To win the game you gotta play with the same rules they do. A home could be exempt of tax if it's owned by a charity or church. If you have a faculty that meets, prays, and worships in earnest it could be considered a church and tax exempt. Or if you offer free educational content on RUclips, you could qualify as an educational nonprofit as well. Anything the nonprofits own isn't subject to tax. Income, property, or gains.. Food for thought.
@@dustinmiller2775 I forget if that was an WEF, or IMF article but I definitely believe it's part of their 2030 plan. But just like I told Michael, play by their rules. Own nothing, but control everything. I own nothing but am in control of several businesses and trusts that do!
No. Read the mortgage paperwork. In a hyperinflation economy, the banks will call the mortgage due before they get too far into the hole. The borrower will need to pay the mortgage loan off with cash or by taking out a new loan at the current rate which will not be available. Thus, the banks will take the asset that the mortgage or loan is on. They are not going to bankrupt the banks for the little guy to win. The borrower is not in charge. The banks are getting close to doing this now. If the interest rate keeps going up, they will have to stop the bleeding.
This guy's head is not screwed on right. Dam the rule dude the house will not let you win. If you play their game, you will take a hit every time. If what I read in the book The Great Taking is true, the little guy is about to get sucker punched so hard his great grandkids are going to feel it.
My paperwork was fixed with no clause. My home is paid off but I looked at old paperwork. Taxes are what will take everything from everyone. Anything you pay taxes on will belong to the government.
Every American balances their checkbook and tries to make wise financial decisions. Sometimes there is not enough money for emergency situations so borrowing becomes necessary. Our government throws money away on stupid stuff like a kid in a candy store! We give money to foreign countries that hate us and laugh at us for our donations. No crisis is too big to throw US taxpayer money at. They need to tighten their belts just like the rest of us do!! My primary concern is how to grow my reserve which has been sitting duck since forever with zero to no gains, sure I know the risks of short term gains are much greater but if well managed one'd make a killing, am I wrong?
People believe their currency has the worth it does because they have no other option. Even in a hyper-inflationary environment, individuals must continue to use their hyperinflationary currency since they likely have minimal access to other currencies or gold/silver coins.
Inflation is gradually going to become part of us and due to that fact any money you keep in cash or in a low-interest account declines in value each year. Investing is the only way to make your money grow and unless you have an exceptionally high income, investing is the only way most people will ever have enough money to retire.
I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+ and I've netted over 2.8million.
Kindly share the details for reaching your advisor. With inflation negatively affecting my funds, I'm in search of a more lucrative investment strategy to optimize their performance.
Colleen Janie Towe covers things like investing, insurance, making sure retirement is well funded, going over tax benefits, ways to have a volatility buffer for investment risk. many things like that. Just take a look at her full name on the internet. She is well known so it shouldn't be hard to find her.
as someone who came from country that was effected with hyperinflation , to keep long story short, we had civil war and country was divided in multiple different countries. there is no hyperinflation without civil unrest or war
@freedomtalkmedia7310 doesn't happen overnight.. ot takes time. The difference is that once that snowball starts rolling, it is almost impossible to stop. And it only gets Biggers and Bigger over time
It can go both ways. Hyper inflation can happen before a civil war and be part of the pressure that kicks one off. During a civil war the money is worthless as a central bank controlling a fiat currency won't e recognized.
This is where CDBC will step in.CBDC will be introduced when the hyperinflation moment closes in. Next ,bankers, governements, businesses and private will receive either each a different CBDC, or the spending and conversion rules will be different for each sector. Rigged game 2.0 , and game over for private people and businesses. EU cbdc law foundation has been finalised. they are now in phase 2 of the cdbc rollout.
And they'll bring your current debt into the new system. More than anything debt is control mechanism for which you will not be set free from by hyper inflation. Money is fake so there is no actual risk involved to lender. More money can and will be printed from thin air in any amount desired.
Correct. And with 99% of the public uneducated and distracted by bread and circuses, the global central banking cartels will get this done without a whole lot of pushback.
Understand this and never forget: ANY ASSET with a deed, a title, or an account number is subject to observation, regulation, taxation, and even confiscation. Gold and silver IN YOUR POSSESSION is the only widely transferable wealth that isn’t subject to counter party risk. And before you say crypto blah blah blah, you are subject to whether there is even an internet, firstly, and then, if you believe you aren’t subject to regulation you are fooling yourself. If you don’t hold your wealth in your hands, YOU DON’T OWN IT!!
In the Weimar Republic of the 1920's bankers were some of the first to flee the country as people wanted to pay their debts with almost worthless currency. According to the account I read, many who found the bankers hiding out, paid off their loans. The people / banks that borrowed them the money were the ones that were wasted. Business owners and mortgage lenders (most mortgage loans of the period were of 7 years duration) that could find their bankers made out. We should learn from history!
This was caused by the FIRST WORLD WAR, then the treaty of versailles, a terrible STUPID mistake by FRANCE, note France had a ROTTEN corrupt government and the Allies , they caused this, also caused the rise of the Nazis and WW2. Well in much later years it helped formed the Common Market then the European Union. All of these events were started by the First World War, where the old system collaped
My great grandma was in Germany at the time and she fled for Poland to survive. So what she could pay back her loans if she could not afford food. Explanation here is super misleading. I also lived through hyper inflation in Poland. Totally misleading.
Good video. Probably the most important thing you said is that inflation is money printing. Mainstream keep pushing the idea that inflation is rising prices when in fact they are the result of inflation not the cause.
@@InvestwithWesleywe had the dollar fall more in the last month than the Fed’s YoY target. How is this acceptable and how is everyone just okay with it?
If the economy expands faster than the money printing, then you don't have inflation. You're too focused on the fact that there is printing; without understanding that it is healthy to have an expanding currency set alongside an expanding economy.
@@ShorlanTanzo The fiat currency system is a debt based ponzi scheme which must keep expanding or it dies. There comes a time when the debt becomes unsustainable and servicing repayments on the debt requires creating more and more debt until the system implodes. It would be similar to taking out a 2nd credit card to finance repayments on the 1st, then a 3rd card to pay interest on the first two etc. etc. There's a reason why every debt based fiat paper currency in the history of humanity has a 100% failure rate.
The most common coins used in Ancient Rome was the denarius and it was made of silver and not gold. And it was the denarius that they kept decreasing the amount of precious metal in.
Silver was always the “people’s” money, a denarius was commonly viewed for many generations as a fair payment for a full days wage. Silver is the government fiat bankers kryptonite, it’s the bank killer… hence why the establishment goes to such great lengths to keep silver out of the minds and hands of the masses and controlled by the established financial and industrial class.
So coins with grooves on the edges was brought around because back then every one that touched the coins made out of rare metal would file just a little off every coin till the weight got really off then no one would accept the coin any more
This is why you should only borrow money on appreciating assets that produce income. Rental property or a business. Never borrow on depreciating assets, unless they produce an income such as a piece of machinery (bulldozer) or a tractor trailer that has a utility that people will pay for.
Your wages dont rise much during hyperinflation. The process is just too fast for companies to keep up. That's why everyone loses. The hamburger will go from $10 to $100. Your wages will go from $100 per a day to $110 per a day. So that burger will essentially cost you all your earnings. The only way to beat hyper inflation is to protect the money you earn BEFORE the inflation. By converting that money into other forms that can hold value. Then trading in those forms during or after the inflation when you need to buy something.
I read that during that time women met men at their lunch break to take their pay and buy things of value so as not to lose that value by the end of the day. People sitting in cafes paid different prices for their cups of coffee as they bought them. A doctor had his bank send him a postcard telling him they were closing his account since the stamp was worth more than his savings....the stories go on
I have a friend who has zero debt, a ton of $$$ in the bank, a ton of $$$ in his 401k and who knows how much $$$ in physical cash. I've been stacking since 2008 and I used to talk about PM's a lot, but no one wants to hear it. He's so tied to the fiat USD mentality he won't diversify into metals. I fear he will lose most of his net worth when the SHTF. I did get him to buy 300 oz. of silver once though, so at least he will have that to fall back on.
@@JesusOurKing Stocks only work after an economic collapse. They are a reflection of the economy's current state and the people's trust in it. So if hyperinflation is destroying an economy, stocks will tank. If you hold those stocks, then they will recover after the hardship. I suggest having multiple holdings. Stocks, metals, and crypto mix. When 1 fails, the others thrive typically.
@@JesusOurKingmake sure you get hands on those when crisis hits.... in crypto common joke is withdrawals are blocked when times are turbulent up or down, so while things are no good, bank run prevention is a thing and important factor how that company will handle it. 1mn$ worth stocks wont help if ya cant use them when need them most.
