the great reset and mortgages

[Ebie]

Will the great reset help home owners with mortgages or hurt them?
There are many scenarios where it will benefit home owners with mortgages.
But can we think of a negative one?
Here is one:
1) reset occurs, new currency, digital Amero,
2) Different exchange rates:
a) T Notes: 100 dollars = 1 Amero
b) Private mortgage owing citizens, 1 =1
What do you think?

 

[Voodoo]

You can't have an exchange rate of 100:1 for cash and 1:1 for debts.

 

[Ebie]

You can't have an exchange rate of 100:1 for cash and 1:1 for debts.

I don't know the history that well.
I think that countries have defaulted on foreign debt, but, paid, a portion of domestic debt.

 

[TAEZZAR]

What do you think?

Smoke, mirrors & snake oil salesmen in the night !! The sheep NEVER prevail !

 

[Bigfoot]

Will the great reset help home owners with mortgages or hurt them?
There are many scenarios where it will benefit home owners with mortgages.
But can we think of a negative one?
Here is one:
1) reset occurs, new currency, digital Amero,
2) Different exchange rates:
a) T Notes: 100 dollars = 1 Amero
b) Private mortgage owing citizens, 1 =1
What do you think?

I think that's a great question. Some people are saying hurry up, borrow and buy, because the inflation will kick up real estate. But, if you look at how this country, and the greater world, became enslaved to these people, it is through taking on debt. Another point is that The Great Reset is a major job-killer. Will jobless people on UBI be buying real estate? Where is the foreclosure rate headed? Or, will there be hyperinflation like 1920s Germany?

 

[solarion]

Better to move away from secured debt, into hard assets, and await the inevitable. Once the final decision is made to sacrifice the scheisse dollar, there's no telling where it will end. Perhaps more importantly, there's no telling what others will do while it's happening or in the aftermath. Therefore a planned reduction in future known unknown variables is the correct response.

 

[the_shootist]

I think that's a great question. Some people are saying hurry up, borrow and buy, because the inflation will kick up real estate. But, if you look at how this country, and the greater world became enslaved to these people, it is through taking on debt. Another point is that The Great Reset is a major job-killer. Will jobless people on UBI be buying real estate? Where is the foreclosure rate headed? Or, will there be hyperinflation like 1920s Germany?

Taking on debt because you think the system is ready to collapse and you'll make out like a bandit isn't something I'd feel too comfortable doing for these very same reasons. Debt is what's been used to enslave us all. I'd rather be sitting on the sidelines with my protected wealth watching the whole thing play out than placing myself smack in the middle of something which I have no idea how it will turn out. If I can't afford to pay cash for it, I ain't buyin it!

The bankers are much better at knowing how to screw me than I am at trying to avoid being screwed by them!

 

[gringott]

No debt no worries.

 

[Scorpio]

shoot,

as a follow to yours, it also restricts your flexibility, not to mention all the drama with playing that debt roulette game

long ago, we talked of this thing being just a game of musical chairs, and when the music stops, you might want to be sitting,

sitting means not way out on the risk limb, and especially in illiquid assets

then too, you have the potential opportunity lost, as you cannot react to what the future holds, but your future is already determined for you

now of course what I just stated is countered by:
-.gov tossing freebies to slaves regarding healthcare, college loans, free tuition, foreclosure stoppages, rent payment stoppages, etc.

 

[Silver]

I'm consider taking on RE debt. I can't imagine the dollar holding value long term. This is not to flip, but to live in.

 

[Ebie]

Better to move away from secured debt, into hard assets, and await the inevitable. Once the final decision is made to sacrifice the scheisse dollar, there's no telling where it will end. Perhaps more importantly, there's no telling what others will do while it's happening or in the aftermath. Therefore a planned reduction in future known unknown variables is the correct response.

Do you agree with Dave Ramsey: Sell your PMs now, before the hyperinflation, to pay off your mortgage?
(That is what he seems to say--I think.)

 

[TAEZZAR]

No, hold them for further inflation, then maybe.

