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We Need A Crash To Sort The Wheat From The Chaff
Submitted by Charles Hugh-Smith of OfTwoMinds blog,
Once the phantom collateral vanishes, there's no foundation to support additional debt and leverage.
When a speculator bought a new particle-board-and-paint McMansion in the middle of nowhere in 2007 with nothing down and a $500,000 mortgage, the lender and the buyer both considered the house as $500,000 of collateral. The lender counted the house as a $500,000 asset, and the speculator considered it his lottery ticket in the housing bubble sweepstakes: when (not if) the house leaped to $600,000, the speculator could sell, pay the commission and closing costs and skim the balance as low-risk profit.
But was the house really worth $500,000? That's the trouble with assets bubbles inflated by central-bank/central-state intervention: when inefficient companies and inflated assets are never allowed to fall/fail, it's impossible to tell the difference between real collateral and phantom collateral.
The implosion of the housing bubble led to an initial spike of price discovery. The speculator jingle-mailed the ownership of the poorly constructed McMansion to the lender, who ended up selling the home to another speculator who reckoned a 50% discount made the house cheap for $250,000.
But what was the enterprise value of the property, that is, how much revenue, cash flow and net income could the property generate in the open market as a rental? Comparables are worthless in terms of assessing collateral, because assets are mostly phantom collateral at bubble tops.
Let's assume the enterprise value based on market rents was $150,000. The speculator who bought the house for $250,000 sold for a loss, and at the bottom of the cycle the house finally sold for its true value of $150,000.
Leveraged 20-to-1, the lender's loss of $250,000 in collateral/capital unhinged $5 million of the lender's portfolio as the capital supporting those loans vanished.
The first speculator who put nothing down suffered a loss of creditworthiness, and the second speculator lost $100,000 plus commissions when he dumped the property for a loss.
The only reliable metric of valuation is revenue, cash flow and net income, not at the top but in recession. One of the best ways to get burned/go broke is buying assets at the top of the speculative cycle and valuing them on projections of never-ending increases in revenues, cash flow and net income.
Then when recession crushes demand (as it inevitably does), revenues, cash flow and net income all plummet, and the buyer can no longer cover operating costs and interest payments.
In a highly leveraged financial system such as ours, when the phantom collateral vanishes, so does the illusion of solvency. Losses are forced down somebody's throat-- either the lender or the owner, or both.
When that happens, the ability of lenders and speculators to leverage debt on collateral is impaired: once the phantom collateral vanishes, there's no foundation to support additional debt and leverage.
And once the ability to pile on more debt and leverage goes away, the entire debt-dependent financial system does what this building in China did: collapse.

Analysis of the Collapse Of 13-Story Building in China
Shanghai building collapse (Telegraph, UK)
The only way to sort the wheat (real collateral based on enterprise value) from the chaff (phantom collateral created by central banks' speculative bubbles) is for a crash to force price discovery and the cramdown of losses.
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Not going to happen in Potterville.
Go on down to the bar and get yourself a drink.
You need to destroy the financial system in order to save it. Banks need to go back to basics
De-financialization should be the new word. Let's spread that
The correct term is Hyperbitcoinization - http://nakamotoinstitute.org/mempool/hyperbitcoinization/
Uh, welcome to 2008.
Needed a cramdown there too, never happened - now we wait for "confidence" to evaporate for real.
With all the Central Bankster manipulations since the financial crisis of 2008, all that has been left is the chaff. But somebody forgot to tell that to Yellen.
https://www.youtube.com/watch?v=t4opyR1fll8
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Wall Street fat bonuses all around for Christmas/Hanukkah 2015!
Yes, lordbyroniv, since the real world operates as a fractal pattern cascade of the methods of organized crime being applied to control the overall political economy, the calendar preferred by the those who are best organized gangs of criminals tends to dominate the orchestration of those events ... Meanwhile, the article above by Hugh-Smith was another example of the relatively superficial view of the depth to which everything is actually "controlled" by the long history of being able to back up lies with violence, which inherently drives that system to go out-of-control ... Until a new system of "control" can be re-established by again being able to back up lies with violence.
