Jefferson's Warning

"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered." Sound familiar? Just remember, Cash is King. Debt is for losers. The only way to win the game is to not play it and stick to your guns.

"My point is simple…. Inflation is here, it’s here to stay and it’s here to really, really, really ***k us up." This is a quote from an article on Morning Porrige. Here to stay? Hmmm. I disagree. We have an economy that is 70% driven by consumer purchases. In case no one has noticed, the consumer is "tapping out". There is a finite amount of debt (and the misery that always accompanies debt) that the consumer can handle. What’s next? Ten year loans on used cars? 50 year mortgages? Better yet – generational mortgages that can enslave not just the borrower but his descendants as well? Don’t laugh or think it impossible – the idea has been tried. From Science Direct: "A recent innovation in the Japanese real estate industry to promote home ownership is the creation of a 100-year mortgage term. The home, encumbered by the mortgage, becomes an ancestral property and is passed on from grandparent to grandchild in a multigenerational fashion. We analyze the implications of this innovative practice, contrast it with the conventional 30-year mortgage popular in Western nations and explore its unique benefits and limitations within the Japanese economic and cultural framework. Through the use of simulation, the conclusion is reached that the 100-year mortgage has failed to increase the affordability of homes. Instead, affluent homeowners are more likely to employ long-term mortgages as an estate-planning tool to reduce inheritance taxes." The cure for high prices is....high prices.