Elysium slowly emerging; Wealth disparities to continue widening

Income-generating asset prices will keep on rising

Government spending, not interest rates, is the ultimate litmus test to determine the direction of asset price values; The Iron and clay kingdom comes with a steep price tag

Subway is far less expensive than McDonald’s. The initial investment for a potential Subway operator ranges from $222,050 to $506,900, according to Subway’s 2022 franchise disclosure report. That’s up from between $116,000 and $263,000 in 2019.

Here’s what it costs to open a McDonald’s restaurant, Business Insider, January 23rd

Owning a Subway franchise; double the cost, half the fun

Income generating assets of all kinds have exploded in value since 2019 and their costs perfectly coincide with the covid “stimulus”. I have been warning the reader for a decade to own income generating assets.

According to this article, the cost of opening a Subway franchise has effectively doubled in the past three and a half years, while the author notes that this is still a relatively inexpensive venture when compared to other franchises.

Let’s face it; the only people who can now afford to open a Subway sandwich shop are those who already own a portfolio of income generating assets and have benefited from the covid “stimulus”.

If you are an SFR investor, your net worth has probably doubled in the past few years, so opening a Subway franchise in real terms is not a big deal. But for some poor working stiff looking to get away from working for the man, opening a Subway franchise is now nearly next to impossible.

Two-thirds of Americans expect the housing market to crash in the next 3 years; I take the contra

Most adults said they feel that the housing market is headed off a cliff, but unemployment remains low and house prices are rising, albeit at a slower pace. The housing market may be in a slowdown but home prices remain high. Two-thirds of Americans are expecting it to crash, according to one report.

Two-thirds of Americans expect the housing market to crash in the next 3 years. Are they overreacting?, MarketWatch, January 25th

Overall; U.S. house prices are still relatively inexpensive

The annual home buyer report by NerdWallet, which surveyed over 2,000 adults in the U.S. in December, revealed that 67% of Americans believe a housing market crash “is imminent within the next three years.”

A recent report by Redfin , which tracked home-sale prices for the four weeks ending Jan. 15, found that the median price of a house sold in the U.S. was actually up 0.9% from a year ago, at $350,250.

Overall, home ownership is still a big milestone for the survey respondents. According to NerdWallet, 83% said that buying a home “is a priority.”

Some 11%, said they plan to buy a house in the next 12 months. Among this group, they planned to spend roughly $270,000.

The process to Elysium continues; Wage earners vs. passive income earners

Most people who work for a living have effectively seen their real wages cut by 15% in the past three years. I tell salaried people now to give only 85% effort to their jobs. A multicultural and multiracial kingdom of iron and clay doesn’t come cheap.

It’s quickly turning out to be just like Elysium. Imagine what it will be like in another five to 10 years.

I read one article after another, about how the average person thinks real estate is going to crash. All I come across are YouTube videos proclaiming the demise of the domestic housing market. Gird your loins, my friends; you have not seen anything yet. While the incredulous people living here get sicker and die by the millions, ostensibly for reasons that have nothing to do with covid nor the injections, the uninjected immigrants and illegal aliens will continue to pour across the border and replace the Americans. They all need a place to live.

Eventually, the Federal government will step in to regulate housing and rents, but at what price levels will that happen? I have been warning the reader that housing in most areas of the U.S. is relatively inexpensive, especially when it comes to rental income. If you think prices and rents are high now, just wait a few more years.

All I need to look at is the level of federal government spending. Interest rates mean little when the federal government is running trillions a year in the red.

 

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19 thoughts on “Elysium slowly emerging; Wealth disparities to continue widening

  1. The heart attack in the SFR market is turning out to be seasonal flu and indigestion. It looks like this Spring we will see renewed vigor. The articles in the media are intimating that the market is quickly recovering.

    Get your cashouts now and start the process of relocating to the homogeneous areas! When things really fall apart in 2027, you will want to be around like kind. Stop believing the programming and commercial propaganda.

  2. The headline data slightly lower than expected. The core matches estimates. Spending and consumption data a notch below consensus.

