The Coming Inflation Disaster

I am very conscious that so many people around me right now will be exposed to the problematic forces confronting real estate and equities markets everywhere.

There are no places on the planet Earth right now that are completely immune to severe risks in the ordinary kinds of assets that people everywhere are constantly told are 'safe,' or 'as safe as houses...'

Georges Cinq, I think.
Yes.

Because we have all come to live in a monetarist central banking paradigm over the last forty years. And so ever since the tenure of Fed Chairman Paul Volcker, the expansion of the money supply is the most critical factor to the pricing effect of inflation on just about anything. But then, the fact that the monetarist mindset has taken hold and is entrenched in - literally baked into - the national debt structure of the funding of government, does not mean that the policy leaders really fully understand what monetarism actually is and how to manipulate circulation velocity with optimum economic and social/political efficiency using the monetary taps.

It is not going to be easy for me to discuss with you the coming massive problems and dire straits of the middle classes as they attempt to stave off their looming inability to stop spending on their presumed 'asset values' using debt.

At the same time of course, no commercial banks will ever reign in their own propensity to extend debt based on valuations of real estate. This lending of money by banks is the basic underlying cause of consumer goods and services inflation - since limitless new 'money' is chasing the limited supply of existing products.

Most people will at this point have a strong pre-commitment out of their own pockets to the position that their investment stance is sound and that all of their 'assets' are never going to be worthless as such.

In fact they are already much worse than simply 'worthless;' they have stolen decades of people's time and work-lives and will not be able to return anything to them on those things.

It makes a lot of difference...
What you serve things in.

You will never be able to shake people's hypnotized fixation on the idea that 'government' controls everything practically speaking, and that 'government' will do something to save everyone and that besides only 'government' makes new land available and can permit who gets to build what onto where. The theme with that kind of thinking being that houses/buildings are in short supply compared to the demand for them.

It is one thing for someone who has a large percentage of ownership of their land and house/s, and quite another to discuss what most ordinary people are doing. Most ordinary people have no idea what a sound equity position in a mortgage-funded piece of real estate is, and no self-discipline to stay away from so-called 'home equity loans.'

And there is absolutely no possibility that governments will ever cease wasting money on private-interest schemes and paying out vast sums of taxpayer money to lobbies.

Until there is a disaster.

When you buy a new house you pay an inbuilt premium for 'newness.' When you buy an old house you buy an expense and a depreciating asset. ...And a 'thing' that has a 'foot-print' of many square meters all of which are land 'rate-able.' And which is immobile. It cannot be moved away from some poor economic environment to another, better-off one.

When you buy a case of 100 year old port wine you buy something that can last another hundred years. ...Which occupies very little space or 'footprint,' and that has a very low maintenance cost if anything at all. And that is mobile in that you can, if needs be, move it around quite easily.

And which goes down in relative supply terms as the years pass (there's less of it available from such-and-such a particular vintage).

Now whether there is either a consistent demand for such non-essential premium items, or whether these things always go up in price just because of a rampaging money supply and secular inflation is moot.

The unthinkable of course, is that a bottle of 1,000 dollar vintage tawny port today will be worth 10,000 dollars in the near future.

The 1 million dollar house will not be worth 10 million dollars. But if it is - then so too will all the on-costs and land rates and capital gains taxes and everything else the government can suck out of the situation, have gone up equivalently, although more likely even much more than -.

My parallel projected forecast is unthinkable.

Which is namely that land and property will have gone down ten-fold or literally be worthless and less than worthless - and that wine of all things will have gone up tenfold.

You would think that it is wine where people's self-discipline goes out the window and where they over-indulge and do foolish things. Because that is what everyone is told from youth after all.

And they are told that property is the only safe form of investment.

And that property never goes down.

You are prudent and wise if you stay away from wine and stay entrenched in real estate investments.

No modern-era person respects the saying, well-known to people of the ancient past, that whom the gods wish to destroy they first make mad, and then the second idea which goes along with the first -, that wine is the invention of God and sacred and that far from making a sane person mad, it has the capacity to let them gain truthful insights.

The gods do not suggest and nor do they like, humans with a lack of self-control. That is not the point here. 

This place actually has an odor
of pink musk lollies about it
in there, or real marshmallows
not the fake synthetic scent of that stuff!
The Palazzo Brancaccio.

They love people who strive to have self-control.

But more than just sometimes, freeing someone from the false and the fraudulent conceptions about 'self-control' (and more often control by others), is the pathway to being able to see what is true and being able to distinguish it from what is abundantly, yet tragically, seemingly invisibly false.

People have zero memory.

No one today in the world of market commentary recalls that their idol Paul Volcker, completely stuffed up his 'brilliant genius' plan to shift to a monetarist view of economics and central banking and how to 'stop inflation' - and that he by mistake instead created the biggest recession since the Depression and guaranteed that Carter lose the election then, pinning everything on the political establishments, when it was all due to his own arrogance and ignorance of monetarism and the mechanics required to control inflation.

In the same way, no one recognizes that governments and central banks have totally 'lost the plot' so to speak, and moreover, have actually lost control of the near-term future outcomes to do with insane credit expansion using 'free money' for stupid assets such as 'real estate.'

You cannot eat a brick.

As the pharaohs all found out in their end.

Rich Muslims in London do not bow down and worship Allah; they bow down and worship money and middle class mercantilism and property development and real estate investment.

Hamas does not bow down and worship Allah, hoping to kill all the Jews and overrun Israel heralding the return of Isa ibn Maryam, ascending the minbar at Damascus, Syria and signalling the End of the World. They are instead obsessed with fighting the Jewish-dominated United States economy (so they think that it is) out of a sense of envy and jealousy and competition for worldly power - whereas a single crate of wine would do that on someone's personal level of things.

...He tramples out the Grapes of Wrath and you all fall for it every single second of the day if not for angels holding you back from falling into the Abyss.

I am right here and what I say is how it will be.

The only people getting out of here now are a handful, a lonely few. Could be, maybe, you. And not too many else.

There is no one on this planet who can tell you by strategic guesswork, or just wild attempts at prophecy, that Algerian terrorists do have nuclear devices with which they can, and they will, destroy French vineyards.

The only person who can know that kind of thing for a given, and can tell you it, is someone who has been to the future and that is only possible in little white Tic Tacs. LOL

And oh, btw, there is not a goddamn thing 'you' or Chris Wray or anyone else can do about it to stop people like me from going there and saying whatever it is that is waiting there for everyone.

Not a real pic...
Gee it's close but.

Pay me money - um ten, no now it is over a hundred million dollars, and I will show you and take you and give you access and pics and everything. Why t h not??

I can deliver. And guess what, there's not too many out there by the same token who can meet my price back. They in fact, cannot deliver.

Elon Musk is not smart enough although he would be tempted if he knew.

Do you think there is any chance whatsoever, that what I just said will not come to pass?

Ya think?

Maybe you should go back and re-read those books we offered categorically explaining about the Iranian military satellites and 'rainbow bomb' ballistic missiles, and specifying Ukraine as a key war zone, and literally showing you where and when the 'biological weapon' was released in Hong Kong (was in HK, not Wuhan) - and all of those things before they happened!

You think there is any chance at all that the French wineries will be able to stay intact?

LOL

And like, people still think there is no 'evidence' for ET Aliens, right.

And not TEOTW either, right?

But wait, what if what I said here happens? What then -, in your mind... 

What are guys like me really doing though, right?

Well for one thing I like to find great things and then I like to preserve them.

I don't throw good stuff away.

'I.'

'Us' I guess, really.

How about you?

(Aruna's a friend of ours too):