The entire political economy is based upon governments enforcing frauds by privately controlled banks, within which system everyone alive today was born and has lived. Various people adapt to the ways that the economy is actually based upon applications of the principles and methods of organized crime in different ways. It tends to be that the closer to the SOURCES of the public "money" supplies, which are created out of nothing as debts by privately controlled banks, through those frauds being enforced by governments, are able to do better within those systems, while those who are further away from the SOURCES of "money" made out of nothing do worse.
The deeper levels of that situation is that becoming aware of the lies does not stop the violence from continuing to back up those lies. Learning about how the accounting systems are fundamentally fraudulent does not stop those from continuing to be enforced. Rather, more rational evidence and logical arguments mean practically nothing to systems based on being able to back up lies with violence, EXCEPT to the degree that progress in physical science through paying attention to evidence and logic can result in the creation of technologies which enable even greater levels of frauds being enforced. (Such as the currently existing globalized electronic monkey money frauds, which are backed by the threat of force from apes with atomic bombs.)
The problem with wishing for the existing systems of enforced frauds to finally collapse is that the virtual world operating through being able to make money out of nothing to speculate with is at least a couple of orders of magnitude greater than the physical lives of flesh and blood people, who also happen to be using the same public "money" supplies to be purchasing food or fuel, etc. ... A complete crash of the established systems would result in that kind of "Crash To Sort The Wheat From The Chaff" eventually resulting in something like the miserable murders and various other forms of deaths of about 99% of the human population, due to everything being based upon runaway, triumphant organized crime so much, for so long, that the "corrections" of the degree to which things have become UNBALANCED are impossible to completely comprehend (especially since whatever survives through that will result in some of the seeds of the old systems of organized crime germinated to become whatever new kinds of organized crime could grow then ...)
The "money" made out of nothing as debts was used to "pay" for strip-mining the planet's natural resources. The "Crash To Sort The Wheat From The Chaff" would primarily be the result of running into the relatively objective limits of diminishing returns from being able to continue to strip-mine the planet's natural resources at an exponential rate. Since the entire political economy has become based upon organized crime being able to enforce it frauds, and that is what has totally dominated the political economy, the "corrections" to that magnitude of ERROR are beyond our ability to fully imagine. However, here is a link to attempt Simplifying the Final Countdown.
Furthermore, after any such "corrections," whatever emerges then will surely be another form of organized crime, still enforcing frauds, in whatever forms those are still possible, in whatever that future may end up finally looking like. Within that context, the majority of people will likely want to continue to rely upon the presumptions which are expresses at Hanlon's Razor, that the problems are due to incompetent stupidity, rather than due to deliberate malice. The reasons for that are because IF one looks deeper at the real nature of the problems, then the real solutions are no longer able to be promoted as based upon the same old-fashioned superficial views regarding what the problems were.
The vast majority of people are acting like incompetent political idiots. However, that is NOT the ways that the established systems actually work. Although the entrenched systems depend upon the vast majority of politicians being puppets, and enough of the muppets that vote for them continuing to act like deluded political idiots, that pattern of social facts was originally due to the prolonged triumphs of the core of those systems working through the applications of the methods of organized crime. Since the pyramidion people are the best organized gangs of criminals, what they believe has way more amplified consequences throughout human history, than whatever anyone else may think. It is inside that context in which we are approaching a super-duper "shimetah." (As becomes clear to anyone who looks into the overlapping "coincidences.")
The real world operates according to the methods of organized crime, and therefore, the best organized gangs of criminals are most able to orchestrate events. The deeper problems that we face are the degree to which the most triumphant applications of the methods of organized crime require that the vast majority of people do not understand those, because they have been conditioned to not want to understand those, which is why there is almost nothing but a core of organized crime, surrounded by layers of controlled opposition.
Most of that kind of opposition exists in this fashion:
"The absolute best controlled opposition is one that doesn't know they are controlled."
