.)

    In the chart below, you can see that there were about 2.3 million new homes constructed in 1973 – a number we have not seen since.

    This is not that big of a deal until you remember that the entire population of the U.S. was only about 211 million (compared to 332 million now).

    Over the last year, we have built about 1.3 million homes, when, again, the U.S. population was over 330 million!

    From 2010 to 2020, the average number of new homes built was around 1 million per year.

    This is about half the pace of building that we saw from 2000 to 2010.

    But – from 2010 to 2020, America’s adult population grew by 24 million people!

    Why Is Big Money Still Buying Real Estate?

    In this recent YouTube video, Joe Brown of Heresy Financial explains why the big funds are still buying real estate – despite ALL OF THE TALK ABOUT HIGHER RATES CRUSHING THE MARKET.

    Mr. Brown uses the same chart I show above to illuminate this fact: our pace of homebuilding since the 2008 meltdown has not even come close to keeping up with population growth, relative to previous decades.

    And this is why big funds like Goldman Sachs and Fundrise are still buying up entire housing tracts, per Mr. Brown.

    So yes, higher rates will make the market less competitive and hopefully bring down list prices even more. And yes, Fed policy and very low rates have helped to push up prices in the past.

    BUT – the biggest reason so many people remain bullish on housing overall is good ol’ supply and demand.

    Building has been way down while our population has continued to shoot up!

    No Building + Growing Population = Strong Housing Market EVEN IF RATES ARE AT 6%!
    ​​​​​- Jay Voorhees, Founder/Broker of JVM Lending

    1. 1) Demographics are such an amazing factor. The population growth, with the majority of it coming from outside the nation’s borders, is one of three important attributes underpinning the housing market.

      2) Persistent under building of single family housing has contributed to the lack of overall supply. The number of houses that are subtracted each year due to irreparable destruction and obsolescence is now relatively large when compared to the new home sales. It is like a row boat navigating against a swift current.

      3) The massive increases in rents is the most recent change to the dynamic in the housing market, and only ameliorates the bust’s amplitude. The imputed rental amounts for housing stock only bolsters the bullish thesis. This is why the institutionals are buying. Plus, their cost of capital is less than our cost of capital.

  4. A warning to the commodity bulls.

    The DJCI looks very bearish here in the short term. It has fellen out of its daily and weekly trend channels over the past couple days.

    Let’s see what happens with the Fed H.6 announcement.

  5. Why should the US government ever think of defaulting on their UST debt when it can work with the Fed to inflate it away? Let the UST holders get stuck with the bill.

    It’s a clever way to effectively default without anyone ever really picking up on it.

    Washington Post columnist: Americans should ‘stop complaining’ about inflation
    Thomas Barrabi

    Washington Post columnist Michelle Singletary argued Americans’ fears of inflation are overblown.

    The US never has to worry about defaulting on its debt and it can continue to spend trillions on social welfare.

    The average person becomes poorer over time, yet becomes more and more dependent on the government and it’s slave owners.

  6. US LNG Exports To China Plummet By 95%: What You Need To Know
    Benzinga Staff

    •Russian imports have been on the rise since February.
    •Presidents Putin and Xi reaffirm the strengthening Russia-China alliance.

    U.S. exports of liquefied natural gas (LNG) to China between February and April is down by 95% from the same period one year earlier, according to a Wall Street Journal analysis of Chinese government data. At the same time, LNG exports from Russia to China increased by 50% year-over-year for the same period.

    What Happened: U.S. LNG exports to China were a crucial element of the Trump administration’s trade relations with China, and this carried over into the Biden administration.

    Russia’s invasion of Ukraine in February resulted in European countries vowing to halt Russian gas imports, which opened a new export opportunity for U.S. suppliers. But this also sparked a dramatic increase in prices as European countries quickly sought out U.S. LNG.

    The Journal reported that some Chinese firms are still negotiating deals with their U.S. partners. This new seesaw effect could create future problems for U.S. LNG suppliers who were planning multibillion-dollar infrastructure projects on the Gulf Coast that would have resulted in China-bound fuel.

    Nonetheless, Russia’s new isolation from the European economies has resulted in stronger ties with China. Last week, Russian President Vladimir Putin held a lengthy telephone conversation with Chinese President Xi Jinping to reinforce their strengthening alliance.

