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| The $us is currency, a unit of exchange, it is not wealth. Wealth is the assets that are bought and sold with the dollar used as medium of exchange. So holding land is wealth, holding dollars is a loosing deal. It has always been this way yet we were told to save dollars, what is changing is people are learning holding assets is the correct way to function in our finacialized-everything world. People are unloading dollars for stocks and bonds because the dollar is constantly loosing value, because the dollar is not wealth.
There are some that say the $us will never go away or that it is strong or doing well. Your look and land prices is telling you what the real strength of the dollar is - and its not good. And so we are seeing more people understand this and making more effort to unload dollars for things of value. Land isn't gaining value, its still the same chunk of dirt as 30 years ago, and if it can't generate the same return to cover interest costs or revenue to purchase other things on the farm then it is actually loosing value. But more importantly what is being seen is the $us is loosing value and that is seen in how many more dollars are needed to buy land. If land value hasn't changed yet more dollars are needed then it is the dollar that is changing.
So there will come a moment where some people realize it is the dollar that is becoming worthless and it doesn't really matter if land creates a return in dollars - because they are actually getting rid of dollars in the first place to acquire something of value instead. Getting more dollars back is not necessarily their goal.
And the reason why the dollar is loosing value is our system is a debt based system. It is built on expanding debt. And as we move farther along the debt expansion has to increase in magnitude to keep it from collapsing. A farm that needs $10,000 to put in a crop soon needs $100,000 for the exact same inputs to make a crop. Same inputs, but the dollar has decreased in value.
Every time debt is expanded more currency units are brought into existence. More currency units added to the system devalue the existing currency units in circulation. Land went up because debt was cheap, it was easy to get loans so many loans were acquired. This led to many more dollars chasing the same piece of land. All dollars were devalued and so more dollars are needed. The land itself never changed - it is the same chunk of land as before the number of dollars in circulation were increased.
Government debt is expanding. It is not simply bec0they are dumb, it is because government is part of the system that expands debt. The more government and private debt expansion then the more devaluation of the currency. And if it takes more dollars to have the same impact as a year before, then we get to exponential debt expansion. And we are already at that stage. So some people are likely seeing this reality and more actively unloading dollars than another guy.
Government debt expansion is saying the dollar is being devalued at a more rapid pace than 10 years ago. It is not going to change because that is not how the system is designed.
 (total us debt record 34.jpg)
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 total us debt record 34.jpg (63KB - 16 downloads)
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Has the game changed cont........