--- Cognitive Dissonance
In my opinion the vast majority of the content republished on Zero Hedge fit within that kind of "controlled opposition." The source of that has been the long, long history of successful warfare being based upon backing up deceits, with destruction, in which context being treacherous provided the greatest assistance. That was how and why we could end up having a political economy almost totally based upon governments enforcing frauds by privately controlled banks. From deeper analysis, the basics emerge that money is measurement backed by murder, since, the debt controls were always backed by the death controls, HOWEVER, the vast majority of people did not understand that, because they had been conditioned for generation after generation to not want to understand that, but rather, continue to think like "controlled opposition," probably without being aware of that, (such as is the case with Hugh-Smith, and most of the other content published on Zero Hedge.)
The crazy collapses into chaos were built into the established systems having been based upon enforcing frauds, which have the inherent contradictions that no matter how much frauds are enforced, those are still frauds. Therefore, the INTENSE PARADOXES are that the more socially successful the methods of organized crime are in controlling civilization, the more psychotic that civilization becomes. The most important way that works is that the triumphs of backing up lies with violence, in each short-term increment, eventually results in civilization behaving in ways which are increasingly manifesting runaway criminal insanities. In particular, there has been pervasive, ubiquitous, attitudes of deliberate ignorance towards the longer term consequences of basing the entire political economy upon "paying" to strip-mine the planet with "money" made out of nothing as debts.
In that overall situation, in my opinion, guys like Hugh-Smith are typical illustrations of the gross understatements regarding what the real problems are, which then are followed by gross overstatements of that the possible "solutions" to those problems could be. Since the perception of the problems tends to be quite superficial, it follows that the bogus "solutions" promoted are similarly superficial. Since money is measurement backed by murder, but that is deliberately ignored and denied as much as possible by the vast majority of people, we have no politically possible ways to develop better death control systems to back up better debt control systems. Instead, we automatically default to the longer term consequences of building the entire political economy on the foundations of governments enforcing frauds by privately controlled banks enabling the planet's natural resources to be strip-mined as much as possible, as fast as possible, with no politically possible ways to respond to that, since everything is being controlled by systems which are based upon backing up lies with violence, which are not good at anything else than continuing to back up lies with violence, and will not attempt to do anything else to respond to the problems caused by them doing that than continuing to back up even bigger lies, with ever more violence.
Since the best organized gangs of criminals currently most dominate the established sociopolitical systems, they will continue to organize their ever greater feats of organized crime in the future according to their own morbid social habits, as those were developed in the past. The INTENSE PARADOXES continue to be expressed by the excessive successfulness of those forms of organized crime, which included the degree to which their publicly significant opposition continues to be controlled. In that context, it would not be surprising to witness the future disasters following the calendar of the best organized gang of criminals, who most control events in the real world, or will most be able to take advantage of any crises which happened outside of their control.
There MUST be some human artificial selection systems, due to the surrounding existence of natural selection systems. Those natural selection pressures have drive the development of the currently existing human civilization to be based upon enforced frauds, as the result of the successful applications of organized crime. Meanwhile, most of the controlled opposition groups deliberately do NOT engage in deeper analysis of those problems, which would lead them towards confronting how and why human warfare developed, to become that the human murder systems were most socially successful when done through the maximum deceits and treacheries, which then enabled the creation of a political economy based upon enforced frauds.
The typical ways that the economics systems work now are that those are operated by the best available professional liars and immaculate hypocrites, whereby everything is presented in the most absurdly backwards ways that it could possibly be presented. People like Hugh-Smith, as well as most of the rest of content on Zero Hedge, engage in more correct analysis than found in the mass media etc., but nevertheless, that superficially correct analysis still tends to never go any deeper, and therefore, those who engage in that superficial correct analysis then feel content with proposing their relatively superficial "solutions."
Meanwhile, the real world continues to actually be controlled through cascading fractal patterns of organized crime. Those will drive there to be series of crazy collapses into chaos, and related psychotic breakdowns, due to the paradoxical final failure from too much success through directing the political economy to become based upon enforcing frauds, in ways whereby the eventual "corrections" due to everything being based upon bigger and bigger frauds, must necessarily be proportionately catastrophic. When Hugh-Smith refers to the "highly leveraged financial system such as ours" he is RIGHT, but his views of the degree to which that system is "highly leveraged" is a gross understatement, which is why he could recommend a "Crash To Sort The Wheat From The Chaff," without apparently recognizing what the full magnitude of such a "Crash" could become ...