    The state-run China Daily reported that Xi pledged to “work with Russia to strengthen communications and coordination within important international and regional organizations … this will help promote solidarity and cooperation among emerging market economies and developing countries and promote the development of the international order and global governance in a more just and reasonable direction.”

  7. Q1 current account deficit higher than expected. It shows how weak the rest of the world is compared to the US. If Q2 is anywhere near this, we will definitely be in recession.

    Normally these are dollar bearish numbers, but with relative economic strength domestically and high demand for American energy, the USD should be okay here.

    1. Just goes to show the US economy is the least rotten apple compared to the rest of the world becoming an economic barrel full of totally rotten apples. I would not bet against US industry for now. Be thankful we are living in the good ole USA.

  8. Real Estate Fund Backed By Goldman Sachs Acquires Entire Community Of 146 Single-Family Homes In Jacksonville, FL

    The real estate investment platform Fundrise announced that it recently acquired 146 rental homes in the Treeline Trails community of Jacksonville, Florida. The purchase was made by a joint venture between two Fundrise-sponsored funds, the Fundrise Interval Fund, which was backed by Goldman Sachs Group Inc (NYSE: GS) last year with a $300 million credit facility, and the Growth eREIT VII.

    The joint venture acquired the community for approximately $55.9 million and, according to Fundrise, approximately 90% of the homes were already occupied at the time of acquisition.

    Unlike the Wall Street funds that have been purchasing large portfolios of rental properties throughout the country, the Fundrise Interval Fund was designed for retail investors, allowing non-accredited investors to participate with as little as $10 through a Reg A offering.

  9. Slowly revealing. From transitory inflation to inflation and recession….

    “The events of the last few months around the world have made it more difficult for us to achieve what we want,” Powell continued. “We’ve never said it was going to be easy or straightforward.” The messaging is a notable departure from his stance on March 2, when Powell stated it is “more likely than not that we can achieve what we call a soft landing.” The Fed has already raised rates three times since then, and most recently upped the federal-funds benchmark by 75 basis points in the largest hike since 1994.

  10. I watched an Alex Jones interview with Leo Zagami yesterday. It was a Russia love fest. Jones takes all economic analysis out of context to support Russia. Zagami is a self-promoted “illuminati whistleblower.” Wow, with allies like them, we don’t need Schumer and Pelosi.

    I have been keeping tabs on Zagami since the mid aughts. Same old same old. They were saying the same thing during the 2008 Georgia invasion.

    Don’t rely on whistleblowers with bombshell information. You and I already know what’s going on. All these people do is keep us from preparing and building.

    I start to even wonder about the blood clots with the large organisms growing. Don’t get the jabs, but whether or not there are structures growing in the jabbed arteries is another matter.

    1. So called “Bombshell” information is most likely hype just for clickbait. The best way to get insight as to what is really going on is to take it to the Lord in prayer. God will tell you the truth on a need to know basis, however, God will not satisfy idle curiosity.

      1. Unbelievable. Who is Jane Ruby? What a farce it all has become. Maybe people will transform in the teenage mutant ninjas or be like Rosemary’s baby.

  11. No staged mass shootings lately. The synagogue feels they’re accomplishing enough for now.

    1. The staged mass shootings appear to have the opposite effect of their intended effect. It just makes more average people go out and buy more guns against the wishes of the freedom stealing leftists. In fact, I am thinking of adding another AR-15 rifle to my collection.

        1. Guns are a great investment if you know anything about them and have seen the prices increase over years. Guns that are no longer made such as old military surplus rifles and pistols always seem to go up in value. AR rifles actually go up and down in prices depending on who is in office it seems. Democrats are the best gun salesmen! The NRA should thanks them.

          1. Indeed, I have to add them to my will as a separate item. My firearms are now worth several thousand dollars. Any knowledgeable firearms owner knows the importance of this type of confidential ownership transfer.

  12. Canada and the US produce 16 million boe a day. Canada may be Marxist, but boy can it produce energy.

    Europeans Laughed at Trump Over Russian
    Gas. No Longer.

    When President Trump warned Germany about their dependence on Russian natural gas, European leaders laughed. Today, they’re learning just how right he was, as they pay a steep price for not heeding the warning.

