Inflation: Declining Purchasing Power, Record Debt, & Peak Housing Prices

In this 1-hour online Zoom presentation, I will share some of the latest data in regards to how and why asset prices and debt levels are both simultaneously rising to all-time record highs. How long can these asset bubbles grow in size? Will there be new investment opportunities for first-time homebuyers and long-term real estate investors?

Between January 2020 and October 2021, the M1 money supply (cash or cash-like instruments) quickly rose from $4 trillion up to $20 trillion in just 22 months. Money velocity, or money creation speed, is the true root cause of rapidly declining purchasing power and skyrocketing inflation. The more money in circulation, the less purchasing power for the dollar.

In January 2024, Americans were paying $213 per month more to purchase the same goods and services one year earlier in 2023 because of rising inflation and the declining purchasing power of the dollar. As compared with two years ago in 2022, Americans are paying $605 more per month. Sadly, we’re now paying $1,019 more PER MONTH ($12,228 more per year) today for the same goods and services we purchased three years ago in 2021, according to Michael Snyder.

Are we currently experiencing the best economic boom ever with all-time record high stock and real estate prices? Or are more investors moving their weakening dollars into hard assets like real estate, partly as a hedge against skyrocketing inflation trends? Can Quantitative Easing ever end, or have the Federal Reserve and US Treasury created a seemingly infinite hyperinflationary spiral?

Home values have never been higher in many U.S. regions than what we’ve all seen here in 2024. The Dow Jones index also recently reached an all-time peak high of 40,000 and the NASDAQ surpassed 17,000 for the first time ever.

American mortgage holders may now have access to a staggering $11 trillion in tappable equity that’s over and above their existing mortgage balances, according to the May 2024 Mortgage Monitor report from the Intercontinental Exchange (ICE).

The amount of residential property equity is so massive that if all 48 million homeowners spent $10 million of their tappable equity each day, it would take more than 3,000 years to exhaust it, as per ICE. This amount of residential equity available is more money than the Gross Domestic Product (GDP) of Japan, India, and the United Kingdom combined.

My full article link: Wealth Creation in a Hyperinflationary America

I hope to see you online on Thursday, September 12th at 12 pm PST.

Rick Tobin
www.realloans.com