Typically, the FIRST level of errors are to apply Hanlon's Razor, to presume that our problems are due to incompetent stupidity, whereas that apparent incompetent stupidity that seems to dominate public spaces is actually the result of the prolonged applications of the methods of organized crime, to actually control the political economy, through enforcing frauds, whereby most people adapted to that, for generation after generation, to become more and more deliberately ignorant regarding that.
Typically, the SECOND levels of errors follow from deliberately ignoring the basic laws of nature, or from deliberately misunderstanding the laws of nature in the most absurdly backward ways possible, since those are the roles of the controlled opposition groups that surrounded the central core of organized crime. Of course, there are INFINITELY DEEPER LEVELS ... However, the basic problems are simple. There must be some human ecology, within which the human death control systems operate. All of human economics must operate inside of that human ecology. The existing human ecology has developed to operate its death control systems through the maximum possible deceits, which then enable there to exist financial systems based upon the maximum possible frauds.
Overall, there are no genuine solutions possible which do not change the death control systems. Ideally, we should go through a series of intellectual scientific revolutions, in order to radically transform the ways that we think about the death control systems. However, that is merely an ideal, which is theoretically possible, while politically impossible, given the degree that what actually exists continues to be a core of triumphant organized crime, surrounded by layers of apparent "opposition" that it also controls. Therefore, the most probable defaults continue to most necessarily be serious social storms, which will blow through after we have already high-graded ourselves to hell, by building everything on the basis of being able to strip-mine the planet, as recognized to supposed to be "good things" to do, but only by fundamentally fraudulent financial accounting systems.
The established debt slavery systems have already generated numbers which are debt insanities, and those trends are headed towards causing death insanities. Those death insanities will continue to be organized by the core organized crime gangs, whose cultures will orchestrate those future events, as they have been similarly orchestrating events in the past. Meanwhile, it continues to be necessarily the case that human beings and civilizations operate as entropic pumps of energy flows, while our currently existing civilization has achieved the most absurdly backward ways of misunderstanding that possible.
Therefore, the only genuine solutions are better death control systems, while what are actually the far more likely default outcomes will be the worst possible death insanities. Tragically, since guys like Hugh-Smith continue to only be superficially correct, while otherwise profoundly wrong, they tend to grossly understate what the real problems are, and therefore, then grossly overstate their versions of what their bogus "solutions" could be. However, the established systems based upon enforced frauds will NOT fail due to their inability to enforce more frauds, (such as make more and more of the public "money" supply out of nothing as debts) but rather finally fail due to much more relatively objective ways that controlling the political economy through enforcing frauds engendered attitudes of evil deliberate ignorance towards what was really going on ... and therefore, the exponential growth of strip-mining the planet's natural resources will have spectacularly overshot, as far as it was possible to overshoot, before it finally collapses in crazy chaos, psychotic breakdowns, and runaway death insanities.
At this point in time, I no longer can hold on to any even irrational hope for that finite future. Of course, I can continue to hold on to transcendental hope. However, in the material world, the planet has been strip-mined as fast as possible, driven by the debt engines, creating the public "money" supply out of nothing in order to "pay" for that, and in that material world, there is nothing which could have prevented that from happening, since in each and every short to medium term increment, what was most socially successful was applying the methods of organized crime to the political economy, in order to make and maintain financial and political "successfulness" based upon enforcing frauds.
BOTH the core of organized crime, AND the surrounding controlled opposition groups, do NOT want to admit and address the ways that money is measurement backed by murder, since the debt controls are backed by the death controls. BOTH do not want to discuss how and why all private property is based on backing up claims with coercions. Rather, they want to continue to stake even more claims, that are backed up with even more coercions. That they are killing the planet, and therefore, collectively committing suicide, does not prevent them from continuing to maximize their benefits due to enforcing frauds enabling the planet to be strip-mined.