    In his 2018 speech at the United Nations, Mr. Trump said, “Germany will become totally dependent on Russian energy if it does not immediately change course.”

    He urged them to buy their supply from their allies in North America, adding, “Here in the Western Hemisphere, we are committed to maintaining our independence from the encroachment of expansionist foreign powers,” meaning Russia.

    The Washington Post reported at the time that, “[I]t probably won’t be the script that will be remembered by diplomats but, rather, world leaders’ laughter, caught on camera and shared in viral videos.”

    1. I know first hand how mortgage rates affect housing supply. Friends are keeping their low rate mortgages and turning their houses into rentals when they move. I intend to do the same. There is no way I’m am selling a property with a 3.5% mortgage attached to it.

  13. A potential economic recession and the supply chain bullwhip are colliding

    Freight carriers across all modes should brace for weaker conditions in the coming months

    Subtext: Supply chains are experiencing a massive bullwhip from the COVID economy and have built up massive inventory levels. A slowdown in consumer spending caused by inflation and a potential recession will have a massive impact on freight demand and prolong an inventory drawdown.

    As we look at the pandemic through the rearview mirror, the economy is shifting to a new phase. While the United States is currently experiencing full employment, American consumers are incredibly stressed about the state of the economy and personal financial security. Inflation, crashing stock markets, higher interest rates, and economic uncertainty are sapping any confidence that full employment should offer.

    For supply chains, the consumer pullback couldn’t come at a worse time. The bullwhip effect has created a massive overstock of inventories and wreaked havoc on global supply chains as companies try to recover from the pandemic economy.

    The bullwhip effect
    The ‘bullwhip effect’ is a term used in supply chain circles to describe a scenario in which temporary surges in retail demand are magnified and exaggerated by upstream manufacturers and suppliers, who rapidly increase production well beyond the level that can be supported by consumers. Eventually, retailers find themselves with more inventory than they can sell, and what started as a goods shortage ends up as a goods surplus.

  14. I have been reading different market gurus on CNBC and other places that the market is going lower to S&P 3400-3000… does that mean we have reached the bottom? ; )

  15. Bringing back jobs to the US

    LEGO Investing More Than $1B to Build New Toy Factory Near Richmond, Va.

    Danish toymaker LEGO Group said June 15 it will build its first U.S.-based toy manufacturing plant in southeastern Virginia, a project that will carry a price tag of more than $1 billion and result in 1,760 new jobs.

    The factory will be the company’s seventh global plant and the second in North America. Currently, LEGO building toys sold in the United States come from its facility in Monterrey, Mexico.

  16. US Rents Surge by Another Record, Led by a 41% Jump in Miami; Corelogic

    I hope you love all those Latinos moving up into the cities. What a multicultural kingdom! Time to raise the rents!

    A lot of alt-finance sad sacks are going to be sorely disappointed when home prices don’t collapse as they predicted. In PG County, the Hispanics are even driving out the blacks. What a cash cow PG County has become. Yay! I begged anyone who would listen a decade ago to set up shop there. I love multiculturalism. It’s so profitable!!!!

    Forget Chinese. The new official language of America is Spanish. Just collect the rent.

    1. You don’t think the plebes will cut out Starbucks spending to offset $5 gas ?

      1. The Starbucks demographic would gladly go into debt to keep getting their $7 frappuccinos. I’ve witnessed numerous millennials attempt to give up Starbucks and brew their own coffee at home. They inevitably give up.

        SBUX’s yield is just below its yield at the Covid bottom, so it seems like a safe bet.

      2. No. Plus they expect to expand greatly overseas. I never go there, but the people cannot do without it.

        1. I never go there either. I was in Holland in 2017, where their national brand Douwe Egberts is amazing coffee. Line ups for Starbucks at the airport. Not a soul at Douwe Egberts.

  17. Happy Juneteenth! Now, line up like good slaves and take your employer mandated jabs.

  18. Chris,
    I think relative to the rest of the world the USA is still the economic bright spot as it is the least rotten apple on the shelf. If you are an asset owner then the USA is the best place. If you are a wage slave, then the US economy is not as bright as before BUT still the brightest in the world.

    1. America may suck compared to what it once was, but there is nowhere else to go and make money like here. That’s why so many come here from elsewhere.

