Trump control the Fed and Powell is his puppet - interesting article!
(badlands.substack.com)
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The restuctiring of the financial system is the true end game. Good guys and bad guys walk the same path until the showdown. Then we have freedom or slavery
Just imagine how rich everyone would be if this corrupted and broken financial system were fixed or restructured. It's late here, almost 3am so I'm not going to try to remember everything off the top of my head but the value of the dollar should be many times higher than it currently is and the value of a lot of property is higher than it should be.
Maybe I'm wrong but wouldn't that essentially mean things being much cheaper again and the dollar being worth more which would significantly increase purchasing power of an individual?
Supply and Demand would still play a huge part.
If you have more buyers and cheaper assets, you will run out of supply and then prices will go up accordingly.
There's a lot of turmoil in settling new ground, and this would be the biggest change, probably ever, which will mean everyone will have to find new ways of doing things.
If everyone is rich, will you be able to afford a plumber? (Just one example)
I probably shouldn't have said rich but instead should have said much more financially stable. I see all the time where lots of people are struggling to survive, struggling to keep a home, and afford food, etc. If the past 50+ years of our financial system being fucked with was corrected then people would essentially have 5 to 8 times more wealth when prices went down and the value of a dollar went up.
One good example I remember from my youth was back in 1994 when I worked at Burger King for $4.25/hr while going to school. Back then a whopper was $1 so 1 hour of work could literally buy 4 whoppers but now days whoppers are over $4 and here in FL I think minimum wage is like $11/hr. I haven't had a minimum wage job in like 25 years but I think it's at 11/hr now but working 1 hour now at that wage would only afford a person 2 whoppers whereas in the early 90s 4.25/hr could buy 4 whoppers.
Gas back then was as cheap as 69 cent per gallon in some places. A large portion of inflation is caused by government wasting money and causing the value of the dollar to go down. If it were ever corrected, people wouldn't be literally rich but people would be able to afford a house, a car, food to make proper meals with, etc. People wouldn't have to struggle to survive each month.
Per the US census bureau, around 43% of adults earns 25k or less per year. If we take a person earning 25k gross income and that person wants to rent a home, typically a landlord will require the person to earn 3x the rent in monthly income which would be around $2,083 per month and that needs to be divided by 3 to get the max amount of rent they'll likely be approved for which would be around $694.
In most cities now days, a roach infested borderline condemned tiny studio apartment costs $700 and up so 43% of adults are likely having to live with family or have roommates just to be able to afford a cheap home. If the person chooses a roommate then they'd need a 2br home which will increase that price at least to $900 or higher which would allow the two people to get over that 3x threshold.
No one can force a landlord to lower their prices, as far as I know so even if the financial system were fixed there might still be lots of greedy landlords trying to milk tenants for every extra dollar possible. It is very easy to afford a mortgage for a house but banks typically require a 20% down payment which is what makes buying a home out of reach for many.
An average ole 3br house with 1/4th acre yard will easily be $200,000 and up. At the bottom end of $200,000 would be a $40,000 down payment up front. How many people earning 25k or even 50k per year can come up with a 40k down payment? There are government programs to help low income people get a mortgage with a low to no down payment but then the monthly mortgage payment would be considerably higher.
Regardless though, if the financial system were ever fixed, people would at least have a chance to have a good home instead of struggling to afford dumpy homes.
Understood. I hope we can all go back to more affordable times.
I sometimes look at houses and land for fun. I've seen small plots of land for 5 figures, no idea if it's arable or not. I'm talking one acre for like $12,000. Seems insanely inflated to me.
I remember when 1 acre was commonly under $1,000. The problem with buying land is what you want to use the land for. If you want to put a home there then you have to have a house built or a trailer put there, both of which are major expenses. Then the septic, water, power pole, etc has to be done and septic and water alone can cost $20,000 on top of whatever the cost is for the home.
It's difficult for a normal person to get multiple large loans to cover those different expenses which is why people typically go after a home with everything already there. If you can afford it, you can make land arable though but it would involve a lot of work and possibly more money than it's worth. You can have several feet of soil and dirt/clay removed and replaced with top soil that would be arable. The problem would be the cost because top soil takes up to 5 years to create.