With so many headlines about the recent $2.2 trillion government bailout for industry and individuals, I keep asking the question “From where is this money coming?” Its not as if our federal government has a bank account somewhere with trillions of dollars at the ready. There aren’t enough gold reserves at Fort Knox to cover it. No, its being created out of thin air by simply printing it on paper and digitally. So what’s the big deal, right?
The big deal is that as with any commodity, when there is a surge in supply, the value of that commodity drops. The dollars in your wallet or bank account are no different. For example, lets say that last month there were one million one dollar bills in circulation in the world and you had 100 in your wallet. But now there are a trillion one dollar bills circulating……your 100 dollar bills just got diluted and have dropped significantly in demand and thus buying power. The result is called inflation, and I believe we’re about to see some hyperinflation in the coming months and years as the reality of this sets in. It won’t happen immediately, but will eventually come our way.
On April 16, 2017, I wrote a post about our national debt (click here to read it). When I wrote that post, our national debt was a little over $20 trillion dollars. As of this moment, the US Debt Clock shows our national debt at $23.8 trillion. Of course this doesn’t include unfunded liabilities such as social security obligations to retirees, military retirements, food stamps, inter-government loans and such. As of this moment, unfunded liabilities (not including national debt) is at $137 trillion. So lets just add another $2.2 trillion to the mix. Who’s counting?
My point is that eventually all these notes will come due, and with the worldwide economic shut down, its going to come sooner rather than later. One thing you can do is diversify into some solid real estate. Unlike paper money which governments can print at will, there is only so much real estate to go around. Furthermore, the real estate we here at Retreat Realty handle can provide you not only good investment diversification, but also a hedge of personal safety for you and your family. Though we’re hearing reports of the virus starting to plateau in certain areas, even after that settles down, there’s going to be huge economic fallout to come, and having a bugout property or survival property here in our rural western North Carolina mountains around Asheville and such could be a great investment, both financially and for personal enjoyment and safety. So be doing your research and call us today so we can be ready to assist you once we’re all allowed to get back to work. Unlike our government that loves to print money, I’ve always said “God isn’t making any more real estate.” Get yours now!