    YoY PCE at 5.0% was the biggest positive surprise.
    ___________

    Overall, decent data points for the bulls.

    Core PCE Price Index (MoM) (Dec)
    Act: 0.3% Cons: 0.3% Prev: 0.2%

    Core PCE Price Index (YoY) (Dec)
    Act: 4.4% Cons: 4.4% Prev: 4.7%

    PCE price index (MoM) (Dec)
    Act: 0.1% Cons: 0.2% Prev: 0.1%

    PCE Price index (YoY) (Dec)
    Act: 5.0% Cons: 5.5% Prev: 5.5%

    Personal Income (MoM) (Dec)
    Act: 0.2% Cons: 0.2% Prev: 0.3%

    Personal Spending (MoM) (Dec)
    Act: -0.2% Cons: -0.1% Prev: -0.1%

    Real Personal Consumption (MoM) (Dec)
    Act: -0.3% Cons: Prev: -0.2%

    1. Unless those numbers are fudged then what recession? At least we see again how the media persuades people of something that isn’t happening. Yet eggs and certain items are increasing in price, the debt clock is the highest it’s ever been. It appears they have commited to keep kicking the can down the road and all is well for the time being.

      Kinda crazy how TSLA still upticking. It was horrible doom and gloom the last month or so but now it’s a totally different scene.

      And as I mentioned in a previous comment a few articles back, AMZN to go over 100 this week. There ya go! PRCH OPEN RDFN also doing well.

      1. The globalists needed to show Musk who was boss. They told the goy boy to straighten out and sing to their sheet of music and retake #1 wealth position. Sing the praises of EVs, brain chips, and PC Twitter.

        It was overboard looking at the TSLA drop.

        Remember that the synagogue needs a multicultural and multiracial ESG world and that take trillions and trillions of cheap money. The proposed world poses no threat to the establishment.

  3. While people can’t afford to buy, builder constructs thousands of rentals for investors

    https://www.dallasnews.com/business/real-estate/2023/01/24/while-people-cant-afford-to-buy-builder-constructs-thousands-of-rentals-for-investors/

    As potential homebuyers wait for prices and mortgage rates to recede, an Arizona company is moving in to fill the void by buying and renovating rental homes that offer an experience similar to a traditional for-sale subdivision.

    Tricor, based in Scottsdale, has constructed or renovated 22,000 rental homes since 2014. It completed 2,600 last year. The firm operates in 10 states and is licensed as a general contractor in 17.

    “We just have a lot of traction in Texas,” said Joel Thomas, vice president of construction for Tricor, adding that investors still see the need for housing in D-FW. “There are people who are moving to Dallas regularly, and even if we’re thinking it’s slowing down a little bit, the pace is still outpacing new construction or available units for rent.”

  4. CJ Evans,
    I really think Elyssium scenario in the movie will become reality in the current trajectory.
    Elon Musk and Jeff Bezos are building rockets as well as Virgin Galactic. Then there is talk by Elon Musk of settling on Mars. There must be a reason for all this. I think the uber rich have plans of leaving Earth as the Earth’s ecosystem collapses and/or the masses wake up and go after the uber rich. After Earth becomes an environmental and social toilet bowl the uber wealthy will blast off to an orbiting space station and or go to the moon or mars and leave the masses to rot on Earth. This assumes that there really is an outer space and the planets and sun are not just an illusion.

    These people can run but they cannot hide.

    1. We have never even been to the moon; can’t go now, certainly didn’t go then. How can these people leave the earth? The entertainment consumers have been believing a lie.

      My opinions don’t mean anything. But my observations hold merit.

      Supposedly, we have not been back to the moon in 51 years. We currently do not have the technology to leave lower earth orbit as of this post. We certainly never went in 1969 on Apollo 11. The whole Sci-Fi genre is propaganda.

      The wealthy are stuck here with us.

