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Western Real Estate Bubbles Exposed

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It is understandable if many readers choose to view the current financial nightmare concocted by Western bankers as an “economic Hell”, however it would be only a moderately appropriate metaphor. To truly capture the quality and severity of the economic conditions confronting the average person requires adjusting that metaphor to the notion of Twin Hells.

There are clearly two prongs which have been crafted by the banking cabal (via our Puppet Governments) which they use to skewer their victims, what has been described in previous commentaries as simply the Rape of Savers. The “high inflation” caused by wildly excessive money-printing (most-particularly in the U.S.) is obviously one of those Hells.

This theft-by-currency-dilution is as obvious as it is appalling. Currently the One Bank’s “Wall Street division” receives approximately 10% of U.S. GDP each year in literally “free money” - printed by the Federal Reserve and then handed to the Wall Street banks. These Big Banks are then allowed to “leverage” this free money (legally) by up to 30:1 (and illegally even further).

This “leverage” is accomplished by these fraud-factories effectively being allowed to all “print” their own money. Now do the math: 10% (of GDP) X 30 = 300% of GDP (every year). Can anyone see a problem here? In the perverse fantasy-world known as the “U.S. CPI” (and now virtually duplicated by other corrupt Western governments), we’re told that inflation is very low – even “too low”. Meanwhile, back in reality a “food inflation crisis” already ravages the Planet Earth.

Hyperinflation is being delayed through the One Bank simply building a much bigger time-bomb. Most of the mountain of free money handed to it by the U.S. central bank (and the European Central Bank, and the Bank of England, and the Bank of Canada) is used for its own gambling in its private casino: the derivatives market – and is thus (somewhat) sequestered from the so-called “real economy”.

With the Derivatives Bubble already somewhere in excess of twenty times the entire global economy in size; the “fuse” on the Banksters’ hyperinflation time-bomb has already burned critically low. But that’s only one prong.

The other prong, while less overtly malicious is just as insidiously destructive: 0% (and near-zero) interest rates. High inflation by itself is merely an “assault” on savers. In legitimate economies, high inflation is always accompanied by high interest rates; allowing Savers some capacity to fight-off this assault.

But with the One Bank’s fraudulent 0% and near-zero interest rates across the Western world, instantly assault becomes “rape”. With no cushion of interest (on savings) to deflect the savage assault on our wealth via high inflation, theft-by-currency-dilution is maximized – to a level never before seen in human civilization.

With nowhere for the Rape Victims (i.e. savers) to hide, they are forced to run. And where do the Sheep always/inevitably run first, when the “shearing” from high inflation becomes too painful to bear? Real estate.

Any sustained episode of high inflation is guaranteed to eventually manifest itself into a real estate bubble, for reasons previously mentioned. However, with our Twin Hells producing this serial Rape of Savers; the flight into real estate markets becomes a panicked stampede. And what was a mere “shearing” eventually becomes a slaughter.

 

The problem (of course) is that any asset bubble provides less-than-zero “protection” for the Rape Victims of high inflation. Indeed, the perverse danger of this (and all) asset bubble(s) is that initially it provided the Bubble Disciples with the illusion that they have somehow “cheated the system” – and found a sanctuary where (supposedly) the all-encompassing financial manipulations of the One Bank cannot find them. The ultimate delusion.

Obviously the creators of this financial stampede already knew where the Herd would end up before the stampede even began – and they are waiting for them. What comes next is a part of the Game now well over a century old, and expressed in stark, if somewhat archaic terms in “The Bankers’ Manifesto of 1892”:

The courts must be called to our aid, debts must be collected, bonds and mortgages foreclosed as rapidly as possible.

But even this is but a tactic amid a more Grand Strategy:

When through the process of law, the common people have lost their homes, they will be more tractable and easily governed through the influence of the strong arm of government applied to a central power of imperial wealth under the control of the leading financiers.

History repeats itself in regular cycles. Thus truth is well known among our principal men who are engaged in forming an imperialism of the world. While they are doing this, the people must be kept in a state of political antagonism.

Economic Slavery.

Naturally the bigger the real estate bubble(s) which is created, the greater the numbers of the “common people” destined to join the ranks of the Homeless (and the powerless). We saw the One Bank execute its game of bubble-and-bust to perfection in the U.S. following the Crash of ’08. Foreclosures were maximized as corrupt judges rubber-stamped openly fraudulent/falsified documents.

Of course even after one of these manufactured housing-bubbles bursts; all of the bubble-building parameters remain in place. Thus after five years of furious pumping; the Wall Street/Washington partnership has managed to create a new U.S. housing bubble. This joins the yet-to-be-imploded(?) Canadian housing bubble, along with assorted European housing bubbles – which (depending on the nation) are either building toward (new) implosion, or in some phase of catastrophic deflation.

Irrespective of the precise dynamics in any particular market; the Call has gone out from the Corporate Media: more victims must be found to feed the Western foreclosure mills, as most of the resident Sheep have already been sheared, right down to the bone:

Needy EU Nations Woo Chinese Home Buyers to Ease Slump

Simply put, the hollowed-out economies of the West (and their fraud-ravaged populations) are now too anemic to re-build any of the burst European bubbles. Only some injection of outside wealth can allow the One Bank’s cycle of boom, bust, foreclose, and steal to continue. Otherwise all these economies are simply “going down” for the last time.