      Only Americans who grew up here don’t realize how bad it is everywhere else. The taxes here are so low if one handles them correctly. Passive income earners pay hardly anything in taxes.

      Real estate for locals is the least expensive in the good old USA. People here think housing is expensive now? In Hong Kong, hundreds of thousands live in wire cages. Now that’s slavery. In China they live in shit shacks and the government only cares to the extent the plebes don’t riot.

      In other countries, RE price to income multiples are at least two to three times as high as America, but the gap will narrow. The opportunity is still here to live.

      If New York City is too expensive move to Richmond or NC.

  19. Affordable housing in California now routinely tops $1 million per apartment to build

    More than half a dozen affordable housing projects in California are costing more than $1 million per apartment to build, a record-breaking sum that makes it harder to house the growing numbers of low-income Californians who need help paying rent, a Times review of state data found.

    The seven subsidized housing developments, all in Northern California, received state funding within the last two years and are under construction or close to breaking ground. When completed, they will provide homes for more than 600 families.

    But their exorbitant price tags mean that taxpayers are subsidizing fewer apartments than they otherwise could while waiting lists of renters needing affordable housing continue to grow.

    “That is untenable,” said Assemblyman Tim Grayson (D-Concord), who is writing legislation aimed at simplifying state affordable housing financing. “That is not a sustainable model. We have got to do something to reduce the cost.”

  20. Well over a year ago or more I recall Chris mentioning (or theorizing) the possibility of a civilian work force. Basically, a gulag with nice colors and living wages that people will be dying to get a slice of that pie. Because surviving as a small business, especially with lots of competition, does not seem to be the economic model going forward.

    The food industry may have been the target for covid. Just look at who the winners and losers are and it sure seems that covid was a targeted attack on a segment of the economy rather than protecting everyone’s health. As far as I know a big portion of covid money went to the who’s who of the food industry as mom and pop restaurants crashed in flames. If that is indeed the case then it’s clear part of covid was to allow the giants to take control over the food business. There is not a lot of room at the top of the pyramid.

    The housing overhaul post 08 sure fits the model of guaranteed income for those who fund loans. Currently we are seeing articles comparing how this housing downturn will not be like 08 because the loan system got overhauled. The data says people are in much better shape financially than pre 08 and to that I have a couple of comments:

    *Pre 08 loans were gives to anyone who can fog a mirror and we know how that worked out. That is the “problem” phase.

    *Post 08 the “reaction” phase was “predatory lending” and the realization that the paper boy could not afford the house in Beverly Hills. Continuing onto the “solution” phase everyone must legitimately qualify for a loan.

    We are well in after the solution took hold and had time to work itself out. Perhaps the establishment is ready to make certain all those who overpaid for the houses lately, including those who were fortunate to get in at perhaps at the best buying opportunity in our lifetimes, will provide a guaranteed income stream for the life of the loan. Blackstone may not own those houses on paper, but whoever spotted the money for those loans wants to make sure that a solid income stream is not interrupted. This does not necessarily fit in with the “you will own nothing and be happy” slogan but maybe it kind of does because the bank owns the house until it’s paid off. I think many people never work towards paying off a mortgage or somehow believe there is no gain from it. As long as they can easily make the payments and have money to go to Vegas than I suppose that’s all that matters.

    I believe the system does not work fast and that may be the best cover out there for TPTB while maximizing their goals. The cycles take a long time to unwind and by the time the next phase begins we forget how we got here. Because if things happened quickly it would be easy to identify a pattern and perhaps put a stop to it.

    This is all just my theory based on a few data points. Also consider that fact I may not know what I’m talking about.

    1. I think I understand what you are saying. If you have ever had a conversation with someone who survived the Great Depression – they would emphasize the importance of not being in debt, planning for tomorrow, not wasting, live within your means. These are important lessons to be learned, not to the extent of being fearful to invest however, but you do need to consider the potential risks. Which many do not, they have not heard the stories or lived through financially difficult times. I know of people now who own expensive houses because they got in at the right time, but do not make enough income to support it. I suppose if the idea that housing just keeps going up, you can use your property as a bank machine. Which is fine while that works. Until it doesn’t. Going forward this is what will separate the wheat from the chaff.

