In the “good ol’ days”, a single salary afforded a home and took good care of the entire family. In today’s world, two salaries barely keep up rent and car payments and not much is left over to enjoy life.
When I sold my home last year after 18 years of ownership, it had increased in currency value by over 450%. I don’t know anyone’s salary that increased by 450%. Add to that increased taxes, skyrocketing food prices, higher borrowing rates, escalating fuel costs, etc., and, well, homeownership is a pipedream for too many.
I credit John Rubino for posting the above graph that shows new housing developments have increased however 15% of people in the U.S. – 10% and escalating in Canada – are backing out of deals, “The highest percentage of any June on record” according to Redfin RDFN
De-dollarization has begun as the greenback begins to lose its power as the world’s reserve currency. When a currency is backed only by confidence in its government, it’s only a matter of time before that currency is replaced. Russian news, TASS, reports exchanges in local currencies moving forward “Shift to settlements in national currencies cannot be stopped — Lavrov - Russian Politics & Diplomacy - TASS which will help to stabilize other countries’ economies (great video on de-dollarization right here Bing Videos.) When those U.S. dollars come flooding back home, the increased money supply will further reduce the value of the dollar - more money the less its worth.
Inflation numbers do not include housing, food or fuel. And you don’t need to be an economist to see that you can’t buy nearly what you did even a few years ago so I popped these stats under ‘intellectual’ because we need to fast track our learning and prepare for what’s next.
The strategies and choices will be different for everyone based on priorities and needs and each of us needs to decide for ourselves what that looks like. For me, I figure it’s better to be two years early than one day late so part of my strategy is to convert some of my FIAT currency into gold and silver, which, for 5000 years has always been money. If you’re curious as to what that might look like for you, email me personally [email protected] for the link to the next Wealth Strategy session.
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