How the power of Inflation & Deflation transform my MN real estate investing
We are in a global and US economy with both deflationary and inflationary forces colliding. Technology is exponential and borderless and growing even faster with remote workers.
We have a few very strong deflationary forces such as technology disruption getting more efficiency, negative rates around the world on bonds and fixed investments with dropping interest rates and baby boomers are now retiring daily and slowing down on spending after more that 40 years.
We have this AI vs. AI future which is Artificial Intelligence Vs. Artificial Inflation.
The inflation and fed printing is trying to offset the deflation and power of technology making us more efficient.
There are now stats that 65% of all US dollars have been printed since the beginning of 2020, so they are really trying to offset it since 1971 when the US dollar got taken off the gold standard without that backing that’s when the real inflation began.
Covid-19 shutdowns were a great accelerate of inflation and also technology with zoom and remote working. So the balloon and bubble is now way bigger than ever before.
The Price of Tomorrow Jeff Booth
Learn about how deflationary forces are taking on these inflationary forces and how the inflation will pick up with possibly hyperinflation.
Jeff discusses why we use technology to save time and make our life easier and more efficient. Now the inefficiency or the government, fed and printed money with inflation is colliding with deflationary forces.
Jeff will discuss artificial intelligence and how deflationary is a compounding effect. Also inflation is a compounding effect. He thinks the government with their inflation and shut downs is actually speeding up the deflationary cycle.
Jeff talks a lot about technology creates abundance.
You will start to understand how the manipulation of monetary policy and currency is leading to the wealth inequality that we see to this day.
Those with assets have been big winners the last 20 years and those without assets the last 20 years haven’t been able to catch up, especially as it relates to their retirement.
Jeff talks about artificial job growth that’s all all an illusion.
He talks about the division of the people in the world and how a lot of the book was even written as far back as 2018, and it’s starting to accelerate now.
Check out this latest video
Jeff Booth Inflation Vs. Deflation on Rich Dad Robert Kiyosaki click here
If you watch a few of Jeff booth videos you will see some repeated content, explanations, and stories, but it’s worth hearing again to let it sink in because it’s a lot of paradigm shifts. This is such a disruption from how we’ve been thinking.
Check out this latest video.
Jeff booth talks 80 to 90% asset deflation crash click here
Jeff discuses a need to raise taxes a lot, and $4 printed for every $1 of gdp growth. He wrote the book at the end of 2019 and he discusses $250 trillion in global debt, but u believe it’s over $277 trillion now near the end of 2020.
Central banks all across the world are racing to bottom and countries competing with each to loan out cheap money.
He talks about socialism, communism and the government is the entire economy and creative destruction is no longer there to create more efficiencies on another video that I’m watching at this moment. He also talks about how universal basic income, helicopter money, and stimulus isn’t the answer.
Negative Interest Rates
He also talks about -6% to -10% on your money at the bank. This makes people want to pull cash out of the banks. Check out what that looks like here negative rates
Check out one of the March interviews right before the real covid-19 shut down.
Jeff booth talks deflation on Real Vision click here
Even in Early March is prediction on a lot more fed printing and bitcoin as a hedge was very right looking back not knowing what covid would do at that time.
Jeff also talks about inflation and MMT being a hidden tax, which is a common definition even by people like Peter Schiff.
Jeff talks a lot about these coming paradigm shifts are well beyond what we learned in school as technology is growing exponentially and people can’t see it from the full view it’s just happening too quickly.
What’s also brought up on the Robert Kiyosaki Rich Dad podcast is how many are stuck in an Industrial Age but now we are past an info page into a cyber age.
I personally think we are in a data optimized network effects age.
None of the information in this article is meant as investment advoce, please do your own research.
Jeff gives examples of How blockbuster went out of business to Netflix because they didn’t see the speed of download speeds and they didn’t do much to be prepared.
He also talks about how Kodak helped develop the first digital cameras but still got passed up in technology because they didn’t fully see it coming.
Jeff often talks about how we no longer have free markets which I agree with.
There is a reference to the hyperinflation of weimer republic in a few videos. There is talks of the rise of hitler, revolt, revolutions based on the wealth inequality. Socialism for the rich and poor on each side.
Other great points that are being brought up by Jeff is that the fed money is going to the banks but they aren’t lending it’s going into stocks and assets.
The concerns are the destroyed currencies and wheelbarrows of money needed to buy things.
Jeff’s recent book the price of tomorrow is out now on amazon and audible.
Jeff mentions the $185 trillion boost by the fed in the last 20 years. It’s actually a lot bigger than that now.