 

[the_shootist]

Do you agree with Dave Ramsey: Sell your PMs now, before the hyperinflation, to pay off your mortgage?
(That is what he seems to say--I think.)

I agree with the premise in principle but not sure now is the right time. Like Taezzer states, I think it's a bit too soon to play that hand. I've worked tremendously hard to pay all my debt. I've been fortunate in that my home mortgage is the only long term debt I have left and it's pretty small compared to a typical modern mortgage amount. I could liquidate some assets and pay it off now but, given that my property taxes are bumping up around 9K year now so I don't see the point of using liquid resources to rush ahead and pay off the mortgage. I'll never really outright own my home. It will always be a (tax) debt as long as my name is tied to it.

 

[Ebie]

I agree with the premise in principle but not sure now is the right time. Like Taezzer states, I think it's a bit too soon to play that hand. I've worked tremendously hard to pay all my debt. I've been fortunate in that my home mortgage is the only long term debt I have left and it's pretty small compared to a typical modern mortgage amount. I could liquidate some assets and pay it off now but, given that my property taxes are bumping up around 9K year now so I don't see the point of using liquid resources to rush ahead and pay off the mortgage. I'll never really outright own my home. It will always be a (tax) debt as long as my name is tied to it.

Good post.
I agree.
However, as I said in my original post, it is possible to think of theoretical scenarios where Dave Ramsey would be right.
However, most scenarios argue for a balanced approach.

 

[Lancers32]

Glad to be out of debt. I can't see how the average stiff benefits from whatever is planned. Hope I can afford the property taxes and I am in a relatively low prop tax state.

 

[Buck]

idk, isn't the 'debt game' a bit like playing the stocks? risk is on, but leverage is available also, using someone else's money to make some of your own type thing...we can all do that to some extent

why not have a bit in 'play' as much as the traders put something up for risk, looking for that 'advantage'

we don't really know what's going to happen, some debt could be forgiven, free and clear, check a box on your tax form, idk, for others, debt is nothing more than a data collection point, but, if you've got nothing to hide, as they say, take their interest free offers, suck them dry right back

can't do that if you're completely disconnected...like playing a bit of Bitcoin, investing a bit into stocks, physically stocking items, playing with debt, imho, should also be in play, with limits, just like everything else

DYODD

 

[rte]

Do you agree with Dave Ramsey: Sell your PMs now, before the hyperinflation, to pay off your mortgage?
(That is what he seems to say--I think.)

Hard assets will be better than cash if the cash is devalued.
That's just common sense.
The rest is which one appreciates with the biggest % the fastest.

 

[rte]

Glad to be out of debt. I can't see how the average stiff benefits from whatever is planned. Hope I can afford the property taxes and I am in a relatively low prop tax state.

AMEN TO THAT.
Same boat here...

 

[Silver]

I'm debt free also, we own a downtown property free and clear, and paid for the rehab as we've gone along. We were going to live at the property, a business/homestead, but after experiencing living there, we didn't like it, too much traffic and noise, even out here in the last frontier. So, we rented a house, an 120 year old adobe up by the mountain. We've rented from owner for 3 years and we give her 6 months worth of checks at a time, and she deposits them on the 1st of the month. She likes it this way - no hassle. The owner told us that she would sell it to us and carry the note.

First off, it's a fantastic house and location, and the price is reasonable for out here, which is a super expensive area for RE. A neighbor is moving to El Paso, they're buying a new 2000 sq ft house with all the upgrades like granite countertops for 190k - you can't buy a fixer upper for that money out here.

I figure if we're going to pay rent anyway, and can get the deed for a down payment and a little more per month, it would be a smart move. A good hedge and a good investment outright.

 

[Tbonz]

I agree with the premise in principle but not sure now is the right time. Like Taezzer states, I think it's a bit too soon to play that hand. I've worked tremendously hard to pay all my debt. I've been fortunate in that my home mortgage is the only long term debt I have left and it's pretty small compared to a typical modern mortgage amount. I could liquidate some assets and pay it off now but, given that my property taxes are bumping up around 9K year now so I don't see the point of using liquid resources to rush ahead and pay off the mortgage. I'll never really outright own my home. It will always be a (tax) debt as long as my name is tied to it.[/QUOTE]

And that right there is what is wrong with our country, no REAL ownership of property, EVER.

