China Debt Jubilee Underway, US Next? - David Stryzewski #5559
Summary: A storm is brewing as people stop paying their mortgages, realizing that the system is rigged and things are bound to change. Here to discuss this is David Stryzewski, and he unpacks some of the inflationary phenomena taking place as well as how to strategize in these tumultuous times. You won’t want to miss David’s useful tips, so be sure to tune in to this episode. Highlights: -A storm is brewing—millions of people have realized that the system is rigged, and have stopped paying their mortgages as a result -This phenomenon is happening in China -If 20-30 million stop paying their mortgage, the legal system grinds to a halt -We have inflation and mass defaults, which go hand in hand -We’re seeing inflation, record high prices, and supply chain issues -We’re probably going to see different dimensions of these issues -The new CPI came out at 9.1% -If we raise rates too high, we kill business activity. If we don’t raise them enough, we kill the dollar -We must analyze the velocity of the situation—or what the actual cost to the consumer is -The Fed is going to be more aggressive, and rates need to go up about another 1.5% by September -The destruction of debt leads to the destruction of money -Everybody’s debt is somebody else’s asset -If debt doesn’t get paid, banks will go down the toilet and have to be re-capitalized again -This time’s housing bubble is different -They may want to do debt consolidation, but the existing laws could trigger a potentially catastrophic event -You need to make sure you have a plan and mitigate risk; budget is something that you CAN control -Have cash ready to deploy -Invest in yourself. If you want to learn how to do your trade more effectively, take the time to acquire those skills Useful Links: Financial Survival Network Sound Planning Group
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