Since the debt crisis could unleash carnage on the stock market leading to economic downturns. We need to be prepared for potential market volatility. how can I secure my $600K stock portfolio against declining?
Concentrate on two main objectives. First, keep yourself safe by knowing when to sell stocks in order to limit losses and maximize gains. Second, get ready to benefit from market changes. I advise consulting a coach or other professional for advice.
I talk a lot about how important it is to have an advisor.This kept me afloat and increased my $450,000 portfolio by 48% in just 4 months.They have strategies that are tailored to your long-term goals and your desired financial situation.
My advisor is Vivian Carol Gioia, a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
I just looked her up on the internet and found her webpage with her credentials. I wrote her outlining my financial objectives and planned a call with her.
This is in law regardless of capitalist motives. You agree to pay a fixed sum. Just because the sum no longer has the buying power it once had does not entitle the lender any extra compensation. It is the way the Americans cookie crumbles.
Yeah there is some Canadian dude with a channel saying that the US public would be subject to a new currency rated for the value of the debted asset(s). I was like dude you like in Canada why are you flexing for the banks and fed in the US? Nolan Matthias channel. Very weird.
True. People in Venezuela take out loans all the time. They know that hyper inflation goes up by the month and whatever they're buying will be way cheaper in 6-12 months than when they took out the fixed loan originally. An ounce of silver in Venezuela buys you 3 months of food. An ounce of gold there will buy you a house.
I think the problem we’re facing is the stock market is rising much faster than wages. If wages start to balance with inflation as the stock markets come down unemployment is the next step. Let’s face it. The dollar is not designed as a means of currency exchange but rather as a wealth transfer system to increase the gap between the rich and the poor.
The problem is not rising. The problem is by design. Cattle made of people has to believe in stock and bring money to sign off the bubble of currency. The reasoning for signing off is invisible hands of market. People who are not cattle understand that every social process is managed: monitored and controlled. Economical processes are a subset of social processes. So naturally the theater of stock market is managed as well. That is how Russia with real (!) 2 % of world economy copes with 51 countries formally representing more than fake (!) 50 % of world economy. You cannot defeat real thing with a fake.
Fiat currency was designed to let the government gain infinite value from the people while leaving the people destitute. That's why a central bank is 90% of communism. Once that is established the rest just happens.
Inflation, bank collapse, severe drought in the agricultural belt, recession, food shortages, diesel fuel and heating oil shortages, baby formula shortages, available automobile shortages and prices, the price of living place.
Government policy has thrown the future under the bus for decades. The day of judgment is near. I predict an 80% drop in the stock market. Investors will abandon stocks in favor of real estate. There will be no money in banks... You must devise a strategy for survival.
I agree. I have pulled in more than $435k since 2020 through my advisor. It pays off more in the long run to just pick quality stocks and ride with those stocks.
Fiduciary counselors have access to exclusive information and data sources that aren't available to the broader public. By heeding the guidance of my fiduciary counselor *Camille Alicia Garcia* ,I managed to generate earnings exceeding $820,000 during the third and fourth quarters of 2022. I have high expectations for continued success.
After the Hyperinflation in the Weimar Republic the mortgage loans were partly reevaluated by law so don't expect to come out debt free after such an event.
Precisely, even though the largest borrower is the goverment they're in control of the money so they essentially don't have to pay it back but they can still make you pay back your share and even if they don't your actual lender i.e bank will.
If you are lucky enough to have income rise anywhere near the inflation rate you'll have to contend with income tax. Remember those idiots screaming tax the rich? When you're making half a million a year and you can't afford bread the government will still want their share. (All of it).
Do more research. Everybody knows the publicly available statistic fact: The best and safest asset to move your money is Bitcoin and Ethereum. They will continue digging up more gold and lead… but there will never be more than 21 Million Bitcoins EVER available. BTC is deflationary and its value will only continue to increase as it’s been for the last decade. That’s why the biggest asset manager in the entire World, BlackRock is all in on Bitcoin.
While I agree with most of what you said, I definitely disagree with the idea that pay has increased to meet inflation. From what I see daily, pay is way behind inflation and has been for decades. The percentage of a single income needed to survive or even be considered “working poor” , has been surpassed to the point that the idea of owning a home in your 20s is a pipe dream. My father bought his home at 27 years old and we lived well enough to have food, savings, and take vacations. My mother stayed home to raise the kids. He didn’t have a job that was particularly well paid. I don’t even know if this is possible in todays economy without multiple incomes.
I spent years as a financial advisor. People's poor spending habits are far more of a problem than their wages. Incomparable really. I would consistently meet people making good money with 0 saved. Worse, they owe on cars and credit cards, student loans for unused degrees... There was a sweet spot where people earning in the middle were better with money than d.i.n.k.s. with high income. Stack lead and silver. Learn homeopathic remedies, learn to grow and harvest off the land.
@@superwhitt21 there’s definitely a lot of that as well. that being said, I don’t think a financial advisor would be having too many conversations with working poor. By that I mean making the bills only and no money for really anything but surviving. Just making the bills. Also, my perspective may be different than others, because I live in an area where it’s pretty expensive to live.
The problem with borrowing money to buy a rental property is the assumption that you’ll always collect the rent to pay the mortgage. The issue I’ve had is that 50% of my renters either don’t pay rent on time or don’t pay rent for months. Then you have the overhead of hiring an attorney and court costs to get the dead beats out. You can go months with no rental income. You still have to pay the mortgage, the insurance, the taxes and the up keep. There’s a big gamble there. Best to buy rentals in full cash sale. Have cash reserves to pay the taxes and insurance.
Yup. I know a wealthy guy who bought a bunch of rental property for some residual income. After a few years of dealing with the headache, he sold it all and just bought bitcoin.
Rental properties have become a worse and worse deal as time has gone on. Look what the rent moratorium for C19. The govt can just come in and say “you now have to pay to house people”
@@jth_printed_designs yea, I went two years without rent because of that ‘moritorium’. The government bastards cost me thousands and I could do nothing about it. The one couple broke back in the house I was finally able to get them evicted from. Mind you they had two new cars, thousands in shoes. Who collects $14000 in shoes? These people did. When they broke back in they stole the carpet, busted windows and lights and stole whatever they could away with. They even crawled onto the roof and tore up shingles. Who does that? The neighbors watched and did nothing. They did this the day after they were evicted. All within a few hours. I pressed charges and they split town. There’s a warrant out for their arrest but I doubt anything comes of it. The cops don’t care, the legal system doesn’t care. It’s all a monstrosity that should be gutted and redone. Im so pissed with all these people.
Thank you very good investment advice. May I ask you about what an older person with no debt, owned home and just a pension can do to make sure they survive the next 5 years?
What Risk when a home is involved? My Step Dad took out a 50,000 dollar loan on the home then died 6 years into the payments. The payments have gone up not due to inflation but mostly from property taxes going up and or the home owners insurance, company went out of business and a new one was hired by the bank. From about 425 a month to just over 700 a month.
I get the compensation for risk of not getting paid back and loss of spending power, but only if the lender is actually using the money have they on hand. That is not what actually happens with banks though.
It's like we created a system where a good majority of the population has a job of "investing." Nothing actually gets produced by these people. We just see them as stewards of a their industry. All they do is offer incentive for OTHERS to produce... Which can be completed in many ways other than adding a mouth to feed that doesn't actually produce anything.
Unfortunately, there's one serious flaw in this thinking. Most mortgages have a fine print, in which the lender can call the loan on a mortgage, demanding payment in full before the borrower has enough to pay it off. They can do this, even if the borrower is up on all his/her payments. It's a safeguard for the lenders in such a situation. Even in the great depression, which was not a hyperinflation situation, countless people lost their homes.
The banks will figure a way to save 5hemselves by convincibg the government to convert debt into the new currency that always pops up during hyper inflation. So it's best to pay that debt as much as possible if your government is rumored to make a new cash system.
Thats very smart. People think that bankers and corrupt political type didn't think of what might happen if we hyper inflated or moved to a new currency. Of course they did and they have snakes and pointy sticks waiting in the hole for those that are foolish enough to believe they didnt to fall into.
...or your tenants trash the place, or there's a pandemic so you're not allowed to kick tenants out for not paying. Stuff happens, so you need to keep an emergency fund.
As Voltaire once quipped, "All Fiat currency eventually reaches its intrinsic value, which is Zero". Does the phrase "Not worth a Continental" ring a bell?
I fixed my interest for my car. Well before the interest rate climb. I even told the financier that interest rates were going to rise even after our central in Australia said they wouldn't. Working for a bank you learn a lot about how irresponsible borrowers are.