      —————
      Rev 6:16-18 KJV
      And the kings of the earth, and the great men, and the rich men, and the chief captains, and the mighty men, and every bondman, and every free man, hid themselves in the dens and in the rocks of the mountains;
      And said to the mountains and rocks, Fall on us, and hide us from the face of him that sitteth on the throne, and from the wrath of the Lamb:
      For the great day of his wrath is come; and who shall be able to stand?
      ———-

      If you actually believe we can pass through the Van Allen belts and sail off into a harsh radiated space, I have a bridge to sell you. Space radiation is lethal for more than a couple hours in space between the Van Allen belts and the moon. Besides, the spaceship would cook to 250 F. Satan has deceived the whole world! LIES!

      Another falsehood; the people will NEVER wake up! They are holding on to this illusion as much as those who promote the illusion. Just asked an injected person if they have regrets. the answer is NO!

      Am I the only one who understands behavioral psychology? I talked to trained psychologists and they don’t see what I see. I have been a student of behavioral economics for almost 40 years. The evolution in the advancements in this field is breath taking.

      The people love their servitude.

    2. Why would they leave Earth to go live on some inhospitable rock? That’s assuming they can even get to the moon or Mars, which is impossible.

      “Elites” have no fear of the masses rising up. People are afraid to say anything politically incorrect, so the idea that they will take up arms to overthrow the system is preposterous. People also don’t even know who is in charge. They keep saying it’s “the liberals” or “the corporations” without recognizing that it’s actually the synagogue. So-called patriots on the right are actually the biggest supporters of the SoS.

  5. GDP, PCE both better than expected.

    Durable goods orders looking nice at a sharp rebound from last month.

    What’s up with jobless claims? 186k? What are people getting sick and quitting? 😅 Going on the government dole? 🤣

    Chicago Fed index basically flat.

    The macro numbers look good! Life is good (four more years).

    1. I never understood the appeal of opening places like Subway, Jimmy Johns, Jersey Mikes, Blimpies, Quiznos, etc..Seems like one could rent a small area in a mini mall or build a small building and make their own sandwiches rather than get an expensive franchise. Some of those franchise owners are sleeping in the back rooms. Selling sandwiches 7-10 bucks a pop would require alot of customers per day to cover operating costs.

      Since the numbers are not as bad as the media hype states, and things are going good, maybe Powell gives a 50 rate hike instead of the already priced in 25 next month?

      TSLA really popped since yesterday AH, although I think expectations were set low. Occasionally see a few of them in my area, there are a few charging stations too. Expensive, not much elbow room and not really an attractive car to look at. I would never buy one.

      I was thinking the EV theme would come back now that those earnings beat, the other EV stocks aren’t upticking much, at least not yet. I’m wondering what the next sector pump theme will be. BTC still on the rise, OIL in the news, and yep…even real estate related stocks are slowly upticking.

  6. High profile income-generating assets like sports teams increased 30% in value in one year.
    ____________

    The World’s 50 Most Valuable Sports Teams 2022

    https://www.forbes.com/sites/mikeozanian/2022/09/08/the-worlds-50-most-valuable-sports-teams-2022/?sh=6fd7419f385c

    The world’s 50 most valuable sports teams are worth a combined $222.7 billion, 30% more than a year ago, the biggest increase in five years.

    The NFL continues its dominance, with 30 of its 32 teams in the top 50, making up 60% of the list. The last time the NFL was represented by at least 30 teams was 2014. Last year, it had 26.

    In 2013, the league had a record 32 teams in the top 50. But back then, the top three on the list were soccer teams: Real Madrid, Manchester United and Barcelona. This year, the NFL has six of the top ten and 13 of the top 20 teams on our list. The main reason for the NFL’s success: the richest media deal in sports, worth $112 billion through 2032.

  7. CJ, was wondering what you thought of the Anthony Migchels article on Henry Makow’s site today about the WEF being set up to fail as a way of bringing in CBDCs.
    https://henrymakow.com/2023/01/wef-agenda-is-designed-to-fail.html
    The things said by, for example, Yuval Harari, are so in-your-face, over-the-top evil that one wonders if he isn’t purposely trolling just to get the worst reaction possible. Of course, he may just be reflecting the supreme arrogance of the WEF.
    He posits that the USD will collapse as the world chooses a gold-backed Chinese currency. This is interesting given the claim that Saudi will start accepting non-USD for oil purchases.

