Is what we're seeing in the economy "demand destruction" or something more? The short answer is that it's something more and quite unique as far as I can see. What we're beginning to live is "demand/supply destruction."
We've seen demand destruction in the United States before and relatively recently, assuming you consider the 1970s recent.
As Glenn Beck reminded us recently, we saw demand destruction during the oil embargo of the early '70s. He spoke of the huge cars produced by the big three American companies – Lincolns, Cadillacs, Buicks, etc. Then the oil embargo hit, driving gas prices out of sight, forcing Americans to find smaller vehicles that got more that 5 to 8 miles per gallon. The demand for big American cruisers was all but destroyed.So, energy demand and supply is being destroyed domestically. What about real estate?
Well, in February, to help curb inflation, Goldman Sachs called for seven interest rate hikes in 2022 alone and up to 12 successive hikes total. This will crush the real state market, both residential and commercial, with some predicting retail rates to at least double or more.
It will make it much more difficult for the average Joe and Jolene to purchase a home or business property. Then what?
Well, there's a plan for that, and it's already been in the works for a while.
Recall the mantra of the World Economic Forum (WEF) and their Great Reset plan – "you'll own nothing and you'll be happy."
But if Joe and Jolene can't afford it, who can? Enter BlackRock and Vanguard, who have been and will continue to buy up real estate like there's no tomorrow. They'll end up owning it, and Joe and Jolene can rent from them. What a deal!
But there's a caveat. If Joe and Jolene's personal ESG score isn't acceptable, they'll not only own nothing, but the powers that be won't let them rent either.
So inflation will soon be out of control – food, fuel, housing, etc. Your dollars with be worth less and less. What then?
The Federal Reserve to the rescue! This "crisis" creates the perfect opportunity to introduce digital currency, the fedcoin.
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