4 месяца назад
In theory inflating debt away sounds fine and dandy, I’m tempted to run out and buy a new house, but that window of opportunity has closed because the new home's value has appreciated x3 and my future new house wouldn’t be income producing because i’d be living in it, all though I would rent my existing house which would cover half the new home’s mortgage! I’m on the fence because I wouldn’t want to find myself in a house upside down in value with higher interest rates of today-with a looming collapse in restate or the dollar! I so-so love leaving debt free and within my means! Thanks for the awesome video!
Im really surprised you didnt go into the fact that asetts are the only way to survive inflation, silver gold & real estate. When wages increase, and you keep your base line mortages you can make money on the rents, thats really why people are holdeling thier homes. Inflation is not being fixed by increasing rates, expecially when the Fed keeps printing! Nevermind... you did touch on this too :) good job!
Good advice but you forgot the essentials, food, water, a way to protect yourself, lots of ammo and a good network of people. If the USD goes hyperinflationary, the SHTF.
Gold? Gold is up around 0% in the last 10 years. If you take into account inflation over those 10 years, I guess that means it is actually down around 75% or so?
You obviously don’t know how the mortgage market works. Banks don’t hold the debt. They sell off the note/mortgage and the primary buyer is Fannie/Freddie.
Great video two thumbs up👍👍. My question is when the banks steal the depositors money and the FDIC pays off the derivative market. Is there some sort of scam where the bank credit card market which is probably $1 trillion can come after the real estate homeowner for the balance. even though technically, it’s a unsecured debt. After all the Dodd Frank law were the bankers can steal their depositors money, including retirement, and investment. Is there any hidden snare for the three big investment houses example black rock, State Street, I’m drawing a blank on the third one, but I know it.
That is called a 'bail in' where the banks steal your deposits for their nefarious casino like purposes. Either keep it under then matrice or in a bank that is Too Big To Fail. In Australia, First $ 200k is underwritten by gov.
Variable rates are normal for morgages in many countries in Europe. While in the USA fixed ones are refinanced periodically. Someone could do a video on how these things are geographically.
Yeah 5 year max to lock in a loan in Australia which we do. Hard to pay off a loan at Venezuela interest rates when hyperinflation eventually comes which it will, but the bank can call in your loan anytime they want…
I had a thought it is this ,in the case off U.K. which went all in with X.R.P.my thinking would be the gains made on this coin should make your debt go away after so many year’s as the coin increases the wealth of the country’s involved. I hope this is clear enough .
Not if you have a fixed mortgage with no call provision. Which is the only type of mortgage I would contract. I would also require a no prepayment penalty clause. People think their banker is their friend….
From the immediate start, this video gives a false datum. A bank lending you money, when it is done under the fractional reserve system, is NOT deoriving themselves of the use of that money. The money is CREATED at the moment of borrowing, as long as the bank has a certain fraction of the amount in reserves. Thus there is ZERO risk to the bank. In fact, the signed loan agreement becomes a tradable asset.
His last point is the key one. The reason why the federal government is not worried about the debt, Is that they have the power of the printing press. When the debt becomes unpayable, they just continued to print money until it all becomes worthless. This is why I think that bitcoin and all the others will become illegal soon. The government does not want you to be able to transfer money out.
I have two credit cards that we rarely use. Both have locked interest rates through my credit union. I would never open an account with a floating interest rate. You're correct,, very bad!
The inflation that will destroy the currency has already been created. It is when markets fail and everyone tries to liquidate their collateral that hyperinflation occurs and it is game over.
aint that excellent timing like 1929 for billionaires with cash around to scoop up huge chunks of wealth with -90% discount of normal price.... maybe high volatility is easier to happen in already higher inflation times. To create inflation, governments very often did "QE" with excuse to stimulate economy... .well most of that money went straight to wallstreet and biggest corporation wealth, suggesting this kind of scheme is likeliest to happen again. Companies with any buffer and solid cashflow products will survive over this period. Those zombies with no buffers and lived like beggars with extreme growth/bonus mindset, will collapse overnight.
Real wages in the US have only increased 0.7% from 1973 to 2022, according to the latest data available. Maybe wages would increase quicker in a hypothetical hyperinflationary event, but as of the last 50 years they have remained flat.
It’s a contract. If a mortgage is fixed interest, both parties agree to the contract and accept the risk as adults. The bank can’t change it later, nor can the customer. That’s a contract. But in hyperinflation, a government may step in and say, ‘well, let’s tack another 100% per year onto your rate…banks are too big to fail, you know.
I disagree. Why would the Gov choose that option to upset it's ppl when it could simply issue loss money to the bank like they are doing currently with Gov bonds
To add to the complexity population has always grown and so inflation was natural. But what happens when you have population growth falling and in more countries becoming negative. Migration will then be necessary to sustain the system, in an inflationary mode. Also how does the new currency affect global trade, when other countries might not have the same policy as the US's and if their currency is based on a basket of commodities. Does the debt with other countries suddenly erase or can the other country request payment in commodities. In an isolated system it is easy to play with the currency but in globalized world not quite so easy. I've never liked the play on currency so have always exchanged money for assets, like land and precious metals, held in trust or anonymously.
I think they will take option 3, the central bank cancels their own debt whilst recalculating individual homeowner loans to ensure repayment. You have made the assumption that they would play equally by the rules but real financial history shows that they never do. Great video but it is based on theories and assumptions not historical facts.
The money didn't exist in the first place, your just paying a surcharge for the paperwork and the bankers. Old systems used deposits as collateral and back money by assets such as gold. Interest is simply a tax to regulate prices. If there was no cost to lender eg 0% people would buy everything driving up the prices. Owe did something like that happen recently
No, not no matter the price because prices will come down so you will lose equity if you buy to high. But converting any variable debt to fixed interest is a great step as well as buying assets of any kind, properties, businesses and franchises, or even stocks
Yes, in Poland over 30 years ago, government cuts four zeros so 1000 zl be came 1 zł Many people saying 1 BTC will worth a million USD, but maybe enough to buy a car? Thanks
Why would the ONLY way out of credit card debt during a hyperinflationary event be to default? Wouldn't the value of the debt be inversely proportional to the amount of money in the system? And, if so, wouldn't that mean that a hyperinflationary scenario would put the debt at the limit of the function, effectively rendering the debt null and void?
I'm guessing that the same banks that pay fractional fines (see: cost of doing business) each year for rigging every market under the sun have thought this through already.
@@InvestwithWesleyat best either the cost of their product goes up and they lose volume or the price goes down and they gain volume. In the end that volume will decay as consumers wages decay faster than inflation.
@@benstr8156depends on the kind of bankruptcy. It's very difficult to get chapter 7 these days.most courts will force you into chapter 13.chapter 13 doesn't reduce your amounts owed so much as freezes interest and forces a repayment plan on debt.
What gets me is that I'm not sure there's a viable non-first currency. Gold isn't practical as currency because it's too hard to authenticate (see gold testing videos) for casual transactions. Banking would create the same inflation pressures as fiat too Bitcoin, etc is too volatile. I can't collect rent in a currency that can go +/- 15% in days/weeks.
I agree and have been considering this as well. I believe BTC is the final solution but we're not there yet. Maybe something like the Swiss Franc or other foreign currency that's backed by gold oil or another commodity
Prices have actually been going up for 3 decades now. People have been complaining over COL for that long, and thereby their wages did not go up otherwise they not complain constantly up to this point. If wages are not as fast as rest of inflation, then it is pointless.
@@InvestwithWesley problem is the assets are they has been going up so fast like RE. Stock market has been proven to be rigged. Just look at what hap with GameStop. I never trust the “markets”.
@@MbisonBalrogI think you're mixing timelines. Assets move up long term, and move up higher with inflation. When the FED fights the inflation, prices go down in the short term. GME is not rigged, it was a terrible company to invest in with almost zero profit but turned into a very popular stock due to a bunch of people on Reddit. No proper investment advisor would have ever recommended you buy into GME. I know I never recommended it to any of my clients. For further proof of what I'm saying just look at the SP 500 since COVID. All that inflation pushed us up so high and sure we're in a bit of a downturn right now but look how high we still are even compared to the downturn. The games are not rigged, only people aren't taught how to play
@@InvestwithWesley FED did not fight inflation for long time. Assets continue rise even after GFC with maybe a short downturn. If you can’t afford basics forget about investing/speculating plus it was asset inflation that preceding all else these past decades. Only way for this generation to buy in was to buy in instead of learning math in middle school cuz that when they needed to start.
The banks will "simply" re-assign the new rates to all the borrowers, instead of your 2%, it will be 200% - because there are small fonts in the bottom of the page which allow banks to do so. The system will always fuck an individual.