      1. My father was born in the mid 1920s and grew up during the Depression. He dutifully paid off the 30 year mortgage and never considered cashing out. He never made more than $40,000 a year and was worth about $1.5 million when he died in 2008. Now, that’s old school. To a great extent I live the same way. The only time I ever take money out of properties is to buy other properties. Although he was a wage slave, I observed how his employers took advantage of him. I didn’t want to take that same route and knew that learning how to trade and speculate was my key to success. In my 20s through my 40s I traded and speculated a lot more than I do now. I think my last real six figure big batch of trading profits came about 3 or 4 years ago with the cryptos. The last few years I kind of spent fixing up properties. I no longer stare at my screens like I used to.

        I think you bring up great points, both of you. The current crop of humans are spendthrifts and piss through all their money as quickly as possible. They don’t even realize it and view it as perfectly normal. The synagogue of Satan has perfected psychological methods to extract the wealth from the people while they go about their daily routines. And this extraction of money from the population is key to its objectives. The ubiquitous advertising is very effective and wears down the average person. The vast sea of humanity identifies with the advertising and that’s why they’re always broke.

        I doubt they’re going to be any laws on the books that will force people to take away their properties, rather the people will be stupid and unable to keep them, and it will be their fault. Their 401K balances will completely lag to what’s needed at their age, because the people will continue to borrow from their balances or piss away potential contributions to spend. Just taking out one or two loans over the lifetime of a contribution plan can completely upend account balances at retirement.

        I see humanity as being completely unable to control themselves. They are slaves and don’t even know it. If you wonder why I make such a big deal about how the adversary’s media portray slavery it’s because it’s being done intentionally to keep the people from really knowing that they are slaves right now. They’re slaves because they don’t even know why they do what they do, but rather act because they have been engineered to do so. Most people are robots and have been trained to be unable to save any money and to invest for the future. Most people have been turned into robots that are completely dependent on others as well as the government for everything. Now that’s slavery.

    2. There was a scheme that was devised by the Army and it was program referred to as the Civilian Inmate Labor Facility program or CILF for short. I still think you can do a Google search for it.

      1. Once a wage slave spent all he had, he could work at a CILF. Get a small stipend to spend at the company store. Receive three squares, a roof over his head, and a free health clinic. Like a slave, he would work for the private sector who would benefit from his labors. If he was a good boy, he might be able to live outside the camp at one of the system’s single family rentals.

  21. I enjoy reading these stories from Arlington and McLean. They help to ensure broken family units and work to stimulate demand and restrict supply via government intervention. These types of stories are a big boon for investors. I think people are in for a big disappointment when prices don’t drop the way they think they’re going to.


    ‘I can’t win in this market’: Why LGBTQ homebuyers say mortgage rates are hitting them especially hard

    •The rapid rise in the cost of a home has made it more challenging for members of the LGBTQ community to buy a home.
    •First-time homebuyers have to pay the higher home prices without getting a boost from the sale of an existing property.
    •According to the Williams Institute at the UCLA School of Law, 50% of LGBTQ adults and 64% of LGBTQ couples own their own homes. For non-LGBTQ groups, those numbers are 70% and 75%.

  22. This is a good observation and rings true.

    When I started working in industry some 30 years ago, the mantra was “outsource and focus on sales growth”. Now that there is a contraction, I have noticed many small businesses like ours are vertically integrating and making everything themselves. This has become so much easier to do with advances in small programmable controllers and the sharing of information and “how to” via the internet. There is a lot of surplus equipment on the market that can be modified and adapted to at least semi-automate and make insourcing possible. Its a good way to get back the margins and expertise that were given away to outsource contractors/countries.

  23. Chris, you are omitting the campaign against white people. Business prospects for the U.S. might be shining brighter. You argue this case well. But Wall Street will continue using the Left to demoralize and cut white people out of the economy. You don’t address this. The economy will be booming here, but whites will be edged out by laws and media and massive colored immigration.

    So I have to disagree that the U.S.’s future is bright. And you ought to know that ending the 2A is a top priority for the Left; which means Wall Street wants the guns.

    Business can’t be booming, or lasting, if massive sectors of society are at each other’s throats.

