Why did American boomers think it was ok for people to turn housing into an investment ponzi scheme instead of literally just a place to live?
The Housing Market
Julian Phillips
Noah Morgan
because it made them richer
Easton Taylor
Ok i see not many people get this but let me explain how bad things truly are.
Ever since the reinaissance nations used gold was the reserve currency in one way or another(the romans also used gold and all other civilizations in fact one of the reasons the byzantine empire survived was because they were forced to adopt gold as a currency since hordes arriving at constantinople were better deal with by bribing them than fighting them and the barbarians demanded gold as payment so they adopted gold as a currency once again).
Ok i see not many people get this but let me explain how bad things truly are.
Ever since the reinaissance nations used gold was the reserve currency in one way or another(the romans also used gold and all other civilizations in fact one of the reasons the byzantine empire survived was because they were forced to adopt gold as a currency since hordes arriving at constantinople were better deal with by bribing them than fighting them and the barbarians demanded gold as payment so they adopted gold as a currency once again).
The western roman empire went on hyperinflation and was never able to regain it's stability.
Leo Nguyen
Now you may be asking what the hell does rome has to do with the renaissance or gold.
Well gold is a natural currency due to it's high stock to flow ratio(the mined stock per year is too small relative to the existing stock) this gives gold a yearly inflation of around 1.50%.
The problem with gold is that as a currency it's horrible and hard to transport and protect , in fact the byzantines adopted gold as the official currency due to what i mentioned above but the public still had a fiat currency for everything except paying taxes.
So to pay taxes people needed to exchange fiat for gold and then pay the taxes in gold , this gave the government in the eastern roman empire the ability to balance budgets on a currency with 1.50% yearly inflation.
So europe ends up getting out of the dark ages and gold is once again a currency, then spain discovers the americas and brings lot's of gold to europe destroying it's economy since this sudden intro of gold caused massive inflation ironically
Wyatt Torres
But it also gave the whole of europe a golden age as a stable and abundant currency was introduced.
Eventually in the 19th 20th century gold was used as the reserve of fiat currencies.
This meant that governments WERE FORCED to balance budgets since they could not print more gold.
So from 19th century to 1939 the world prospered in some way constantly even if with massive wars.
But at the end of the war the powers united at bretton woods to create a new world trade system but there were a few problems.
1_The soviets did not attend.
2_They had insane ammount of armies relative to western powers in europe.
3_All western powers minus the usa were destroyed.
The idea was to avoid the problems that gold had by creating a global currency called the bancor so central banks could trade with each other and devaluate against that currency if needed.
But the usa smartly opposed this since in the case of the soviets marching west they were the only ones capable of financing the defense of europe.
So at the end on bretton woods instead of the bancor something differnet happened the us dollar was adopted as the reserve currency backed in gold and all other currencies were going to be backed in us dollars.
So in the case of a war with the soviets the usa could inflate the usd and break the parity to finance the defense of europe.
But that did not happened directly what happened was that after the korean war and eventually the vietnam war and LBJ programs i may add the usa broke the parity with gold.
Charles Turner
This was all fine to a certain point until one understand that the usd was convertible to gold and countries like france demanded the gold in exchange of the usd.
The game theory behind the bretton woods was simple nations WERE FORCED to balance budgets since they could not print usds and the usa WAS FORCED to balance budgets since it could not print gold.
But in 1971 this unbalance was so great that nixon broke the gold standard and the world entered into something that never happened since the dark ages.
A system based on nothing and no game theory , the usa could print whatever the hell it wanted and other countries could also print what they wanted since now all currencies were floating against each other.
This is all fine if there is demand for those inflated currencies thus globalism and opening china , if the velocity of money goes up it's irrelevant to some level how much you print since the demand for said currency also goes up.
Justin Martin
Ey no problemo Jorge, just call up 10 of your sisters and brothers and we buy the place all live there odele holmes.
Landon Phillips
The problem is that disconnecting currency from gold which had a natural low inflation of 1.50% caused massive damage from a game theory because
1_Politicians could inflate without problem
2_Balancing budgets became irrelevant
3_They could change the definition of inflation to hidde the inflation.
So first they removed real estate from inflation indexes we went from
1_One worker being able to buy a house with two years of minimum wage in 1971
2_One worker needing a good job to buy a house in a 15 years mortgage in 1980
3_One worker needing a really good job to buy a house in a 15 year mortgage in 1990
4_One husband & wife needing to work on good jobs to buy a house in a 30 year mortgage in the 2000s
This is happening because currency was disconnected from a real good with low inflation , gold was not used because muh shinny , it was used due to it's low inflation.
When the dxy index that meassures the value of the us dollar relative to other fiat currencies(that constantly devaluate against the us dollar to keep their parity) shows exactly what i mean.
Every time the dxy goes down bitcoin & ethereum or other cryptocurrencies which now has a low inflation goes up(and so does housing which also has low supply).
Nathan Morales
Basically it's a road to hell because every currency is devaluating against each other , the usd / euro rate can be the same for 10 years but relative to real estate both have lost their value.
This was not the case before 1971 we are living in an insane experiment and the worse thing is that asset owners benefit from this shit which is leading society into feudalism.
As for how do we get out of this , who the hell knows as it seems the elites will introduce ubi to keep capital going up while purchasing power goes down.
Maybe if we are lucky bitcoin takes over and forces politicians to reform this system but otherwise it's in their interest to keep it so it's hard to say what's going to happen.