That's not how it works. Your mortgage is a binding contract and sure the big wigs don't play by the same rules but never in history has a fixed mortgage been "simply reassigned"
@@InvestwithWesley never in history, US bankindlg industry seen triple-quadruple hyperinflation numbers...in your video you are assuming that in extraordinary circumstances banking will apply regular measures. Will never happen.
Housing prices fell by 67% at the end of 1932 from the peak of 1929. So during hyperinflation it is not that simple to buy a house with some debt. A typical property bought in 1920 would have retained only 56% of its initial value in nominal terms two decades later. And you've got the risk of the renter who can't pay the rent. Life is not that simple ;-)
Life is simpler when the Central banks continue to juice the stock and property markets. In 1929 they took the 'punch bowl' away which caused the Depression. Bernanke did his PhD on this so was well aware of the consequences.
During this period of depression in Montreal, apartments were no longer rented for money, they rented just to be surely that it was heated and many tenants could not even pay for coal to keep the temperature above freezing! They then burned the furniture and kitchen cabinets for heat!
Homes are a depreciating asset. You need to pay for maintenance and taxes on the property and eventually replace the whole thing. It's much slower than a vehicle, but it doesn't build appreciating value. The land under it may build value due to supply, but homes do not
All of that is dependent on the purchase price. Buy @ the top and you face significant risk to capital. Just look @ recent history=had you purchased in 2019 you would have @ least doubled your $ in most areas by now. But had you purchased in 2007 you would have been underwater until at least 2018.
only way to do ok is have a form of money outside of the bad currency. gold ans silver are obvious. i lived i. ecuador when it collapsed. if u had gold or dollars u actually thrived
Except socialist states like CA grants tenants years of rent free living while the homeowner still owes the mortgage and property taxes. Also precious metals are heavily suppressed in the future paper mkt. SBF should preside over precious metals trading.
I recommend 2is1 - it's a youtube channel for new gold & silver investors - he doesn't push anything, just gives solid no nonsense advice for small timers. and no, I'm not connecdted to him or get a commission or anything
Basically you have paper/bullion. If you do paper make sure it’s allocated. If you do bullion make sure it’s secure. Be aware the IRS defines precious metals as ‘collectibles’ under the tax code so familiarize yourself with the code.
Impossible to do any more but when you are able to get loans, with 0% interest you are better off still.. in my case I purchased both my cars in 19 seeing where things were going both cars are at 0%.
What if the cash flow gets eaten up by the myriad expenses you incur in order to hold on to the asset? I mean, if you don’t pay the property taxes, you’ll find out who the real owner is.
The VERY short answer is use case, a car has a use case of only a few years before it is in need of expensive repairs/replacements. A home lasts much longer into 2 or 3 decades before needing expensive replacements or repairs. Technically they both "depreciate" do to use. If you've ever owned a rental you can do this for taxes. But because of limited home supply for increasing demand home prices rise. So on paper you're Making money in equity while also losing money to depreciation
There is one problem with option 1 which you mentioned.. What is the lender going to do with the worthless currency the borrower is paying them? somebody will.lose and those losses will have to born by multiple people so it will affect the whole chain not just that one lender. The central banks won't sit idle as the currency is falling. They will raise interest rates to prevent the fall of the currency and therefore increasing the interest payment as well in correlation to the amount of inflation.
That would work except the government increases liquidity faster than the FED removes it. And that liquidity(debt bonds) carries an interest coupon eating a greater amount of said liquidity as rates go up. That circle jerk will be exposed in the currency markets and acted upon @ some point.
@@Newlinjim liquidity does not come from the governments but the federal reserve. As long As people are buying government bonds the federal reserve will keep printing but only when the credit rating really goes under and bond buyers start demanding higher rates or altogether refuse to lend then its Armageddon.
Most if not all debts payable have a currency type such as the US Dollar and denomination amount such as $50,000, This is in the contract. If the government want's to set up a new currency this would not change the already existing contracts that state a currency. The government may try this but there would be tough legal battles over it and many people would refuse to go by the new rules that came after the fact and this could lead to a large scale civil uprising possibly a civil war if this is attempted and enforced. Even if the government declares the old currency worthless it is still the only accepted payment in most loan contracts.
Investors sent stocks soaring on Tuesday, cheering the October Consumer Price Index report that showed inflation slowed more than expected last month.What is the greatest strategy to take advantage of the current bull market while I'm still deciding whether to sell my $300k worth of stocks?
When your property taxes are $485,000 per year, a paid for house won’t matter. They WANT YOU HOMELESS.
To win the game you gotta play with the same rules they do.
A home could be exempt of tax if it's owned by a charity or church. If you have a faculty that meets, prays, and worships in earnest it could be considered a church and tax exempt. Or if you offer free educational content on RUclips, you could qualify as an educational nonprofit as well. Anything the nonprofits own isn't subject to tax. Income, property, or gains..
Food for thought.
@@InvestwithWesley i.e, You will own nothing and be happy. 🤨
@@dustinmiller2775 I forget if that was an WEF, or IMF article but I definitely believe it's part of their 2030 plan.
But just like I told Michael, play by their rules. Own nothing, but control everything. I own nothing but am in control of several businesses and trusts that do!
In Australia the home is tax Capital gains tax free - a main reason why our home prices are near the most expensive in the world.
facts!
No. Read the mortgage paperwork. In a hyperinflation economy, the banks will call the mortgage due before they get too far into the hole. The borrower will need to pay the mortgage loan off with cash or by taking out a new loan at the current rate which will not be available. Thus, the banks will take the asset that the mortgage or loan is on. They are not going to bankrupt the banks for the little guy to win. The borrower is not in charge. The banks are getting close to doing this now. If the interest rate keeps going up, they will have to stop the bleeding.
Thank you for sharing that knowledge, I thought there was a catch.
I didn’t see any call features in any mortgage paperwork I have ever signed
This guy's head is not screwed on right. Dam the rule dude the house will not let you win. If you play their game, you will take a hit every time. If what I read in the book The Great Taking is true, the little guy is about to get sucker punched so hard his great grandkids are going to feel it.
The 100-year anniversary of 1929 is all most here. Will history repeat itself again? When a person forgets history, he will be dom .
My paperwork was fixed with no clause. My home is paid off but I looked at old paperwork. Taxes are what will take everything from everyone. Anything you pay taxes on will belong to the government.
Every American balances their checkbook and tries to make wise financial decisions. Sometimes there is not enough money for emergency situations so borrowing becomes necessary. Our government throws money away on stupid stuff like a kid in a candy store! We give money to foreign countries that hate us and laugh at us for our donations. No crisis is too big to throw US taxpayer money at. They need to tighten their belts just like the rest of us do!! My primary concern is how to grow my reserve which has been sitting duck since forever with zero to no gains, sure I know the risks of short term gains are much greater but if well managed one'd make a killing, am I wrong?
People believe their currency has the worth it does because they have no other option. Even in a hyper-inflationary environment, individuals must continue to use their hyperinflationary currency since they likely have minimal access to other currencies or gold/silver coins.
Inflation is gradually going to become part of us and due to that fact any money you keep in cash or in a low-interest account declines in value each year. Investing is the only way to make your money grow and unless you have an exceptionally high income, investing is the only way most people will ever have enough money to retire.
I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+ and I've netted over 2.8million.
Kindly share the details for reaching your advisor. With inflation negatively affecting my funds, I'm in search of a more lucrative investment strategy to optimize their performance.
Colleen Janie Towe covers things like investing, insurance, making sure retirement is well funded, going over tax benefits, ways to have a volatility buffer for investment risk. many things like that. Just take a look at her full name on the internet. She is well known so it shouldn't be hard to find her.
max out those credit cards on real hard assets and dont pay the banks back. payback for 2008 bailouts in my opinion!
as someone who came from country that was effected with hyperinflation , to keep long story short, we had civil war and country was divided in multiple different countries.
there is no hyperinflation without civil unrest or war
100%
I'm sorry you had to go through that, and are stuck repeating your past with our economic storm rn. Stay positive, stay safe!
There is one happening now or just happened in Argentina and it didn't result in that
@freedomtalkmedia7310 doesn't happen overnight.. ot takes time. The difference is that once that snowball starts rolling, it is almost impossible to stop. And it only gets Biggers and Bigger over time
It can go both ways. Hyper inflation can happen before a civil war and be part of the pressure that kicks one off. During a civil war the money is worthless as a central bank controlling a fiat currency won't e recognized.
So gold , silver bars , 2 years of food , cash , and ammo and medicine. What else should I get ???????
This is where CDBC will step in.CBDC will be introduced when the hyperinflation moment closes in. Next ,bankers, governements, businesses and private will receive either each a different CBDC, or the spending and conversion rules will be different for each sector. Rigged game 2.0 , and game over for private people and businesses. EU cbdc law foundation has been finalised. they are now in phase 2 of the cdbc rollout.
