My buddy Gaye (https://strategiclivingblog.com) interviewed me Wednesday for an upcoming article she’s working on about social media’s role in life. Gave me an opportunity to talk more about one of my favorite topics: Asset-stripping of America.
You see, thanks to “financial engineering” the world is changing – and not for the better. That’s because we are quickly moving into the Rent Your Life model. Yes, that’s where a good part of the present-day socialist bent is coming from. People with nothing will find all manner of excuses (wrapped up in some bullshit ‘greater good’ that doesn’t pass muster on inspection) to steal from people who actually work hard. SJW’s are just social con artists.
Once upon a time, people mostly owned their homes in America. When a home was sold, like during the Great Depression, a substantial down payment was involved (30-40%) and the seller would often take-back a first in order to keep banksters out of the mix.
This was a time when people held jobs and in their spare time, their “side hustle” would be to build a house. The process resulted in “sweat equity” – and lots of it. Plus when a home sold, the interest went to the builder not the bank. (The leech class must have hated it!)
Today? Houses are a fine example of “asset-stripping.” The average ownership fraction in a home is declining, however slowly, but the “equity portion” cited by the banking class goes up. Not because a great amount, and almost entirely due to effects of inflation.
Remember, we have continuously warned for more than 20-years here, Inflation is the Big Lie. Prices do not go up. The value of money is watered-down. So it takes more depreciated “money” to buy the same goods.
The intrinsic value of last night’s dinner (filet, cut into strips & sauteed with fresh mushrooms with a salad, thanks for asking) has never changed. Humans have been eating meat on a stick over fire with greens for how long?
We are being rolled (as in down a dark financial alley) into a purely transaction-based economy. Want a new car? More than 50% of new cars are leased. Reason? No one can afford rolling their equity around. We rent, not own.
In fact, so addicted to excessive consumption and thetransaction-addiction, that not only have we spawned a whole “self-storage industry” but at the secondary level, sniping bargains at impounded storage units then spawned an even greater “need” for consumption. Circular, vicious, and resource-depleting. See the TV shows about treasury hunting in storage unit auctions.
Which means what for the Markets?
This morning, the markets were down 230-odd points on the Dow futures. I know that I rail against the evil delusion of cryptocurrencies as a made-up pseudo-money that gobbles huge resources (energy) but compared to the Bitcoin scam (a totally EMP-exposed money) the stock market is nearly on par.
Used to be stocks had lots of Book Value. (See Buffett and Mungher’s work). That a-goner for the most part.
The pattern is simple: Financial Engineers want to find how to take your net worth and convert it to their net worth and they offer lots of do-dads to sucked you in. Reverse-mortgages, are one example lots of older people (who didn’t pay off their home) ware being forced into. Another is your “education” where you will be “schooled” by a Ben Dover in the financial aid office. Make the parents cosign for a student loan?> I told my kids “Hell no!”
Schools are not teaching core financial basics; return on investment, opportunity cost, and the real cost of interest. Not that the American Institute of CPA’s hasn’t been trying with their Feed the Pig campaign. But, really now, think about it: Look at the web search data for the following topics and tell me what it says about financial smarts. Ready? A-Googling-we-shall-go…
- Google results on the word “transgender” 146-million
- How a bout LBGT? (lower-case) 225-million
- Can we look at Facebook, then? 225.27-BILLION.
- On the word “socialism” 165-million.
- “Car lease”?. 754-million…
My point? Ah..the “grown-up” hard work and sweat of putting on “the grind” every day to chase the bag:
- “net worth” 109-million and that has been commonly used for more than a hundred years!
- And “feed the pig”? 582-thousand.
We don’t need a left field event to take down America. Just keep doing what we’re doing and keep the Digital Mob Rule coming. Aided and abetted by left-leaning social media. Already, we see how 15-states have movements afoot to toss the Electoral College. Popular Vote = Mob Rule by Big Cities, if you hadn’t figured it.
Stripped of assets (like home equity and owning your car) what’s left? Why DMR – Digital Mob Rule which is just what promoters of the direct popular vote are after. Because from there, it’s just a hop, skip, and a jump to bankrupting the country. After which, the new breed of socialist idiots (Ocsavio Cortez, et al) will have their hand at turning once Fortress America into the next Venezuela. I expect they will be successful, though hopefully, long after we depart for the tax haven called Hereafter.
Just effing dandy. (You starting to grok why the futures are down 240? When as much money as possible is finally “in the market” it will be “crashed” and on the other side of that, people with a little dough parked in paid-for real estate (fee simple and taxes current) ugly precious metals and TreasuryDirect accounts – along with a home garden – will be the only survivor episodes that will matter.)
Related: hot off Business Wire:
“The Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25), which reports economic activity from 25 companies representing a cross section of the $1 trillion equipment finance sector, showed their overall new business volume for April was $8.8 billion, up 11 percent year-over-year from new business volume in April 2018. Volume was up 7 percent month-to-month from $8.2 billion in March. Year to date, cumulative new business volume was down 5 percent compared to 2018….”
Um…Like the old Texas oil saying goes: “If it flies, floats, or fks, lease it…”
Immigration an IQ Downer?
Let’s face it: The rest of us don’t have time or choose not to afford kids. But very much on point is this NBC-Think piece: “IQ rates are dropping in many developed countries and that doesn’t bode well for humanity.” What they fail to zero-in on: The immigration rates of the victim (receiving) countries. Ah, the UN is running its own crooked world governance game, are they not?
Do notice how when I mention these socioeconomic realities I’m a right-wing nutjob in the woods. Yet when it shows up in the Mainstream…
And it IS like a change of programming may be evolving as the NY Post runs with “Smarter people listen to instrumental music: study.”
You mean like the great jazz (mostly Atlantic Blue Note, and Ahmad Jamal) and recently Bernie Williams (Example track: Ritmo de Otono) that we have been recommending almost forever? Why ‘magine that, would jah…
Right there as a pop-up:
“In honor of the holiday, bond markets will close at 2pm ET on Friday, May 24, 2019. On Monday, May 27, 2019, US stock, bond, options markets, and the Federal Reserve Bank will be closed, and futures markets will close at 1pm ET..”
We may, or may not issue forth Monday…prolly-though…
A series of numbers during today’s session could drive things up, down of sideways” – PMI flash, New Home Sales, and the Fed money report this afternoon. Tomorrow’s pre-open hoopdy will be Durable Goods.
For now, -239 at the open for the Dow at click-time.
News Scanner Results
Nutty as ever out there:
Fools on the Run file: Violent’ tornado strikes Jefferson City, Missouri, as storms kill 3 and cause extensive damage statewide. Like the dems haven’t stonewalled Trump appointments? GMAFB.
Following up to our Jakarta Bureau’s video Wednesday: Police say 7 died in Indonesia election rioting.
And a pun we can’t resist: “Exclusive: How cannabis industry CEO salaries compare with mainstream counterparts.” Could they be higher?
With the Memorial Day weekend at hand, we will spare you our usual rasher of “grab your wienies” lines…
Moron the ‘morrow..however…