BASICALLY, the prolonged triumphs of controlled civilization through the principles and methods of organized crime are phenomena that practically nobody wants to better understand. Instead, the general desires are to continue to lie about all of that as much as possible. Hence, to lie about the current murder systems being actually based on the maximum possible deceits, as well as lie about what the only realistic resolutions would have to be, which would necessarily have to be better death control systems. Therefore, we continue to rush as fast as we can towards the established systems of DEBT SLAVERY BACKED BY WARS BASED ON DECEITS, driving through their numbers to become DEBT INSANITIES, that will provoked DEATH INSANITIES ...
As far as I can now tell, BOTH the core of organized crime, AND their layers of controlled opposition, will continue to be as anti-scientific as they can possibly be about human artificial selection systems, and to continue, as much as possible, to deliberately ignore the laws of nature that made natural selection pressures exist, in the ways that selected for human systems to operate their death controls through the maximum possible deceits, which then enabled the political economy to become based upon the maximum possible enforced frauds. The Grand Canyon Chasms between progress in physical science, without any surpassing progress in political science, will probably get wider and wider!
Of course, in the longer term, that will have incomprehensibly catastrophic consequences for the human species, and most other species of life, in the foreseeable future. However, there appear to be no politically possible ways for enough people to become able and willing to go through sufficiently deeper levels of analysis, in order to then promote more realistic resolutions of the problems which are consistent with that deeper analysis. The basic systems continue to be controlled by a core of organized crime, which will covertly orchestrate their way through the debt insanities provoking death insanities ... while, even then, there will continue to be no politically possible ways for enough human beings to understand themselves enough to change and adapt to do anything better ... Therefore, the collapsing "Crashes" will be postponed for as long as possible, most probably assuring that when those finally happen, those "Crashes" will be far worse than we can currently imagine. Hence, those eventual "Crashes" will NOT "separate the wheat from the chaff," but rather result in the overall destruction of the ability to grow and distribute enough food, because when the systems based on enforced frauds madly destroy themselves, they will be taking down almost everyone else with them ... Indeed, they will probably still initially be able to be orchestrating that to happen, according to their own morbid psychological and political habits.
"Whatever it takes". Drink.
I do not think there is anyone who really disagrees with you. However, it is in the interest of those who actually manage price to delude people into thinking that one thing will happen and then move in the exact opposite direction.
So, the question is: what is the feint and what is the killing blow?
8 years later (or perhaps 15 years? 102 years?), and we're still waiting. How long can currency be divorced from value? The question for this age...
It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. - Henry Ford
The more our society gets dumbed down Idiocracy style, the more people will believe whatever the CB's say. Debt, numbers and math do not matter to those ignorant of all three.
"The more our society gets dumbed down Idiocracy style, the more people will believe whatever the CB's say. Debt, numbers and math do not matter to those ignorant of all three."
That is the attitude that has gotten us to where we are and the one that is used as a rationale for murdering the so called "surplus population".
Reality is somewhat different. It is those who are obsessed with money and power who distorted the world and suppressed things so that they can remain in power. It is an injustice.
It's not the murdering of the "surplus population" I am rationlizing, simply the banker population.
We are living through the "anti-enlightenment".
Widespread education was great for creating wealth, but when the people at the top come to collect all that wealth that was created, they can't have those who created it getting in the way.
This is truly a dramatic shift in the fortunes of western society.
The only reason we had a crash in 2008 was that Lehman and a few others actually bet against the Fed - and lost. That problem has since Ben corrected, and now 'no one' bets against the Fed.
Thoughts required on gold, gold standard, and gold exchange etc.
So you have gold. Say you have 10,000 tonnes. Now what? Back 20% of the fiat currency supply with gold?
So, if you have a finite amount of gold, say 10,000 tonnes, and you have fixed the price of gold at 2,000 an oz, but you have reached the limit of central bank fiat that can be created. What to do?
Thoughts please on gold standard and gold exchange etc.
Example. Gold backed currency at 20% gold reserve. 100 oz of gold total supply. An oz is fixed at $1. How much fiat can be created? If 100% reserve ratio it would be $100. So for 20% gold reserve ratio, it would be $500.
Now what. How do you expand fiat supply if need be? Easy. Reduce reserve ratio, or increase dollar value of gold. So, at 20% gold reserve ratio, 100 oz total gold supply, and at $10 an oz, how much fiat can exist?
Answer. $5000.