And they'll bring your current debt into the new system. More than anything debt is control mechanism for which you will not be set free from by hyper inflation. Money is fake so there is no actual risk involved to lender. More money can and will be printed from thin air in any amount desired.
Correct. And with 99% of the public uneducated and distracted by bread and circuses, the global central banking cartels will get this done without a whole lot of pushback.
In Venezuela politicians and their friends got an exchange rate of 1 to 10 while civilians had 1 to 10000
Do you own qnt?
YOUD STILL BE A POOR REGARDLESS
Understand this and never forget: ANY ASSET with a deed, a title, or an account number is subject to observation, regulation, taxation, and even confiscation. Gold and silver IN YOUR POSSESSION is the only widely transferable wealth that isn’t subject to counter party risk. And before you say crypto blah blah blah, you are subject to whether there is even an internet, firstly, and then, if you believe you aren’t subject to regulation you are fooling yourself. If you don’t hold your wealth in your hands, YOU DON’T OWN IT!!
The whole point of blockchain is that there is a digital trail. These people are fooling themselves in thinking it is beyond government control.
In the Weimar Republic of the 1920's bankers were some of the first to flee the country as people wanted to pay their debts with almost worthless currency. According to the account I read, many who found the bankers hiding out, paid off their loans. The people / banks that borrowed them the money were the ones that were wasted. Business owners and mortgage lenders (most mortgage loans of the period were of 7 years duration) that could find their bankers made out. We should learn from history!
This was caused by the FIRST WORLD WAR, then the treaty of versailles, a terrible STUPID mistake by FRANCE, note France had a ROTTEN corrupt government and the Allies , they caused this, also caused the rise of the Nazis and WW2. Well in much later years it helped formed the Common Market then the European Union. All of these events were started by the First World War, where the old system collaped
True on the tax issue, because the value of your taxes could be more than you could possibly pay
The whole world is currently a Weimar Republic
@@Xxxweldyxxxthanks to the same people
My great grandma was in Germany at the time and she fled for Poland to survive. So what she could pay back her loans if she could not afford food. Explanation here is super misleading.
I also lived through hyper inflation in Poland. Totally misleading.
Good video. Probably the most important thing you said is that inflation is money printing.
Mainstream keep pushing the idea that inflation is rising prices when in fact they are the result of inflation not the cause.
Exactly, price increases because the value of the currency decreases due to printing
The MSM pushes these ideas... Because if everybody knew the truths about money, nobody would work for it
@@InvestwithWesleywe had the dollar fall more in the last month than the Fed’s YoY target. How is this acceptable and how is everyone just okay with it?
If the economy expands faster than the money printing, then you don't have inflation. You're too focused on the fact that there is printing; without understanding that it is healthy to have an expanding currency set alongside an expanding economy.
@@ShorlanTanzo The fiat currency system is a debt based ponzi scheme which must keep expanding or it dies. There comes a time when the debt becomes unsustainable and servicing repayments on the debt requires creating more and more debt until the system implodes.
It would be similar to taking out a 2nd credit card to finance repayments on the 1st, then a 3rd card to pay interest on the first two etc. etc.
There's a reason why every debt based fiat paper currency in the history of humanity has a 100% failure rate.
The most common coins used in Ancient Rome was the denarius and it was made of silver and not gold. And it was the denarius that they kept decreasing the amount of precious metal in.
Silver was always the “people’s” money, a denarius was commonly viewed for many generations as a fair payment for a full days wage. Silver is the government fiat bankers kryptonite, it’s the bank killer… hence why the establishment goes to such great lengths to keep silver out of the minds and hands of the masses and controlled by the established financial and industrial class.
So coins with grooves on the edges was brought around because back then every one that touched the coins made out of rare metal would file just a little off every coin till the weight got really off then no one would accept the coin any more
@@CaptCrunch106apparently silver is the cheapest commodity on the planet. IMHO that is because the USD price is manipulated in futures markets.
@@DavidAKZ is common knowledge the comex manipulates silver and gold price thanks to jp Morgan. Two of their comex traders just got prison sentences.
This is why you should only borrow money on appreciating assets that produce income. Rental property or a business. Never borrow on depreciating assets, unless they produce an income such as a piece of machinery (bulldozer) or a tractor trailer that has a utility that people will pay for.
Exactly! Spend money to make more money
Rental properties bring lots of government regulations, deadbeat tenants and can be illiquid. Avoid!
Your wages dont rise much during hyperinflation. The process is just too fast for companies to keep up.
That's why everyone loses. The hamburger will go from $10 to $100. Your wages will go from $100 per a day to $110 per a day. So that burger will essentially cost you all your earnings.
The only way to beat hyper inflation is to protect the money you earn BEFORE the inflation. By converting that money into other forms that can hold value. Then trading in those forms during or after the inflation when you need to buy something.
I read that during that time women met men at their lunch break to take their pay and buy things of value so as not to lose that value by the end of the day. People sitting in cafes paid different prices for their cups of coffee as they bought them. A doctor had his bank send him a postcard telling him they were closing his account since the stamp was worth more than his savings....the stories go on
I have a friend who has zero debt, a ton of $$$ in the bank, a ton of $$$ in his 401k and who knows how much $$$ in physical cash. I've been stacking since 2008 and I used to talk about PM's a lot, but no one wants to hear it. He's so tied to the fiat USD mentality he won't diversify into metals. I fear he will lose most of his net worth when the SHTF. I did get him to buy 300 oz. of silver once though, so at least he will have that to fall back on.
What about just holding good security stocks during a major event? Is that an option?
@@JesusOurKing Stocks only work after an economic collapse. They are a reflection of the economy's current state and the people's trust in it.
So if hyperinflation is destroying an economy, stocks will tank. If you hold those stocks, then they will recover after the hardship. I suggest having multiple holdings. Stocks, metals, and crypto mix. When 1 fails, the others thrive typically.
@@JesusOurKingmake sure you get hands on those when crisis hits.... in crypto common joke is withdrawals are blocked when times are turbulent up or down, so while things are no good, bank run prevention is a thing and important factor how that company will handle it. 1mn$ worth stocks wont help if ya cant use them when need them most.
Here in Australia, you can only get fixed rate mortgages for a few years then they go variable.
Since the debt crisis could unleash carnage on the stock market leading to economic downturns. We need to be prepared for potential market volatility. how can I secure my $600K stock portfolio against declining?
Concentrate on two main objectives. First, keep yourself safe by knowing when to sell stocks in order to limit losses and maximize gains. Second, get ready to benefit from market changes. I advise consulting a coach or other professional for advice.
I talk a lot about how important it is to have an advisor.This kept me afloat and increased my $450,000 portfolio by 48% in just 4 months.They have strategies that are tailored to your long-term goals and your desired financial situation.
@@PhilipDunk Please can you leave the info of your investment advisor here? I’m in dire need for one.
My advisor is Vivian Carol Gioia, a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
I just looked her up on the internet and found her webpage with her credentials. I wrote her outlining my financial objectives and planned a call with her.
This is in law regardless of capitalist motives. You agree to pay a fixed sum. Just because the sum no longer has the buying power it once had does not entitle the lender any extra compensation. It is the way the Americans cookie crumbles.
Yeah there is some Canadian dude with a channel saying that the US public would be subject to a new currency rated for the value of the debted asset(s). I was like dude you like in Canada why are you flexing for the banks and fed in the US? Nolan Matthias channel. Very weird.
True. People in Venezuela take out loans all the time. They know that hyper inflation goes up by the month and whatever they're buying will be way cheaper in 6-12 months than when they took out the fixed loan originally.
An ounce of silver in Venezuela buys you 3 months of food. An ounce of gold there will buy you a house.
I think the problem we’re facing is the stock market is rising much faster than wages. If wages start to balance with inflation as the stock markets come down unemployment is the next step. Let’s face it. The dollar is not designed as a means of currency exchange but rather as a wealth transfer system to increase the gap between the rich and the poor.
The problem is not rising. The problem is by design. Cattle made of people has to believe in stock and bring money to sign off the bubble of currency. The reasoning for signing off is invisible hands of market. People who are not cattle understand that every social process is managed: monitored and controlled. Economical processes are a subset of social processes. So naturally the theater of stock market is managed as well. That is how Russia with real (!) 2 % of world economy copes with 51 countries formally representing more than fake (!) 50 % of world economy. You cannot defeat real thing with a fake.
I call that the Tetris effect.
@@TheRVSNJeffrey Epstein \ Maxwell cabal is a glimpse behind the theater curtain .