The Canadian housing market is the last to go “boom”, only because Stephen Harper inherited the strongest economy in the West, and the most-stable financial system in the world. Sabotaging a structure that sound takes time. But in the U.S. and Europe, the game (if it can be managed) is now re-bubble.

Meanwhile, as Contrarians in a permanently fraud-ravaged sector; precious metals investors have a unique perspective on the events taking place/about to take place in housing markets across the West. The (extreme) irony here is that it is only because of this constant price-suppression of precious metals by the banking cabal that precious metals is (and remains) a financial Sanctuary for any with the wisdom to seek it.

Gold and silver have no “natural immunity” with respect to the One Bank’s game of (print, then) boom-and-bust. What would have happened during this Rape of Savers if the banking cabal had not been engaging in extreme price-suppression (not to mention the endless/inane “warnings” from the Corporate Media to frighten-away the foolish from precious metals)? We would have our own gold and silver bubbles – precariously propped-up right along-side all of these real estate bubbles.

What if there had been no gold and silver manipulation at all? What if gold was already at $5,000/oz today, and silver was at $200/oz? Would we be more frightened of having our wealth concentrated inside or outside precious metals?

Put another way, long-term investors in this sector have just experienced “the ride” as precious metals prices were taken down from near $2000/oz for gold and $40+/oz for silver. Are there any investors out there masochistic enough to relish beginning such a Rollercoaster Ride (today) with gold at $5000 and silver at $200?

The ultimate irony is that if everyone sought refuge in precious metals (as they do in real estate) that it would be a “sanctuary” for no one. Instead, as this cycle of futility continues in the West’s bubble-and-bust real estate markets; it is the One Bank itself which has (inadvertently) crafted our Contrarian’s Haven.

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Jeff Nielson
...
written by Jeff Nielson, August 28, 2013
Jeff,
Placed my home(no mortgage) on market and plan on down sizing in price to around 60-65% while still having no mortgage. Taxes will drop about the same. I expect taxes to rise after the coming fiscal collapse, as we as a Nation(s) will have to start paying our way in lieu of mass deficit spending by the current government party. Then I will move most of my nest egg remaining fiat monopoly money from real estate to PM's.
It was either PM's of JPMorgan Stock(lol)!


Paxjds, when it comes to homeowners wanting to "downsize"; it's clearly now-or-never. The leading authority here is Chris Martenson (in his "Crash Course") pointing out several years ago how with TENS OF MILLIONS of Baby Boomers (across North America) all wanting/planning to "downsize" at roughly the same time (lol); that only the Early Birds will be able to successfully make that move. smilies/wink.gif

http://www.bullionbullscanada.com/guest-commentary/chris-martenson
paxjds1
...
written by paxjds1, August 27, 2013
Jeff,
Placed my home(no mortgage) on market and plan on down sizing in price to around 60-65% while still having no mortgage. Taxes will drop about the same. I expect taxes to rise after the coming fiscal collapse, as we as a Nation(s) will have to start paying our way in lieu of mass deficit spending by the current government party. Then I will move most of my nest egg remaining fiat monopoly money from real estate to PM's.
It was either PM's of JPMorgan Stock(lol)!
Jeff Nielson
...
written by Jeff Nielson, August 27, 2013
It is hard for those of us who have "run" to PMs to wait for the ride up, but better to realize the past 5 years have been a "gathering" time. What if we had not been given this time to accumulate the PM's?

Real Estate procured on margin / debt will be problematic, I think. But, if purchased free and clear as a primary home, it can be a safe haven with gardens for food. It should be viewed as a useable, depreciating asset for life support.



Yes Jeanna, it's important here to separate "real estate" as an INVESTMENT, versus simply owning one's own home (i.e. really "owning" it). Implicitly, I stopped short in the commentary of suggesting that people LIQUIDATE all real estate (even their own homes) -- and move all that wealth into PM's. So let me do so now EXPLICITLY (lol).

As part of our general mantra of "playing defense"; owning one's own home (preferably with clear title) clearly has a role in such a game-plan. We all have to LIVE somewhere. smilies/wink.gif

P.S. Yes, it's been a long wait for precious metals holders, but the best "prescription" to fortify our patience is education. When we understand that precious metals MUST rise higher/faster than other asset classes (over the longer term), we become much less likely to either lose our nerve -- or simply suffer too many "sleepless nights" waiting for sanity to return to these markets...(lol)

Jeanna
...
written by Jeanna, August 27, 2013
Excellent, as usual. It is hard for those of us who have "run" to PMs to wait for the ride up, but better to realize the past 5 years have been a "gathering" time. What if we had not been given this time to accumulate the PM's?

Real Estate procured on margin / debt will be problematic, I think. But, if purchased free and clear as a primary home, it can be a safe haven with gardens for food. It should be viewed as a useable, depreciating asset for life support.

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