So if you hold $5 in cash when an oz of gold is $1 and gold reserve ratio is 20%, and you wake up the next day and the price of an oz is now $10, then your claim to gold is now?
You cash has lost value. Your claim to an oz of gold is now 1/2 an ounce. If there was a sudden urge to redeem fiat for gold, and the people lost faith in their currency, then the price of gold could be elevated to essentially deflate the value of cash. Happy days.
PS - IF you think Bernie Sanders is gonna save the U.S., you need to wake up
Thoughts? You create a paper Gold market. If that doesn't work you create Credit Default Swaps and Gold Backed Securities and sell them like mad to pension funds and little towns in Norway.
I forgot about pieces of paper with a picture of gold on them being passed off as physical. Quite handy. Virtually unlimited supply. I think its time to bring price of gold down to $1 an oz. FED can put the contracts onto its balance sheet.
The fed, always wrong, but never in doubt.
Having some difficulties lining up your ducks are ya?
I am curious about how to manage the money supply, if fiat were to die. Go back to gold and silver certificates with their respective bullion being held in local and state banks at 100% reserve. If the market were to set the price, then the government could be eliminated from meddling with money supply. Is this a good thing, and why? Did Ron Paul write a book about the vagaries of these matters/
Don't bother trying, you can't administrate your way out of this hole __, it's a sticky issue, leave it to the experts, go watch a good movie in an old theater with the time you have left.
I have no interest in ignorance. I signed up to reality a few years ago now. Ignorance is futile. Knowledge is power. Most people are stupid. Which one am I?
You'll have to look in the mirror , and turn your head to find out.
If I am stupid, the Dunning-Kruger effect will surely make that decision for me.
Unless you answer this question, Charles, there is no hope against financial repression. The test on the Guinea Pig (Greece) is over. One of the outcome that I thought occurred - that nothing bad happend to the others. The other outcome was beyond my imagination i.e. the loss of sovereinty. People think this question is incomplete - then complete it and solve it. You guys talk about honest money all the time. So, it is time you define what is honest money.
I buy a new house from a builder for $720,000 at 5% p.a. cost (interest on mortgage is 5% per annum). Find out the risk_free-zero_profit lease price for this property at 5% p.a. price_inflation? Yes, just based on the above information you need to find out what should the landlord charge the tenant as the first month rent such that the landlord does not make a profit. Also find out the next month rent if rents are raised monthly or find out the starting rent for the next year if the rents are to be raised annually.
http://just-a-thought-from-thinair.blogspot.com/
There is no "risk free" lease price for anything. In the question above, what about real estate taxes and maintenance? How about occupancy %, you don't think this property will have 100% occupancy for 30 years do you? The monthly payment on 720K @ 5% using a 30yr amortization is $3865.12. I don't know where the property is located but you are looking at about 5K/month rental price to cover the other aforementioned expenses you left out of the equation, that's just a WAG, it could be MUCH more depending on where the property is located.
Here's the "risk", what happens if the economy really shits the bed and the renter can't afford his rent but decides not to move? Last year I spent 9 months and about 10K to remove a deadbeat renter out of a house. You got the 5k/month and legal fees in a bank account to handle that kind of debacle? Now what do you have to charge to get a "zero risk" return on that house? I don't think these are the times to be speculating on rentals, just my own opinion and I sure as hell wouldn't be rolling the dice on 3/4 of a milllion dollars rental. Get cashed up, out of debt and stack PM's, cash (in hand) and food. Sooner or later this house of cards comes tumbling down.
thanks for attempting the question. Only those things are sold that the seller does not want. And if the seller has nothing better to buy, it wont sell. My question is an attempt to find the honest rent. From there you can add on risks and then come to the final rent. Bye the way, your answer is incorrect, but that is not important. The inportant thing is that people should now start asking the questions ... more so about the assumptions. They may not be vaild... probably were never valid, we never allowed it to be validated.
A crash will never be allowed to happen.
Disagree. Nobody "Needs" to experience a crash that brings chaos, drama & tragedies. We don't NEED a crash to teach a lesson to the greedy, the ignorant, the unprepared and the beguiled. But the system run by the sociopaths is such that it is inevitable. The system relies on stupid people to do its bidding and that is why the mainstream media are advocates of ignorance.