 

[Thecrensh]

My scenarios for the great reset:

1) economy collapses
2) most/all people lose their jobs because zero credit for anyone (except mega corps owned by the globalists pushing for the reset
3) increased and very high taxes on the "rich" to "help"
4) anyone prepared for said economic crash will be designated "the rich" (property tax will be through the roof an unaffordable)
5) PM ownership outlawed via 1933 EO redux
6) The super elite own everything

 

[Jarrod32]

Hard assets will be better than cash if the cash is devalued.
That's just common sense.

So then it would make sense to borrow money to buy hard assets (mortgage to buy a house), and eventually pay the loan off with devalued currency while holding the underlying appreciating asset.

 

[Ebie]

My scenarios for the great reset:
1) economy collapses
2) most/all people lose their jobs because zero credit for anyone (except mega corps owned by the globalists pushing for the reset
3) increased and very high taxes on the "rich" to "help"
4) anyone prepared for said economic crash will be designated "the rich" (property tax will be through the roof an unaffordable)
5) PM ownership outlawed via 1933 EO redux
6) The super elite own everything

Good post.
They might try a wealth tax.
If your house is worth $1M you might need to pay 2% per year to the fed gov.
If your equity in the house is 50% you might only need to pay on your equity.
I heard that a wealth tax has already been proposed in congress--I heard.

 

[TAEZZAR]

Good post.
They might try a wealth tax.
If your house is worth $1M you might need to pay 2% per year to the fed gov.
If your equity in the house is 50% you might only need to pay on your equity.
I heard that a wealth tax has already been proposed in congress--I heard.

AND inflation is their tool to bend you over !!!!

 

[Casey Jones]

Do you agree with Dave Ramsey: Sell your PMs now, before the hyperinflation, to pay off your mortgage?
(That is what he seems to say--I think.)

I don't think Ramsey thinks the system will go splat.

What I would do, if in that situation: Hold your debt, but have it covered - in inflation-proof money, as best you can. I would say, gold. If you're in bitcoin, you might want to sell enough to cover your debt - and store it in a more-secure way. So that when things go to hell, you have the resources there to get out of debtor's prison.

I wouldn't run up debt right now, because it's not clear what parts of the nation/world will be worth more, and what parts, not. Take, for example, Detroit. Someone who took out a 30-year mortgage on a property within Detroit, probably didn't benefit from the housing boom.

Californians haven't been seriously burned. Yet. It's coming - the 20,000 migrants that came in the last three weeks, are the tip of the iceberg.

I'm in an area in the middle of the Zoom Boom. Fleeing Lost Angelinos, coming here to enjoy safe streets while telecommuting. How long will THAT last? Once upon a time, Colorado was a safe, laid-back area, with low taxes and small government. Then the movement began, and prices exploded. Once Denver's driven to California chaos, people are not likely to pay high prices for the land.

Will the new nationwide trend, of housing stock concentrating in fewer and fewer hands, help or hurt prices? I don't know. Can prices go up, even in inflated fiat-dollars, if the economy is reduced to subsistence?

So, I'd say, if you got a good interest rate...ride it out. Ramsey is not wrong, as far as a stable economy. We are anything but.

 

[vichris]

No debt no worries.

Is there a way to like this more?

I'm consider taking on RE debt. I can't imagine the dollar holding value long term. This is not to flip, but to live in.

Silver, do you mind me asking where you are located? The last frontier says Alaska,...... but "Adobe" and "El Paso" say something else. And I agree with you, tangible things are the way to go in this environment.

We are completely debt free and live in a low property tax state/county. I'm retired, but my wife has a few years left until she can retire. We've got a nice mountain cabin that I share with 2 siblings that is also free and clear. I/we are looking to sell out to my siblings and get our own place. We've been actively looking for a nice bug out kind of property as a second home. We've found a really nice place that we would be paying cash for, or the owner has offered to carry part of the note, maybe a 1/3 or 1/4 of the total. This is in a rural kind of area where any "officials" better think twice about fucking around in any way, shape, or form. I'm damn close to pulling my fiat savings to finance our rural property. We've got to hang on to our home in town until my wife can retire or possibly just retire early.

