I'm going to tell you about how the next economic collapse will play out in about 3 years. And that you can secure your own household immediately if you change your attitude towards the world's problems. Largely by ending your blame of wealth and power and looking in the mirror at what you and your
household can actually do to successfully stay safe. Calling power to account is a terrible mistake of the ego and will put your family in serious jeopardy.
household can actually do to successfully stay safe. Calling power to account is a terrible mistake of the ego and will put your family in serious jeopardy.
I'm forecasting that during the coming great recession, in around 2026, government's will bail out ALL mortgagors. In other words, even if you cannot afford to pay your mortgage, government will bail you out.
Either through refinancing central banking and forcing them not to process any defaults. Or directly rescuing home owners who are under water using direct payments of cash. More likely a bit of both.
If you look at the past 2 economic collapses in 2008 and 1990, maybe even 1972 - each of which was caused by speculation by homeowners in real estate through mortgages - governments have been slowly increasing the scale of homeowner bail outs. Up to the point most recently where all indebted households get to take the goodies without needing to do any work in exchange.
In the past governments have been selective about which household class gets a bail out. This time will be different. Free goodies will be offered to all homeowners.
Why? Because homeowners represent the overwhelming majority of voters in any constituency, no matter what their politics. No longer are voters swinging between different party's that important. What matters is the party can now buy your vote in exchange for the nations biggest debt - your mortgage. The party will pick up the tab. This theory is sometimes called 'The Uniparty'. This is, democracy!
Can you imagine any voter, no matter how green, no matter how wealthy, who would turn down such an offer? And then you have the great masse of the poor, about 15% who do not own real estate outright or freehold(free from rent) with a mortgage. The working class are no longer relevant, even to the socialist. Likewise for the small proportion of young people.
What about businesses and buy to let landlords etc? Governments will buy the loan and sell it back to you on better terms than you got before. It's a still a bail out. I expect the knowledge about this gleaned during the pandemic will be utilised more intensely.
It will need to be managed carefully because there will be many more trillions required this time. The UK alone has 15 million mortgagors. 15e6 * the average house price of £300e3 is about £4.5 Trillion in UK money.
Bail ins will be funded by those who save cash for rainy days, business with a large savings in capital but no monopoly on anything and tenants who will gain nothing except higher rents and more work. And of course, as history testifies to so frequently, the young and the poor in general. I'm not particularly sympathetic about the poor - who need truth speaking to them just as much as do wealth and power. I am simply pointing at it for the head of the household to observe and make confident decisions on.
During the pandemic it became clear, perhaps by accident, that EVERYONE can be bailed out and the economy keeps growing anyway, through the crazy furlough policy bail outs. Obviously this is kicking the can down the road, and, raising house prices even more. So the fundamental problem is not resolved, just laid off for a while.
Here's the trick: the fecund householder must accept that the modern economy now has so much productive power through technology, that even utterly foolish costly policy will quickly wash over and be covered up by growth, without the need for lying anymore. Imagine that - politicians no longer need to lie!
Now, I'm not saying this is a good thing. Nor am I saying I agree with it. I am saying this is what will happen. And that if you want to secure the future of your household and your descendants, you will take note and consider it very carefully in all financial decisions. I can't help you with these decisions. It is entirely a matter for you to decide. You are the final arbiter on this, the biggest of all financial decisions you will make in the present and near future. This is on you. Own it and make way.
The advantage of this to your household is because you have decided on your own future, you will be back in control of your own destiny, in spite of the nonsense fantasy politics we see on the media every day. Particularly social media. That puts you at a significant advantage over the rest of the population who follow whatever they are told...and gamble on hope with their family.
I have told you how the next economic collapse will play out in about 3 years. And that you can secure your own household immediately if you change your attitude towards the world's great problems. By ending your blame of wealth and power and looking in the mirror at what you can actually do to stay safe.