A lot of macro economists like Peter Schiff talks hyperinflation and Harry Dent talks about deflation whereas Jim Richards discusses both hyper inflation and deflation periods.
Peter and Jim are very big on owning gold, many would agree with silver which is even more scarce and rare.
Deflation is a bad with negative effects for a debt economy, but Jeff says we are beyond that problem now.
I’m watching a video of Jeff’s right now comparing the US is following the Japan playbook of 30 years of deflation. The US is an aging country behind Japan.
A lot of the reason the US currency lasts so long is because it’s the reserve currency.
Jeff is invested in gold and bitcoin, more into bitcoin because of the network effect. He likes the portability of bitcoin vs Gold. Capital and money is going to chase yields.
The deflation effect with technology makes our money worth more. Inflation is our money inflating and eroding away.
Jeff thinks we end up with either hyperinflation Or a deflationary depression as an outcome like the 1930’s when we had the Great Depression
The future will come down a lot to chaos and order from technology, money, wealth, emotions especially around wealth inequality.
You can follow a lot of different interviews on YouTube of Jeff over 2020 from different speakers with a variety of different questions, but the general theme, and narrative is consistent. These interviews are out because of the book he has recently released in 2020.
With technology we trust that the algorithm brings us the best results.
I have watched videos on exponential companies and I watch people like Elon Musk and see how fast the self-driving car and EV market is moving.
Science, health, genome is all seeing technology so quickly.
New technology adoption is speeding up as you can see below.
Conclusion:
My suggestion you can read later in this article is how you can sell your Minnesota home click here , possibly downsize, become more conservative and buy a property with house hacking such as a silver Minnesota family home, townhome, duplex, triplex, four plex.
I know investors in Minnesota that I can introduce you to that can can help with solutions for those that want to buy or sell even with bad credit, high motivation or homes that are falling apart, that need $50,000 in fixups or haven’t need updated in 50 years. Property damage fire damage , water damage, mold damage, etc.
Then rent out rooms and other units as long-term tenants for monthly cash flow.
You can rent out for short-term like through Airbnb which will be a much higher vacancy rate, but the monthly cash flow are a lot more typically when operated efficiently.
My goal is for you to hedge your retirement and US dollars to reduce a lot of risk to the downside over the next decades with all of the disruption coming to the USA and the global borderless world that we live in as it continues to be more connected via technology and the internet.
I do think the idea of you house hacking and living in a 4 plex in a city of your choice while Airbnbing the other units or renting long-term you are going to enjoy your lifestyle and freedom from the monthly rents from the other tenants which gives you more freedom to travel the world, especially if the world allows you to work more remote.
When you stay with a four plex or smaller it’s considered residential vs. commercial which gives you benefits of FHA financing with only 3.5% as a down payment which I think that you’ll agree is a pretty low amount and easy barrier to entry.
Also there is a universal tax exclusion for single and married, $250,000 and $500,000 respectively of you are looking to defer taxes. Owning the home 2 of the last 5 years is key, please consult your tax consultant on the latest tax laws for Minnesota or your specific state.
I’m really into seeing you have a more efficient lifestyle, so any investing strategies that allow for that is my goal for you.
With remote work lifestyles, remote school and health concerns for many these days it’s great for you to have flexibility.
In this article for selling your Minnesota home you can get my personal cell phone number to text me with questions on some future plans of cash flow. You can also look into buying through this article through banks or no bank seller financing of buying a Minnesota contract for deed click here
The Minnesota contract for deed way to buy a Home is a popular way to buy because you don’t need to buy from a bank and in fact many who buy have bad credit and past bankruptcy, foreclosure, short sales or loan modifications.
I find that those who are self-employed business owners actually work out well buying contract for deeds because banks actually put borrowers in a box and those who are self-employed don’t fit into the banks box, especially if it’s a newer business.
Especially if you’ve had any disruption in income. A 10% down payment really speaks for itself when it comes to buying a contract for deed. I know local Minnesota investors that want to buy you a house of your choice on the market and sell it back to you. This is a very flexible program for you.
It’s a fun opportunity for those who keep up with the data-world that we are now in.
You can expect a lot more of this inflation vs. deflation narrative as it plays out in my future articles as I will continue to research YouTube videos and podcasts to listen what the latest paradigms of the US economy are.
I believe technology is going to continue to be a very exciting part of our future and I think more specifically crowdsourced optimized data and network effects will be very exciting in our time.
Thank you again for reading the article above it’s a really important topic for our future and what’s happening in this fast-paced world.
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