Shenandoah

Do I hate bankers? Not the honest ones that play by the rules. But then that eliminates the Federal Reserve and 90% of all United States based banks. So of the trillions of dollars allegedly being managed, er, invested, er, held by these trusting souls, 1 in 10 is to be trusted. And when that 10% is found by the other ninety, remember that the phrase “acquisition” will be used.

So what does all this have to do with the theme of this essay, editorial, or 500 word whinefest (that’s for the cheerleaders)? Simple. America is about to face a major economic reversion into a time and standard of living that about 99.5% of the American people are not prepared to face. The banking cartel is about to cash in on the ignorance and cowardice of the average American citizen. How you dare ask? Well, let’s look at some new realities:

1. Eminent Domain - If your home has a view, is paid off and in a semi-desirable area, or sits on a fresh water aquifer, then the banks and politicians want it. And now that the Supreme Imbeciles have upheld the 1933 Reichstag Constitution, bypassing ours written in 1776, you had best sell that home to the state at 50% of the market value or be prepared to be “rescued” (That’s Mayor Michael Brown’s term, not mine) by the powers that be. Bottom line: If you as a middle class citizen was smart enough to purchase, invest in, or inherit some prime real estate, so what. It’s not yours and if the Bank of America thinks it would serve a better purpose such as Mayor Brown’s gold plated outhouse, there’s not a government in the world that can’t be purchased to make this happen. Bye, bye speculative boom or why should I invest in something that someone else can steal from me….

2. Mortgage Crisis - But there’s a boom? So there’s no crisis. Believe that if you’d like. But the reality is that the baby boomers made a major faux pax. Can you believe those fools actually believed that a company they worked for all their lives would actually honor a contract? I mean hell, so what if they took 12% of their annual pay and produced mimeographed printouts of how hunky dorey their retirement program was doing. The CEO’s momma needs a new Gulfstream so how dare you peons think that you should get the retirement you were promised, even if you paid into it. So now, you’re 64 years old, retired in the Sunshine/Hurricane State, and your Social Security aka, other defaulted pension program, pays you enough for 7 cans of Alpo and a 12 pak of Natural Light per week for meals, and that’s if you elect to heat your home, and you have a mortgage payment due on your original second home, which became your first home after that home up north you sold was dumped at a loss. Well, welcome to Florida and them thar happy sunny retirement days. Your pension was just cut 66% by the Federal Bankruptcy court and your homeowner’s insurance just increased by 66%. Hmmm. guess it’s never to late to go back to work and surrender that Social Security blanket. But you’ve retired where it only gets cold for a little while, so to save money you turn off the heat and get a job at the local 7-11.

Knock, knock…it’s the court. Here’s your foreclosure papers and before you leave, can you clean up the frozen cat in the corner. Oh, and because you work, you don’t qualify for any Federally assisted housing and that wouldn’t matter because it’s all being used right now by those poor pathetic illegal, er, migrants from Mehico.

Ain’t retirement great?

3. What’s gold got to do with it? (Sung to the tune by Tina Turner “What’s Love got to do with it?”)

Hmmm. Gold is causing a real estate crash and people to live like crap in that holiday movie, It’s a Wonderful Life. By now, many of my loyal readers, detractors and online moderators are debating if I’ve lost it, should be censored, or just mailed some Xanax to keep the flow of this editorial rocking and rolling.

Gold has nothing to do with the current real estate deflation, but everything to do with foretelling it. Many of us evil doomer and gloomers warned of the real estate deflation when gold was cheap, so to speak. I preached like a fool that when your neighbors, barber and best friends (who will become my former best friends when they swear they never heard me say “get out” like in 1999) were the warning sign when they all said they were taking out their home equity and buying speculative real estate. For some, at the start, this worked great. But as they expanded, what happened? Hmmm, non-performing assets. That’s funny, the $179.95 video I purchased on real estate investing at 2 a.m. off of HSN never mentioned that phrase. Well, isn’t that a mess. The (fill in the blank) now has an asset which is costing them $1800 per month to own and they are using the income from their other investments to try to cover this loss, but now they are becoming non-performing because the other renters invested $179.95 and now are buying more junk from the old time real estate investors who are laughing their way to Antigua to retire and watch this circus.

And gold? Well, that bellwether is over $525 as I write this, and that indicates that the guy in Antigua, the central bank in China and Russia, and those loving, caring, American hugging Saudis are buying more gold because they think the party is up. So as the dollar is devalued, in reality, the value of real estate investments is dropping also. This is known as inflation boys and girls. Jimmy Carter educated me about that in the late 1970’s and wow, it was great. I was unemployed by 1977 and couldn’t afford anything but that miserable sweater the SOB told me to wear to save energy.

But I digress. Gold is the bellwether. GM is a bellwether. The dollar is a bellwether. And they all tie into Pottersville, that mythical place from a Christmas movie that most ignore or watch only to feel good, without realizing that we could be living it soon.

Because soon, all you’ll be able to do is rent from the banks if you’re a debtor. And creditors do not care one iota about your hardships. They want money or property.