Now every time the dxy goes down a few points bitcoin goes up a few thousand dollars due to having absurd low inflation.
Get into crypto or rope fiat is literally collapsing this is not a meme but extreme seriously.
And yes it's the most blackpilling shit ever to know we are living in an endtime, if it ends like the roman third century or not literally depends on bitcoin and crypto surviving and enforcing a new standard.
All other paths lead to feudalism.
Dominic Robinson
Thread is proof that pic related
Ethan Hernandez
>gold
Go back
Ian Evans
>instead of literally just a place to live?
I didn't know physical space was absolved from supply and demand. Someone should tell God to start making some house-trees so that we can grow them perennially and have enough for all.
Landon Russell
My shithole house I bought 12yrs ago at 260k in LA is now worth 480k ... I can literally sell and have 250k to buy a house in another state cash.. this is retarded even for me.
Noah Bailey
imagine being a retard and blaming boomers when the same money printing you profit from in stocks is the reason housing prices only go up.
Literally OP kill yourself
Evan Long
Shhh... no more questions user, only profit.
Nicholas Price
Gold sucks in the digital age due to paper certificates diluting the value , goldfags are retarded , but bretton woods game theory with gold behind worked and so did previous gold standards.
Jayden Parker
>with food and raiment therewith be content
The bible says nothing about shelter.
Lincoln Richardson
based max keiser
Landon Flores
Feudalism with the most advanced technology ever to exist. They will literally have complete control in 5-10 years
Lucas Cox
Yes and then the system will collapse on itself as it happened.
What they will have in ten years is not feudalism it's diocletian reforms to keep welfare states working , what follows after is feudalism as an inderect result.
Hey someone has to enlighten people one mind at a time.
Ayden Roberts
Can't wait to get comfy in the woods, and wait all this bullshit out.
Samuel Sullivan
Did you write all that or is it a copy and paste? Where did you educate yourself?
Jace Clark
Write all that but copied it since i posted it in other place and the thread died since i got pissed off lmao.
>Where did you educate yourself?
Live in Argentina fora few decades and you will see a few economic cycles / collapse, add a plus being an history autist interested in economics and you can see why i get this shit.
I could probably have an economic degree but the keynsians at university pissed me off with their insane propaganda bullshit at the service of the state.
At one point it became unbereable to endure their bullshit specially while the entire country was going to shit due to the bullshit that they sell to society.
youtube.com
Farmers & Cryptoautists own their own capital , the only people in our modern society that has that capacity.
Jackson Brooks
curtis stone is based. im trying to make enough gains to buy some property because i can see the value of the USD is falling fast
Cooper Campbell
Do you have a throwaway email so i can contact you?
Robert Baker
Same frends going inawoods and living of the land is a good way to position ourselfs.
Anyone expecting this clown house of cards to keep going is deluded maybe with ubi and owning nothing and literal neofeudalism but even then they won't be able to touch land since those that produce food have a lot of influence.
Nolan Morgan
>Farmers & Cryptoautists own their own capital , the only people in our modern society that has that capacity.
most intelligent thing i've read all night. would like to add though that farmers only own their own capital if they have either deeded water rights or high producing ground water wells.
Benjamin Roberts
Sure
btw why the fuck do you want to contact me?
it's a clown show out there more and more people own their own capital as a freelancer you can have as much as 3 intermediaries between you and your income, employees are paid on fiat losing value, companies pay income taxes never updated for inflation the list goes and goes for hours.
James Lee
Are you Argentinian? How can you guys default on your debt 10 times, and still get loans? I know other countries in south america, have done the same, but your guys' situation seems to be getting worse and worse. Also, why has your situation gotten so bad?
Adam Morgan
our standard of living is falling. residential real estate is the only asset that people absolutely need, whether it's rental or ownership. so boomers took advantage of this. they bought for pennies on the dollar 40 years ago and now they've padded the tail end of their life with this scheme.
Jaxon Baker
You have talent and I can tell you're one of the smartest people on this board. I like to keep a wide range of skillful anons in my contacts.
>t. crypto millionnaire looking to build up his circle
Aiden Bell
>Are you Argentinian? How can you guys default on your debt 10 times, and still get loans?
By having a massive food export economy we get usds to pay back eventually even if we let the debt inflate.
The keynsians in control of this nation are terrible for real , they are totally out of their minds and have led this country to total disaster with minimum wages now being below haiti thanks to inflation.
Of course when you are so full of resources it's in the interest of other nations or world organizations to keep you going, so now china & imf & world bank & bis are giving our government gibs to gain influence.
Alexander Martin
tl;dr the us currency is not tied to anything and can be printed / multiplied at will by the FED and banks through loans. yes we know. nothing riveting here. and so certain assets are inflated with the fast cash and eventually people get priced out of those assets.
Benjamin Garcia
So what you are saying is Argentina is basically just a colony.
How's the standard of living in Buenos Aires if you have decent money
Noah Peterson
>t. crypto millionnaire looking to build up his circle
Based crypto millionaire autist we need to start working on a citadel kibbutz to get away from normies and form a homestead cryptoautist community while they destroy society.
Or at the very least on an only hodler forum to communicate between each other after the dxy goes to hell there will be literally cases of people getting tortured due to holding crypto due to how much crypto will moon.
In all honestly i don't see this crap ending well , the correlation of the dxy / bitcoin has left the fiat elites totally exposed.
it's worse than that stonks are also floating above the inflation.
Basically cash saving function was removed after 1971 and shit like real estate & land & stocks is the only way to save money.