    1. The future is brighter here than anywhere else. That’s if you’re the landlord. Let the animals argue amongst themselves in their debt slave prisons. Just collect the rent.

      I have had countless people tell me that they want to get ahead, but don’t want to be landlords. I tell them if that’s the case they better have a skillset like being an entrepreneur or a YouTuber personality.

      I personally know of a few grad degree economists and they are dumb debt slaves, too, like most readers, dumping nickels and dimes into their retirement plans. Talk about stooges believing their own propaganda….

      You think a person can get rich by reading Hero Hedge or Guess again. Most people reading and ZH live in their parent’s basement, looking for get rich quick ideas with no work involved.

      Think outside the box. Savvy people can make a great life in America. Let me know of a better country.

      I can lead a horse to water, but I can’t make him drink. Demoralized horses don’t even leave the barn.

  24. Someone asked me about Seeking Alpha. All I know is they came across my site and deactivated my account. You know how the world is full of brown shirt tattlers anyway. I wasn’t a paying customer for a long time, and went to the site very infrequently, but evidently their editors do not like what I had to say. I wrote articles way back, but as you know, those who have used my research long term should be millionaires and in the top 10% just from assets with passive income to boot, as my understanding is on a much higher level. At SA I was writing with one hand tied behind my back. That was at least a decade ago.

    Those who can embrace my conclusions here, especially with regards to this article, can establish themselves to make a lot of money from this ongoing bust, and we can prosper while everyone else parses the MSM and alt-media charlatans. Don’t be reliant on others, even me. MSM, including Seeking Alpha gate keepers, are senior edited and managed by Arlington and McLean, VA.

    You may say that you don’t have a background in this material or it doesn’t make sense. Well, at one time about 20 years ago, the bible didn’t make sense to me either. For those who are like this I say, make time to embrace it and learn it; you have no choice. Your existence depends on it.

    I have had many people come across and email me over the years, and I gave specific instructions on what to do and even which property and investment to transact. That was a long time ago for some, and I never hear back. Either you listened to my suggestions or you didn’t. Sorry if you didn’t.

    Actually, we only need the Bible and Jesus Christ!

    F’ the new world order!

    1. “I gave specific instructions on what to do and even which property and investment to transact.”

      I wasn’t aware of your blog then can you post the link to those specific instructions?

      1. A very green day. Cramer stated 12000 btc, which means the bottom must be in. Scalped Revlon stock but not sure how a 5 million floater can trade over 100 mill volume for 3 days with a high short and only inch up about one dollar a day. Will they bring a China conflict into play soon? maybe.

        1. Cramer has broad exposure and I do not know why he makes these broad sweeping declarations like BTC 12,000. The world and MSM had gotten bearish over the holiday weekend, so I suspect we saw a short term bottom.

          BITF just sold 3,000 BTC from it’s holdings. I don’t get it. If I had that amount I would sell as the price rises. Gradually, too. Even supposed knowledgeable parties make misguided moves.

          I read stories that the Fed may have to scale back the balance sheet rolloff while raising rates. I think the 95 billion a month is a large amount.

    2. Seeking Alpha like Zero Hedge gives very poor advice. The writers on seeking alpha discourage
      people out of good investments while pushing bad investments. A hard example for me was an article on Seeking Alpha explaining why the metal Rhodium was a useless investment. So I sold out of a Rhodium ETF at a decent profit, however, it rose 4 fold afterwords. Take these articles with a grain of salt.

      Lesson learned. Think for yourself when investing. Take the contra and go with your gut instinct.

  25. Chris,
    I love your past article about firearms. Very interesting history about how dictators disarm their population and as soon as they do so then the persecutions start. I especially like the paragraph about how Fidel Castro promoted firearm ownership in Cuba until he became dictator and then suddenly disarmed everybody under penalty of death.

    Two lessons here:
    1) Do NOT give up your guns under any pretenses. If the government comes to confiscate your weapons then put up a fight. Make them pay a high price for getting your guns. Give up your guns and the next thing to come is persecution.

    2) A well armed population prevents a heavy handed dictatorship. Explains why the US could not impose the vaccine mandates like France or Austria which don’t allow gun ownership. Governments like communist China and Nazi Germany thrived when they took away everybody’s guns.

    I own guns because I fear mob rule like the George Floyd riots in 2020 and I fear a heavy handed government.