 

[Lancers32]

So then it would make sense to borrow money to buy hard assets (mortgage to buy a house), and eventually pay the loan off with devalued currency while holding the underlying appreciating asset.

That only works if you have an income to service the debt and while common sense dictates hard assets will increase you never know for sure.

 

[the_shootist]

What I would do, if in that situation: Hold your debt, but have it covered - in inflation-proof money, as best you can. I would say, gold. If you're in bitcoin, you might want to sell enough to cover your debt - and store it in a more-secure way. So that when things go to hell, you have the resources there to get out of debtor's prison.

That's pretty much how I'm playing it. Staying nimble and agile in a highly unstable environment makes the most sense to me

 

[gringott]

I know not what course others may take, but as for me, give me a debt free life, or give me death.

 

[Silver]

Is there a way to like this more?



Silver, do you mind me asking where you are located? The last frontier says Alaska,...... but "Adobe" and "El Paso" say something else. And I agree with you, tangible things are the way to go in this environment.

We are completely debt free and live in a low property tax state/county. I'm retired, but my wife has a few years left until she can retire. We've got a nice mountain cabin that I share with 2 siblings that is also free and clear. I/we are looking to sell out to my siblings and get our own place. We've been actively looking for a nice bug out kind of property as a second home. We've found a really nice place that we would be paying cash for, or the owner has offered to carry part of the note, maybe a 1/3 or 1/4 of the total. This is in a rural kind of area where any "officials" better think twice about fucking around in any way, shape, or form. I'm damn close to pulling my fiat savings to finance our rural property. We've got to hang on to our home in town until my wife can retire or possibly just retire early.

Far West Texas, Big Bend.

 

[Casey Jones]

I know not what course others may take, but as for me, give me a debt free life, or give me death.

Makes things simple, that's for sure. Taxes, monthly budgets and personal choices (go south this winter, yea or nay?) and worries when there's surprises. I know where I stand and addressing each potential outcome (will they re-copulate the VA? What will I DO when my assigned physician is a Nigerian idiot?) and can address each.

On the surface, I'm in extreme vulnerability. I'm retired on a Railroad Retirement payment. I'm in the VA medical program. I didn't even HAVE eligibility for the VA until they extended it for Southwest Asia/Persian Gulf veterans...thirty years ago, universal acceptance into the VA was taken away. I don't know when the law was changed; but it was, and quietly; and it can be changed back just as quietly.

And as well, Railroad Retirement can be taken away, stroke-of-the-pen style. Or even, just nothing done with it - as we're dealing with true inflation-caused-price rises of over ten percent a year (actual, grocery-basket increases, not the government's lies).

But I have no debt and that moderate stack. It doesn't mean I'm set-for-life. It means I can last close to ten years, figuring out WTF, and my options, including self-exiting.

Depressing? Maybe. But there will not be any overnight surprises. Plenty of time to make a move, or adjust aims down.

 

[Treasure Searcher]

This happened over 100 years ago, but it bears repeating in our day and age.

In the early 1900's, the community that where my maternal grandmother was from, was a farming community. As with any farming community, there was the ups and downs in the farm commodities. There were a few good years of bumper crops and high grain prices. If you remember history, there were banking crises very frequent at that time. People did not trust the banks. Since farmers had alot of cash from the good crops, they bought physical gold. Then the bad years came. Bad crops (drought, hail, etc.) and low grain prices. The bills still had to be paid. Property taxes, shoes for the children, etc.. That is when the farmers sold off their physical gold to make ends meet.

Same goes for today. Everyone should own physical gold for insurance. When bad times arrive, gold will keep its value, versus our over printed fiat.

Only you can determine how much physical gold you should have. When the bad years come, your physical gold can keep the wolves away from the front door.