    1. I don’t really get involved with the individual puppet, per se. Whatever any of these WEF cast of characters say is for shock value and they are actually very successful at demoralizing the recipient of such over the top opinions.

      The one comment that holds credence is the one about not owning anything and being happy by 2030. Why? Because I can extrapolate from the start of 2020 and figure out that by 2030, this prediction will be largely correct. All we need is another couple of crises and it will be fulfilled. There is not a peep out of the people.

      I notice how the alt-media get uptight about CBDCs. I say to relax. If someone is already poor, what does it matter? I observe how the alt-media get uptight about trivial things like which politicians said what. I observe how they rally around a supposed Nazi sympathiser.

      I get it. These banal topics are easily relatable. It’s the little things that stick out to most.

      I remember Bilderberg and how the alt-media railed against it. I don’t even know if it still takes place. I assume it does. Same will go for Davos and the WEF. Then there will be the next alt-media pinata.

      I am warning the readers to do as much as they can to prepare for what’s coming. We have four more years. I am buying more properties out in the rural areas. Prices out there are on fire, because there are others who read what I am writing and are not complaining, they are taking action.

      Take action and stop consuming this shock value. Of course, what these WEF clowns say is abhorrent with everything that is congruent with biblical Christianity, but there aren’t many biblical Christians left. The world’s population deserves what it has coming to them.

      They celebrate Daniel’s iron and clay kingdom, they get punished.

      1. Everything you are saying makes a lot of sense. The push for enslaving the population is a real and true trend, I am amazed how many normal people play around blind and deft as this trend does not exist, listening to politicians rosy economic fantasies and continuing their unclean lives pretending to be as rich as they were yesterday or fifty years ago.

        Work harder for loosing purchasing power each time a “new” crisis arrives, and give many thanks and your blood to the unmoral sexual pervs and dishonest crooks that rule all around the whole Babylon, the Prostitute on the Beast.

        ———————————————–

        Revelation 17

        One of the seven angels who had the seven bowls came and said to me, “Come, I will show you the punishment of the great prostitute, who sits by many waters. With her the kings of the earth committed adultery, and the inhabitants of the earth were intoxicated with the wine of her adulteries.”

        Then the angel carried me away in the Spirit into a wilderness. There I saw a woman sitting on a scarlet beast that was covered with blasphemous names and had seven heads and ten horns. The woman was dressed in purple and scarlet, and was glittering with gold, precious stones and pearls. She held a golden cup in her hand, filled with abominable things and the filth of her adulteries. The name written on her forehead was a mystery:

        Babylon the great

        The mother of prostitutes

        And of the abominations of the earth.

        1. Amen brother. The Bible talks about how these people will rule. Homosexual pedophilia with church and politicians? So what, the Bible says so. Why get indignant? That ship has sailed.

          The alt-media’s talk of such debauchery and sybaritic lifestyles just externalizes the hierarchy. What gets me is how shocked people still get..I don’t waste my time and energy indulging in the topic.

          Humans have been on this planet for 6,000 years. For the first 5,950 years, people prayed for their people and village and relatives and country. For the past 40-50 years, the people pray for the whole world. What good does that do? Pray for your like kind. Pray to Jesus.

          Plan. Relocate. Build. Prepare.

          1. Looking at a cash out for as much as 600k. Pushing forward plans and getting a move on. Two more properties and a 1031. All in homogeneous areas out of the cities.

            Plans into action. The time is NOW.

  8. I was in dark city a few days ago. The economy is a socialistic one. There is no way a capitalist economy would allow the mass of government workers and contractors I see. I see these thousands of the lesser nomenklatura running around in their leased Mercedeses. It can’t last unless the regime wants it go on.

    I guess your income is good so long as the government stays socialist, CJ.

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