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Napanee, Ontario | I have a simple Question.
How are they going to raise interest rates, when the US government owes 17 trillion dollars to creditors?
That's it... if you can tell me how that gets accomplished, I'll start looking at the land crash idea. People know how to multiply a percentage against an amount..... show me how it gets done, remembering they only have 2.1 trillion in revenues to work with each year (currently), and already spend 330-350 B in interest now.
I see the cheap commodities, but I also see record low interest rates. You neeed both for the land to start crashing anytime soon. People will keep borrowing money all day long when it's costs them nothing to do it.. lower the cost... higher they are willing to pay. Pretty simple.
Remember this, if you get your high rates... If the Fed stops printing, the whole world explodes into a massive infaltionary melt-up as people run from all forms of debt and US greenback as fast as possible. The credit makret in the States is measured in multiple of the equity market.
And then what happens to land? The same thing that's happening now to land and RE all over the globe.
Its the same result whether you print the dollar to smitherines or just shut er' down altogether - inevitable inflation of other "stores of value" besides currency as we know it.
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It IS Different this Time.