The greedy pricks who cut corners to make a quick buck, the flippers who rely on a cheap deal, the families with ambitions to become landlords and the middlemen who rely on turnover. They are all small timers compared to the money lenders who enabled this whole charade. Honest capital tries to find productive lending opportunities and since there is no such thing in existence as money pops out of thin air these days, all it does it blow bubbles and ruin lives.
when the walls come tumbling down. shoddy china supplied junk homes litter the countryside.
anything built in the last 10 years is a pos. end of story, act accordingly. debt free is the ONLY answer to a world aproaching 3x debt/ phony gdp figures. its all bullshit til the walls come tumbling down- soooon, ha...
tthanks CH, another stellar post!
I built my own house 9 years ago. Metal frame, sheathed in 14 gauge galvanized, brick and metal exterior, hurricane strapped. Framing package Rated to withstand 152 mile winds. Fema is in town for disaster relieve because we Had 2 tornadoes. I really think it was just some hellacious high sheer wind.. I looked outside and the yard trees were horizontal. Lots of Homes with big oaks sitting in their living room and people in trailer houses are gone. Lots of families being relocated beause of starting the school year without housing.
I did not even get in the safe room and did not lose so much as a screw. I know where I live, its freaking Oklahoma, tornado alleys butthole.what were you expecting, build accordingly geeze.
Any avialable internet links discussing/showing the general structtural design?
Thanks.
I used these guys but there are hundreds of metal building companies that will design you a package.
My neighbors boat shed is stuck in one of my other neighbors roof. And now I see lots of people driving real slow looking at my house and scratching their head. I guess their mothers never read them the story of the Three Little Pigs. LOL.
https://www.lthsteelstructures.com/building-types/steel-framing-kits-cus...
Is this part of a comedy routine?
I wonder how much my stacks of ammo, liquor, tinned herring, and carefully-stored tobacco will be worth then the shit really hits the fan.
It's like the game Jenga. You can get really good and at it but you can only add just a few more blocks before the whole thing crashes down. The trouble when building a house of cards is at some point, the house of cards has to be left alone or maintained. Try to grow it just a little more and it crumbles.
Despite the logic, despite the desire for reality to intervene, in the current financial and legal climate as long as there is a market some middle man will intervene between you and the house you want in order to skim profit. CHS's premise is that no one wants the house to begin with, that some flipper bought it in order to jack the price and make a buck. That's not entirely true as the market doesn't consist of flippers selling to flippers. The majority of houses have people living in them, people who want to live where they are. Perhaps they are people who bought more than they could afford or they bought cheap crap at high prices or they bought from someone who beat them to it and raised the price just because they could, but nonetheless the house is occupied and lived in. The true problem is not that housing is overvalued junk but that everything has been commoditized. Long before you put gas in your car, that oil being pumped from the ground has been bought and sold 10 times by people who never owned it. The house you want to buy has been bought and sold several times by people who never lived in it. The food you eat has so many fingers in the pie (literally and figuratively) for cost increases but only the store you bought it from and the manufacturer with the name on the front get the blame. It's the curse of our society that there are so many middlemen just looking for leverage. It's HFT principles at slower speeds.
So when does it stop? CHS says it'll only stop with true price discovery, which will only come with a crash that seperates the wheat from the chaff. I say it only ends when the middleman himself sees the error in his ways and stops creating the problem. What makes CHS think that the same middleman causing troubles in the sale of wheat/chaff won't still be causing trouble when people are more concerned about buying just wheat? What makes any of the people involved in CHS's scenario change their professions and become productive members of society? The unwritten reason is that times of crisis impose penalties on those looking to gouge, those looking to act as middlemen to skim profit off of the wheat everyone wants. People are no longer as willing to look the other way when someone makes unwarranted "profit" off of the sale of a necessary commodity. But the concept is so ingrained in people today that I don't see a crash getting rid of it. People's actions don't change to something different than what they've been taught and what society has reinforced as being valid unless there is a personal reason to change. Crash and cramdown only makes the hustler hustle faster.