Fiat currency was designed to let the government gain infinite value from the people while leaving the people destitute. That's why a central bank is 90% of communism. Once that is established the rest just happens.
Inflation, bank collapse, severe drought in the agricultural belt, recession, food shortages, diesel fuel and heating oil shortages, baby formula shortages, available automobile shortages and prices, the price of living place.
Government policy has thrown the future under the bus for decades. The day of judgment is near. I predict an 80% drop in the stock market. Investors will abandon stocks in favor of real estate. There will be no money in banks... You must devise a strategy for survival.
I agree. I have pulled in more than $435k since 2020 through my advisor. It pays off more in the long run to just pick quality stocks and ride with those stocks.
@@maryHenokNft Mind if I ask you recommend this particular professional you use their service? i have quite a lot of marketing problems.
Fiduciary counselors have access to exclusive information and data sources that aren't available to the broader public. By heeding the guidance of my fiduciary counselor *Camille Alicia Garcia* ,I managed to generate earnings exceeding $820,000 during the third and fourth quarters of 2022. I have high expectations for continued success.
She appears to be well-educated and well-read. I ran a Google search on her name and came across her website; thank you for sharing.
After the Hyperinflation in the Weimar Republic the mortgage loans were partly reevaluated by law so don't expect to come out debt free after such an event.
Precisely, even though the largest borrower is the goverment they're in control of the money so they essentially don't have to pay it back but they can still make you pay back your share and even if they don't your actual lender i.e bank will.
@@TheGladiator189central banks as private institutions are in control of money supply.
Exactly, no escaping their debt obligation.
You owe you pay.
Banker Mafia wants their cut!
If you are lucky enough to have income rise anywhere near the inflation rate you'll have to contend with income tax. Remember those idiots screaming tax the rich? When you're making half a million a year and you can't afford bread the government will still want their share. (All of it).
Silver, gold, lead and land are the 4 best assets to invest in to survive hyper inflation.
Won't be able to keep your land when property tax goes up by 100000 percent.
@@charlebrownga that's what the lead is for.
@@plop55🎉
@@charlebrowngaThat's where lead comes into play, imho.
Do more research. Everybody knows the publicly available statistic fact: The best and safest asset to move your money is Bitcoin and Ethereum. They will continue digging up more gold and lead… but there will never be more than 21 Million Bitcoins EVER available. BTC is deflationary and its value will only continue to increase as it’s been for the last decade. That’s why the biggest asset manager in the entire World, BlackRock is all in on Bitcoin.
While I agree with most of what you said, I definitely disagree with the idea that pay has increased to meet inflation.
From what I see daily, pay is way behind inflation and has been for decades.
The percentage of a single income needed to survive or even be considered “working poor” , has been surpassed to the point that the idea of owning a home in your 20s is a pipe dream. My father bought his home at 27 years old and we lived well enough to have food, savings, and take vacations. My mother stayed home to raise the kids. He didn’t have a job that was particularly well paid.
I don’t even know if this is possible in todays economy without multiple incomes.
I spent years as a financial advisor. People's poor spending habits are far more of a problem than their wages. Incomparable really. I would consistently meet people making good money with 0 saved. Worse, they owe on cars and credit cards, student loans for unused degrees... There was a sweet spot where people earning in the middle were better with money than d.i.n.k.s. with high income. Stack lead and silver. Learn homeopathic remedies, learn to grow and harvest off the land.
@@superwhitt21 there’s definitely a lot of that as well. that being said, I don’t think a financial advisor would be having too many conversations with working poor. By that I mean making the bills only and no money for really anything but surviving. Just making the bills. Also, my perspective may be different than others, because I live in an area where it’s pretty expensive to live.
The problem with borrowing money to buy a rental property is the assumption that you’ll always collect the rent to pay the mortgage. The issue I’ve had is that 50% of my renters either don’t pay rent on time or don’t pay rent for months. Then you have the overhead of hiring an attorney and court costs to get the dead beats out. You can go months with no rental income. You still have to pay the mortgage, the insurance, the taxes and the up keep. There’s a big gamble there. Best to buy rentals in full cash sale. Have cash reserves to pay the taxes and insurance.
Yup. I know a wealthy guy who bought a bunch of rental property for some residual income. After a few years of dealing with the headache, he sold it all and just bought bitcoin.
Rental properties have become a worse and worse deal as time has gone on. Look what the rent moratorium for C19. The govt can just come in and say “you now have to pay to house people”
@@jth_printed_designs yea, I went two years without rent because of that ‘moritorium’. The government bastards cost me thousands and I could do nothing about it. The one couple broke back in the house I was finally able to get them evicted from. Mind you they had two new cars, thousands in shoes. Who collects $14000 in shoes? These people did. When they broke back in they stole the carpet, busted windows and lights and stole whatever they could away with. They even crawled onto the roof and tore up shingles. Who does that? The neighbors watched and did nothing. They did this the day after they were evicted. All within a few hours. I pressed charges and they split town. There’s a warrant out for their arrest but I doubt anything comes of it. The cops don’t care, the legal system doesn’t care. It’s all a monstrosity that should be gutted and redone. Im so pissed with all these people.
@@jth_printed_designsthat should have woke all the leveraged real estate ‘investors’ up.
I love a man with a good head on his shoulders! Thanks for this video brother. I wish you the very best.
Thank you very good investment advice. May I ask you about what an older person with no debt, owned home and just a pension can do to make sure they survive the next 5 years?
Precious metals so you can pay your property tax
It's all gambling.
What Risk when a home is involved? My Step Dad took out a 50,000 dollar loan on the home then died 6 years into the payments. The payments have gone up not due to inflation but mostly from property taxes going up and or the home owners insurance, company went out of business and a new one was hired by the bank. From about 425 a month to just over 700 a month.
I get the compensation for risk of not getting paid back and loss of spending power, but only if the lender is actually using the money have they on hand. That is not what actually happens with banks though.
It's like we created a system where a good majority of the population has a job of "investing." Nothing actually gets produced by these people. We just see them as stewards of a their industry. All they do is offer incentive for OTHERS to produce... Which can be completed in many ways other than adding a mouth to feed that doesn't actually produce anything.
Unfortunately, there's one serious flaw in this thinking. Most mortgages have a fine print, in which the lender can call the loan on a mortgage, demanding payment in full before the borrower has enough to pay it off. They can do this, even if the borrower is up on all his/her payments. It's a safeguard for the lenders in such a situation. Even in the great depression, which was not a hyperinflation situation, countless people lost their homes.
The banks will figure a way to save 5hemselves by convincibg the government to convert debt into the new currency that always pops up during hyper inflation.
So it's best to pay that debt as much as possible if your government is rumored to make a new cash system.
Thats very smart. People think that bankers and corrupt political type didn't think of what might happen if we hyper inflated or moved to a new currency. Of course they did and they have snakes and pointy sticks waiting in the hole for those that are foolish enough to believe they didnt to fall into.
I LIKE YOUR APPROACH-- VERY SIMPLE, CLEAR, STRAIGHTFORWARD.
Thank You For Explaining This Topic So Simple and Clear Will Be Paying All Credit Cards Off Soon Thanks Again.
Glad I could help!
You fail to mention the risk of owning rental property is making the payments if the property is vacant.
If you cant bear that liability you cant afford a rental property
...or your tenants trash the place, or there's a pandemic so you're not allowed to kick tenants out for not paying. Stuff happens, so you need to keep an emergency fund.
Five years ago I bought a new tractor with a 0% five year loan, sold it recently for what I paid for it. New are going for 35% more than I paid.
As Voltaire once quipped, "All Fiat currency eventually reaches its intrinsic value, which is Zero". Does the phrase "Not worth a Continental" ring a bell?
Yep I find it strange because it's essentially a law of nature that all un backed currency will fail
It would be nice to know the day and hour it goes belly up.
Finally a GREAT explanation of what would happen !!!!!!!! Nice work!
Glad you enjoyed it! Love the feedback!
I fixed my interest for my car. Well before the interest rate climb. I even told the financier that interest rates were going to rise even after our central in Australia said they wouldn't. Working for a bank you learn a lot about how irresponsible borrowers are.
In theory inflating debt away sounds fine and dandy, I’m tempted to run out and buy a new house, but that window of opportunity has closed because the new home's value has appreciated x3 and my future new house wouldn’t be income producing because i’d be living in it, all though I would rent my existing house which would cover half the new home’s mortgage! I’m on the fence because I wouldn’t want to find myself in a house upside down in value with higher interest rates of today-with a looming collapse in restate or the dollar! I so-so love leaving debt free and within my means! Thanks for the awesome video!
