Monetary Policy: Leveraging from an irreconcilable economic fact

Oh and by the way, this number is going to continue head north because the big 22 central banks have only just started their third phase of QE. More printing to come.

But… at any rate, this is pretty messed up – don’t you think?

The US dollar’s days as the world’s reserve currency are limited.

Russia and India just did a major arms deal using each others’ national currencies bypassing the USD altogether.

China and Russia have been doing similar deals for a long time and so is Iran.

Any clues as to why the US’s foreign policy rhetoric is so starkly against Iran, Russia, China and also (in recent days) India? Perhaps the fact that they are all circumventing the US dollar has something to do with it. What would I know about that… I’m just spitballing.

At the same time, those very nations are also stockpiling gold in their national vaults. Don’t take my word for it. Check it out yourself.

Now that we have that out of the way, lets continue to understand how all this has anything to do with you, the investor, the one looking to create wealth through property.

Once the dust settles, and you’ve reconciled with all this (in your head), you will find yourself asking the question – well what do I do with all this technical info?

Am I saying that you should ditch the property portfolio and start buying gold?

No. I’m not saying that at all. In fact, I’m not saying anything.
All I am trying to do is get you to think objectively about what’s happening in the broader economic arena and make some educated decisions about what decisions you ought to be making.

The property market will do well moving sideways for the next several years and dare I say, again, as my sole opinion not meant to influence anyone’s decisions, that the double digit capital gains are remnants of a past that is unlikely to ever repeat itself – perhaps in another generation.

Definitely not mine or yours.

Economies around the world are going to face more and more downward pressure as the younger, more educated, more connected and more nationalist by nature group end up having to fund the entitlements of an older generation that the social welfare programs are no longer able to sustain.

Look at any form of civil unrest that’s happening now. Be it Hong Kong, Italy, Greece, Brazil or even the US of A – the average age, the educational background, the gender variations – these are all pointing toward a younger millennial generation that’s already starting to see the cracks in the “SYSTEM”.

The answer?

Cashflow.

Cashflow is the King Supreme or maybe I should say “Queen supreme”, to keep things gender neutral and appease the politically correct that are ever so eager to poke holes in my statements just to feel superior and important. Eek.
Find a way to increase your cashflow and become more liquid.

Liquidity in times of economic turmoil is the greatest asset. It gives you the flexibility to respond with speed, agility and in your best interest without being dependent on a third party such as the bank and do so without compromise.
Self-reliance is an important aspect of sustainability through this economic storm that’s on the horizon.

Using the current equity in an asset and refinancing it to fund the expansion of your property portfolio carries risk beyond just the volatility in the market. Any sharp declines could force you to “top up” your borrowing to bring it down within the LVR range that will keep the lender happy. Trust me, its a “hit by a truck” scenario that you’d be better off avoiding altogether.

The time is right for you, Jane and Joe, to learn how to CREATE money without using your own capital or risking equity in something you already own or by taking on more debt than you already carry. It is time to understand how to use the current economic situation to your advantage and create quick, chunky cash from the market that you can use to further build your portfolio – be it property, precious metals, equities or anything else you fancy.

Use smart strategies to generate cash in the current climate that is absolutely ripe for the harvest using the tools of Property Options. Pump that cash into picking up discounted, troubled and distressed rental properties.

Watch rental demand outstrip ownership aspirations over the coming years (because during this period, the poor will get poorer, the middle class will fall further below their standard and only the rich will get richer) and just create that cashflow income for you starting NOW instead of waiting for when the proverbial truly hits the fan.

The point here is to use the market to create quick cash – where you use that cash is for you to decide.
So with that, I shall bring my rant to a close. Please post a comment below if you liked what I wrote above or even if you have a differing opinion – or don’t if you don’t feel like it.

Be SMART. Invest in your education.