    What is encouraging in the USA is that more Americans buy guns each time the leftists want to cause chaos, or propose to restrict gun ownership.

    1. That is 100% correct. We give up our guns, we die either way. I would rather fight. I have my arsenal.

      BTW the more I observe our circumstances, the more I am aware of our adversary and it’s many forms. There are no laws on the books for forced confiscation nor registering. As long as the firearms were lawfully purchased at the time of sale, that’s the end of our obligation to the government. If they force the issue, tell them you lent them out to a friend who lost them in a lake when their boat tipped over. The government can’t do a thing after that.

      If they force us to give up our guns lest they confiscate assets, I will keep the guns and burn down my properties as well anything else.

      Once they take the guns it’s all over. Fitzpatrick observed the same thing in the Marxist nation states.

  26. With manufacturing on the upswing, which states and cities will benefit and possibly rental real estate ?

    1. Definitely states that have lower taxes and less restrictions. The red states like FL and TX definitely. Others in the Sun Belt areas are doing well. The exact areas the institutionals are buying up SFRs are the same areas the manufacturing firms are looking to build manufacturing and supply chain capabilities. Stay out of the NE US, including VA, and the West Coast as they are too expensive and restrictive.

      Look at the Ford Bronco. The ones built in MI are of good quality. The ones built in Mexico are having all sorts of problems.

      The large money firms are buying up houses for these future factory employees. The employees won’t own a thing and they’ll be happy to have a paycheck, a roof over their heads, three squares, monitored internet, subsidized health care.

      Who said slavery was over? We should have a Juneteenth for the worker slaves that are currently living.

      Enjoy your racism calls y’all! The ones crying freedom are the most enslaved.

  27. By the way I have been following your work for a couple of years now first time posting, not even sure how I found you but I appreciate your perspective. It is a combo alt media mixed with mainstream mixed with religious doctrine mixed with trader and investor mentality with no political correctness. Not many people like you so I pay attention and have learned much. thank you.

  28. I agree with most of the assessment here, even though our freedumbs are being eroded slowly we still have more than many other eastern nations. Most people are in a trance so instead of following the Orwell playbook it seems we are in the Huxley playbook. Everything seems to be a psyop, figuring out the truth is not easy. Divide and conquer seems to be the trick because most people have no clue who the enemy is still worshiping false idols.
    If debt doesn’t matter than I believe this debt based system can go on forever and everyones 401ks, medicare, medicaid, social security will be just fine but common sense would lead me to believe that there either has be a debt collapse or run inflation super hot for the next 10 year to grind down entitlements. Either way we live in interesting times and self sufficiency is order number one.

    1. But these are choices up to the individual. The freedoms still exist, but most choose to remain within the system. I can still buy firearms, own assets, travel freely, send critical emails and letters to my elected officials. I choose to take care of my health needs.

      I don’t get concerned about the need to belong or prove I am not racist. I prefer my own kind and don’t care what others think. People are only in Huxley’s prison cell, because they choose to be.

      I don’t even consider SS benefits when it comes to retirement. I haven’t paid SS premiums in over 20 years, since I don’t receive earned income. I refuse to be dependent on it. I refuse to be dependent on government benefits.

      I choose to not be demoralized by Alex Jones and the alt-media. I choose to do my own research. I know the constitution still exists in its purest form and know what it affords me.

      The alt-media readers forgot. They impoverished themselves by believing the lies and are now dependent on private sector jobs and have to kiss ass.

      Self sovereign people are in a different place.

      1. I agree with all that Chris, being outside the system is priority number 1. But half the country depends on some sort of government check to survive and I believe the system is breaking slowly coming to an end or else there would be no need for fake viruses and cia controlled psyops. I don’t take deagel very seriously but I would not be surprised by a mass depop event to get most people off the dole. You can’t run a debt ponzi forever can you?

        1. Is it really a debt ponzi scheme? The real costs of UST debt dropped by about 10% over the past 18 months, even after accounting for the new debt. SS and pension obligations dry up as colas fail to account for even CPI price inflation. I see it moving forward for USA, inc. The poor sad sacks who live there will be tossed aside for all the new immigrants who lower the wage base, which counterintuitively support the USD in the global markets.

Comments are closed.