Im really surprised you didnt go into the fact that asetts are the only way to survive inflation, silver gold & real estate. When wages increase, and you keep your base line mortages you can make money on the rents, thats really why people are holdeling thier homes. Inflation is not being fixed by increasing rates, expecially when the Fed keeps printing!
Nevermind... you did touch on this too :) good job!
Lol I was reading this thinking to myself, "I could have sworn I did!" Glad you enjoyed it! Love the feedback!
Then your inflation tax turns into capital gains tax. Anyone sitting on cash gets screwed even harder. Inflation used to be a hidden tax.
Good advice but you forgot the essentials, food, water, a way to protect yourself, lots of ammo and a good network of people. If the USD goes hyperinflationary, the SHTF.
Gold? Gold is up around 0% in the last 10 years. If you take into account inflation over those 10 years, I guess that means it is actually down around 75% or so?
@@chingron try all time high last three years in a row. With math like that you probably should stay away from gold! (Or business altogether)
The Weimar Republic is becoming increasingly relevant in multiple different ways
One can have a fixed rate mortgage; however, property tax and home insurance will rise.
So I shouldnt be in cash? U should max out all available good debt? are treasuries good debt? am thinking not.
Banks will change the rules you won’t get away with paying off a house with inflated money once it reaches a certain point
You obviously don’t know how the mortgage market works. Banks don’t hold the debt. They sell off the note/mortgage and the primary buyer is Fannie/Freddie.
Great video two thumbs up👍👍. My question is when the banks steal the depositors money and the FDIC pays off the derivative market. Is there some sort of scam where the bank credit card market which is probably $1 trillion can come after the real estate homeowner for the balance. even though technically, it’s a unsecured debt.
After all the Dodd Frank law were the bankers can steal their depositors money, including retirement, and investment. Is there any hidden snare for the three big investment houses example black rock, State Street, I’m drawing a blank on the third one, but I know it.
That is called a 'bail in' where the banks steal your deposits for their nefarious casino like purposes. Either keep it under then matrice or in a bank that is Too Big To Fail. In Australia, First $ 200k is underwritten by gov.
Variable rates are normal for morgages in many countries in Europe. While in the USA fixed ones are refinanced periodically.
Someone could do a video on how these things are geographically.
Yeah 5 year max to lock in a loan in Australia which we do. Hard to pay off a loan at Venezuela interest rates when hyperinflation eventually comes which it will, but the bank can call in your loan anytime they want…
Thank you for this wonderful easy to understand video
I had a thought it is this ,in the case off U.K. which went all in with X.R.P.my thinking would be the gains made on this coin should make your debt go away after so many year’s as the coin increases the wealth of the country’s involved. I hope this is clear enough .
However, mortgage companies are allowed to revalue your debt or simply call it due.
I don't think that's true. You have a mortgage contract. Those terms cannot change.
@@benstr8156 most of them can change the terms its in the small print.
Yeap . Predatory lenders lend you the money , then unexpectedly call in the loan at pennies in the $ , then sell to their friends for enormous profit.
Not if you have a fixed mortgage with no call provision. Which is the only type of mortgage I would contract. I would also require a no prepayment penalty clause. People think their banker is their friend….
Just found this video, great stuff! Subscribed
Great video! Thank you and God bless you!
From the immediate start, this video gives a false datum. A bank lending you money, when it is done under the fractional reserve system, is NOT deoriving themselves of the use of that money. The money is CREATED at the moment of borrowing, as long as the bank has a certain fraction of the amount in reserves. Thus there is ZERO risk to the bank. In fact, the signed loan agreement becomes a tradable asset.
Thank you! What would happen in a deflation?
His last point is the key one. The reason why the federal government is not worried about the debt, Is that they have the power of the printing press. When the debt becomes unpayable, they just continued to print money until it all becomes worthless. This is why I think that bitcoin and all the others will become illegal soon. The government does not want you to be able to transfer money out.
Careful. The USD price of BTC can be manipulated in futures markets. Google CME BTC Quotes.
I have two credit cards that we rarely use. Both have locked interest rates through my credit union. I would never open an account with a floating interest rate. You're correct,, very bad!
The inflation that will destroy the currency has already been created. It is when markets fail and everyone tries to liquidate their collateral that hyperinflation occurs and it is game over.
aint that excellent timing like 1929 for billionaires with cash around to scoop up huge chunks of wealth with -90% discount of normal price.... maybe high volatility is easier to happen in already higher inflation times. To create inflation, governments very often did "QE" with excuse to stimulate economy... .well most of that money went straight to wallstreet and biggest corporation wealth, suggesting this kind of scheme is likeliest to happen again. Companies with any buffer and solid cashflow products will survive over this period. Those zombies with no buffers and lived like beggars with extreme growth/bonus mindset, will collapse overnight.
@@effexon yep, cashflow is everything.
@@effexonlet's not forget (naked) short selling.
This guy obviously hasn't read The Great Taking. Cyprus and Greece did not inflate away their debts, they did a bail-in.
The creditor gets richer through higher interest charges and the person in debt just gets poorer and more in debt..
Appreciate the education 👍🏼🙏🏼
Real wages in the US have only increased 0.7% from 1973 to 2022, according to the latest data available. Maybe wages would increase quicker in a hypothetical hyperinflationary event, but as of the last 50 years they have remained flat.
Wages have been absorbed by rising health care costs. Total compensation has been going up.
It’s a contract. If a mortgage is fixed interest, both parties agree to the contract and accept the risk as adults. The bank can’t change it later, nor can the customer. That’s a contract. But in hyperinflation, a government may step in and say, ‘well, let’s tack another 100% per year onto your rate…banks are too big to fail, you know.
I disagree. Why would the Gov choose that option to upset it's ppl when it could simply issue loss money to the bank like they are doing currently with Gov bonds
Wesley why did you skip over what rising interest rates do to currency units in M2?
To add to the complexity population has always grown and so inflation was natural. But what happens when you have population growth falling and in more countries becoming negative. Migration will then be necessary to sustain the system, in an inflationary mode.
Also how does the new currency affect global trade, when other countries might not have the same policy as the US's and if their currency is based on a basket of commodities. Does the debt with other countries suddenly erase or can the other country request payment in commodities.
In an isolated system it is easy to play with the currency but in globalized world not quite so easy.
I've never liked the play on currency so have always exchanged money for assets, like land and precious metals, held in trust or anonymously.
Yes, demographics play a role in keeping the Ponzi scheme going. Look at Japan with falling population. Now in it's third lost decade.
Then what happens with your savings…. They have no more value neither???
30% credit card rates should be illegal.
Usury should be illegal
I think they will take option 3, the central bank cancels their own debt whilst recalculating individual homeowner loans to ensure repayment. You have made the assumption that they would play equally by the rules but real financial history shows that they never do. Great video but it is based on theories and assumptions not historical facts.
EXACTLY!
Look what happened in 2008. Economy got thrown under a bus and the banks got bailed out.
@@DavidAKZand they brought in the bankers to divine that plan.
They can inflate away the gov debt and change the IR on your fixed rate at the same time
The money didn't exist in the first place, your just paying a surcharge for the paperwork and the bankers. Old systems used deposits as collateral and back money by assets such as gold. Interest is simply a tax to regulate prices. If there was no cost to lender eg 0% people would buy everything driving up the prices. Owe did something like that happen recently
Which means if you have money in the bank buy a property no matter the price!!?? Am I right or wrong? Please answer
No, not no matter the price because prices will come down so you will lose equity if you buy to high. But converting any variable debt to fixed interest is a great step as well as buying assets of any kind, properties, businesses and franchises, or even stocks
@@InvestwithWesleythank you
Yes, in Poland over 30 years ago, government cuts four zeros so 1000 zl be came 1 zł
Many people saying 1 BTC will worth a million USD, but maybe enough to buy a car?
Thanks
CME control the price of BTC in futures markets. They can crash it any time in USD terms.
Why would the ONLY way out of credit card debt during a hyperinflationary event be to default? Wouldn't the value of the debt be inversely proportional to the amount of money in the system? And, if so, wouldn't that mean that a hyperinflationary scenario would put the debt at the limit of the function, effectively rendering the debt null and void?
I'm guessing that the same banks that pay fractional fines (see: cost of doing business) each year for rigging every market under the sun have thought this through already.
Good video… what happens to your stocks in a Hyperinflation environment…
I'll work on this video soon, but the short answer is the value goes up at roughly the same rate as inflation
They go up, but the profits are pretty useless.....unless you swap the paper for hard assets
@@demri123 100% keeping paper under your mattress is the worst way to save
@@InvestwithWesleyat best either the cost of their product goes up and they lose volume or the price goes down and they gain volume. In the end that volume will decay as consumers wages decay faster than inflation.
Also when you don’t pay your credit cards and default, you will most likely have to pay when the creditor sues you and the court garnishes your wages.