Not going to happen. There will be no "cramdown" or adjustment. Any "crash" and the Fed and Uncle Sam will go into money-printing overdrive.
it will get ugly - US Government will be sending out checks for $1000's to anyone and everyone, and the political pandering to special interests and race will get disgusting.
The Fed will be monetizing debt and increasing the money supply like crazy.
Remember, this project is more important even than the Euro - the American Empire must be maintained.
Call me crazy. I'm renting, liquidated my RE (homes) holdings, and am stacking like mad. I hope I'm wrong, but either way, I'll be better off. Wrong about a crash or a survivor of one. Can't think of a better hedge position right now.
Spain for example: Is litered by "luxury seaside resorts" but no one lives there.
Toil away in the stock market for 4-6%
or
Invest in my paradise that will make you 10-20%!
And in terms of Chaff,
How about the 100+, billion dollar valued start-ups. suuuure snapchat, you're worth 16 billion.
real price discovery will send the united states into third world territory. forget it, they will print until the those houses are 10 million each.
The world economy has been in a productive nosedive since September 2001 when the focus shifted from trade and productivity to the feeding of the miltary beast and a false "war on terrah". With a shift from the creation of wealth to the creation of chaos in need of a miltary solution, the factors that create demand for goods and services have been severely disrupted. The recent financial shocks in Greece, China and Puerto Rico are merely symptoms of this decrease in wealth. When these shocks come home to roost in the U.S., there will be a choice to either accept the fall in asset prices or double down on worship of the military and start World War III. It may just be me, but I hope they choose the former and allow asset prices to fall - there will still remain plenty of opportunity for the banks and the war machine to make their "killings".
Everyone is wheat intolerant anyways...learn to eat chaff
Is this post premise fiction or reality? We haven't arrived at that point in time yet. So as I will continue to point out anything is possible but not without each individual taking committed and decisive action towards their goals. And as I've pointed out we don't need to take this path. As a matter of fact this is a warning of the path that we are current headed towards. There are those that want us to take this path and those that do not. And many are caught in the middle, on the fence or completely unaware of what may transpire. Each one will need to decide which way you want to go soon. Let me share some insights based on my professional experience.
Truth does not fear questions. And truth does not have protective layers. But in this current paradigm it has both fear and protective layers on all sides because there are sides and for a reason. It does not have to be this way just like the future is not written in stone. But it is currently and temporarily this way and being carried out in this fashion. That can change but not without a tremendous amount of hard work and dedication, commitment and resources to successfully attain a new path and new future.
And so for those that would seek to unite and change the current paradigm it would be foolish for their leadership to disclose their full and complete intent to their competition. I can accept this. So know that there will be many things that happen that not everyone will understand. These may not only be tests to assess their opponents but tests of each individuals faith and commitment to their intentions and spiritual beliefs.
I know my commitment is to the right path that I am confident will benefit everyone. This commitment is undaunted and timeless. My perseverance is unshakeable. And I would hope those that seek a similar path have that same faith in themselves and their respective spiritual beliefs to know that together we will prevail.
Are you hedging your bets? Or is the slightest apparent setback is dissuading you? Please consider that each of us, even at the highest known levels, do not know the full and complete truth of each situation and its intent. It is my humble opinion that there are undoubtedly influences of the highest order involved in what is happening. I have the full faith and confidence in my spiritual beliefs and path. Each of us will be tested in many ways. And we learn and grow stronger from those tests. I will not fail and those of you that seek a similar path will not either. Therefore, I have no fear and will never lose faith. And neither should you.
One very interesting part of this essay was the picture of two collapsed buildings in Shanghai. Note that they are lying full length on their sides. In the case of the World Trade Center, the official story is impossible, of course, because no steel framed building has ever been brought down by a fire. But, for speculation's sake, let us put aside that impossibility and suppose that those three buildings in NY actually fell from the impact of airplanes and fire. One would then expect them to fall on their sides or against surrounding buildings as in the Chinese case. Instead, they fell perfectly in their footprints just as one would expect from a well-executed controlled demolition. Could anything be more obvious? The World Trade Center demolitions were a case of massive lying and treason by many participants. Will they ever be brought to justice?