Blood from a stone…..blood from a stone
At some point the way out is to file for bankruptcy. This wipes out credit card debt.
@@benstr8156depends on the kind of bankruptcy. It's very difficult to get chapter 7 these days.most courts will force you into chapter 13.chapter 13 doesn't reduce your amounts owed so much as freezes interest and forces a repayment plan on debt.
@@benstr8156 And all your assets when the Sheriff comes
What gets me is that I'm not sure there's a viable non-first currency. Gold isn't practical as currency because it's too hard to authenticate (see gold testing videos) for casual transactions. Banking would create the same inflation pressures as fiat too
Bitcoin, etc is too volatile. I can't collect rent in a currency that can go +/- 15% in days/weeks.
I agree and have been considering this as well. I believe BTC is the final solution but we're not there yet. Maybe something like the Swiss Franc or other foreign currency that's backed by gold oil or another commodity
Prices have actually been going up for 3 decades now. People have been complaining over COL for that long, and thereby their wages did not go up otherwise they not complain constantly up to this point. If wages are not as fast as rest of inflation, then it is pointless.
Agree, they hardly go up as fast as inflation does. But that's the importance of buying assets, those assets will go up with inflation
@@InvestwithWesley problem is the assets are they has been going up so fast like RE. Stock market has been proven to be rigged. Just look at what hap with GameStop. I never trust the “markets”.
@@MbisonBalrogI think you're mixing timelines. Assets move up long term, and move up higher with inflation.
When the FED fights the inflation, prices go down in the short term.
GME is not rigged, it was a terrible company to invest in with almost zero profit but turned into a very popular stock due to a bunch of people on Reddit. No proper investment advisor would have ever recommended you buy into GME. I know I never recommended it to any of my clients.
For further proof of what I'm saying just look at the SP 500 since COVID. All that inflation pushed us up so high and sure we're in a bit of a downturn right now but look how high we still are even compared to the downturn.
The games are not rigged, only people aren't taught how to play
@@InvestwithWesley FED did not fight inflation for long time. Assets continue rise even after GFC with maybe a short downturn. If you can’t afford basics forget about investing/speculating plus it was asset inflation that preceding all else these past decades. Only way for this generation to buy in was to buy in instead of learning math in middle school cuz that when they needed to start.
@@InvestwithWesley and little guys should have become rich off the Gamstop fiasco but the rich put stop to it. That is definition of rigged.
The banks will "simply" re-assign the new rates to all the borrowers, instead of your 2%, it will be 200% - because there are small fonts in the bottom of the page which allow banks to do so. The system will always fuck an individual.
Or call out the loan with immediate effect, and if you do not have money they will size property.
@@michaewelina7983 Exactly!
That's not how it works. Your mortgage is a binding contract and sure the big wigs don't play by the same rules but never in history has a fixed mortgage been "simply reassigned"
@@InvestwithWesley never in history, US bankindlg industry seen triple-quadruple hyperinflation numbers...in your video you are assuming that in extraordinary circumstances banking will apply regular measures. Will never happen.
@@InvestwithWesley "A bank is a place where they lend you an umbrella in fair weather and ask for it back when it begins to rain." - Robert Frost
Housing prices fell by 67% at the end of 1932 from the peak of 1929.
So during hyperinflation it is not that simple to buy a house with some debt.
A typical property bought in 1920 would have retained only 56% of its initial value in nominal terms two decades later.
And you've got the risk of the renter who can't pay the rent.
Life is not that simple ;-)
Life is simpler when the Central banks continue to juice the stock and property markets. In 1929 they took the 'punch bowl' away which caused the Depression. Bernanke did his PhD on this so was well aware of the consequences.
During this period of depression in Montreal, apartments were no longer rented for money, they rented just to be surely that it was heated and many tenants could not even pay for coal to keep the temperature above freezing! They then burned the furniture and kitchen cabinets for heat!
Homes are a depreciating asset. You need to pay for maintenance and taxes on the property and eventually replace the whole thing. It's much slower than a vehicle, but it doesn't build appreciating value. The land under it may build value due to supply, but homes do not
All of that is dependent on the purchase price. Buy @ the top and you face significant risk to capital. Just look @ recent history=had you purchased in 2019 you would have @ least doubled your $ in most areas by now. But had you purchased in 2007 you would have been underwater until at least 2018.
We just got a 20% raise over 3 years. It’s starting.
Money is created out of debt. It is created out of nothing.
I do t think Dave Ramsay denies good debt exists, just that the vast majority of people aren’t responsible enough to not use debt for bad reasons.
only way to do ok is have a form of money outside of the bad currency. gold ans silver are obvious. i lived i. ecuador when it collapsed. if u had gold or dollars u actually thrived
Except socialist states like CA grants tenants years of rent free living while the homeowner still owes the mortgage and property taxes. Also precious metals are heavily suppressed in the future paper mkt. SBF should preside over precious metals trading.
What you say about compensation via interest is untrue because a bank will lend you thousand to ten people, basically lending what they do not own.
Do you have video's on wealth preservation through gold silver or other means? Just found your channel.
I recommend 2is1 - it's a youtube channel for new gold & silver investors - he doesn't push anything, just gives solid no nonsense advice for small timers. and no, I'm not connecdted to him or get a commission or anything
@@davidholubetz177 already subbed to him ;) great advice!
Basically you have paper/bullion. If you do paper make sure it’s allocated. If you do bullion make sure it’s secure. Be aware the IRS defines precious metals as ‘collectibles’ under the tax code so familiarize yourself with the code.
Most people go with fixed rate loans, not variable.
Impossible to do any more but when you are able to get loans, with 0% interest you are better off still.. in my case I purchased both my cars in 19 seeing where things were going both cars are at 0%.
What if the cash flow gets eaten up by the myriad expenses you incur in order to hold on to the asset?
I mean, if you don’t pay the property taxes, you’ll find out who the real owner is.
Russian in '90s lived for half year without salary, but yeah. Eventually they got salary. Eventually
Why does a car depreciate but a house appreciates? They are both money pits that cost you to maintain and you can live in both.
The VERY short answer is use case, a car has a use case of only a few years before it is in need of expensive repairs/replacements. A home lasts much longer into 2 or 3 decades before needing expensive replacements or repairs.
Technically they both "depreciate" do to use. If you've ever owned a rental you can do this for taxes.
But because of limited home supply for increasing demand home prices rise.
So on paper you're Making money in equity while also losing money to depreciation
They are nor making any more land.
There is one problem with option 1 which you mentioned.. What is the lender going to do with the worthless currency the borrower is paying them? somebody will.lose and those losses will have to born by multiple people so it will affect the whole chain not just that one lender.
The central banks won't sit idle as the currency is falling. They will raise interest rates to prevent the fall of the currency and therefore increasing the interest payment as well in correlation to the amount of inflation.
That would work except the government increases liquidity faster than the FED removes it. And that liquidity(debt bonds) carries an interest coupon eating a greater amount of said liquidity as rates go up. That circle jerk will be exposed in the currency markets and acted upon @ some point.
@@Newlinjim liquidity does not come from the governments but the federal reserve. As long As people are buying government bonds the federal reserve will keep printing but only when the credit rating really goes under and bond buyers start demanding higher rates or altogether refuse to lend then its Armageddon.
If you can afford your payments when everything around you gets more expensive. Not having debt is the safest way out ..
Is that a paddle on your back wall? It’s not what I was expecting from finance video. 😂
OMG can you imagine! 😂 No, it's actually a Roman Gladius hanging up 😂
Does this act of not paying them back impact your rapport in the long run?😢
This, of course, relies on government not doing something shady like letting creditors reindex debt to compensate for inflation.
You mean like reindexing student loans to compensate for a valueless degree?
Lots of defaults, and the money you pay the debt back with gets worthless real fast, it is a disaster.
Most if not all debts payable have a currency type such as the US Dollar and denomination amount such as $50,000, This is in the contract. If the government want's to set up a new currency this would not change the already existing contracts that state a currency. The government may try this but there would be tough legal battles over it and many people would refuse to go by the new rules that came after the fact and this could lead to a large scale civil uprising possibly a civil war if this is attempted and enforced. Even if the government declares the old currency worthless it is still the only accepted payment in most loan contracts.
"good debt" is absolutely NOT a wealth transfer from the lender to the borrower. The lender just creates money out of thin air!
You can't get a fixed rate mortgage for a reasonable length of time in England.
Investors sent stocks soaring on Tuesday, cheering the October Consumer Price Index report that showed inflation slowed more than expected last month.What is the greatest strategy to take advantage of the current bull market while I'm still deciding whether to sell my $300k worth of stocks?
What do you think?