(Alt-Market)—America is in the midst of a stagflationary crisis; there’s no way around it. It doesn’t matter how much oil Joe Biden dumps on the market from the Strategic Reserves. It doesn’t matter how many jobs he is able to temporarily buy with the $8 trillion-plus covid stimulus package. It doesn’t matter how many times the mainstream media claims we are “in a recovery.” The fact is, the majority of Americans are being priced out of integral markets and the longer this goes on the deeper the hole is dug and the harder it will be for people to climb out.
That’s how most economic disasters work; the populace is not dropped into the pit automatically, the pit grows up around them over time. We have seen worse conditions in the US in the past, including the Great Depression and the stagflation crisis of the 1970s. The people who think conditions are bad now haven’t seen anything yet (interest rates eventually climbed to 20% in the early 1980s, crushing borrowers). That said, there is a growing potential for today’s crisis to BECOME the biggest financial crisis in our nation’s history given a little more time.
Part of this ongoing problem is the heavy inflation in housing prices, and make no mistake, this IS one of the biggest threats facing middle-class America right now, which in turn affects people under the poverty line. Rental prices on the average American home have climbed to $2047 per month – The average in 2019 was $1465. That’s a 30% increase in housing costs in the span of four years.
For apartments, the average cost today is $1372 per month, compared to $1078 per month in 2019. The rent-to-income ratio in the US is now estimated to be 40%; meaning, most Americans are paying up to 40% of their income just for housing. Anything over 30% is considered overburdened.
The average cost of a home was $313,000 in 2019. In 2023 that average rose to $431,000, far outside the annual income of the majority of Americans and pricing out over 67% of the population. As mortgage rates skyrocket and middle-class Americans are pushed out of home ownership, they then have to move into the rental market where the supply steadily declines and prices rise due to demand.
The problem is not just higher prices, this is merely a symptom. There’s also falling availability across the nation.
Rentals in many areas (outside of crime ridden metro neighborhoods) are awash in applications, so much so that a new scam has developed among some property owners requiring fees just to apply. These “screening fees” can climb into the hundreds of dollars for each applicant, and in most cases the applicant never sees that money again, even if they don’t get the rental. This is not to say there are no homes available anywhere; rather, availability is falling at a greater pace and new housing can’t keep up.
There are claims that this trend will soon reverse and that builders are set to flood the US with new properties, but I seriously doubt it given current conditions. There are multiple factors at play keeping housing in stagflationary limbo and one or more of them need to change dramatically.
So what can be done about this? I’ll rephrase the question – What solutions can be pursued that will have quick results rather than taking a decade or more with minimal benefits? The truth is, the solutions are simple, but they require actions that some people would consider “extreme” or contrary to their political aims.
Certain interests would do everything in their power to prevent such solutions from being achieved and that’s the ultimate obstacle. It’s not only that there are numerous instabilities within the economy, the greatest obstacles are the political groups and corporate cabals that will try to stop basic reforms from happening to alleviate the crisis.
These solutions would have to be enforced at the state level, because there’s NO WAY under the current federal regime that such measures would aver be allowed nationally. Step one is the most important and will probably get the most angry opposition…
Step 1: Deport All Non-Citizens In The US
Gen Z activists often argue that they have inherited the most unfair financial conditions in history, including exploding home costs. This is simply not true, of course. The Depression era and the stagflation disaster of the 1970s were far worse than conditions today. Can the current situation become a calamity? Oh yes. But Zennials are already panicking and we haven’t even gotten to the hard part yet.
While younger Americans blame “boomers” for their fate, it should be noted that Gen Z often supports policies which are destroying their own future prospects. For example, a majority of Gen Z defends open border policies and amnesty for illegal immigrants. Yet, it is this trend that is helping to drive up the very housing costs younger Americans complain about. If they want affordable housing, they will have to let go of some of their more childish fantasies about America as a “multicultural melting pot” open to everyone.
No refugees. No Asylum. No three year wait on court proceedings while they live off the system and take up housing space. If they didn’t migrate here through the proper legal channels they should be removed from the country and immediately shipped back to their nation of origin.
If you want to know why rental housing in particular has skyrocketed in the past couple years, it’s not only because of inflation in the money supply. There have been more than 2.8 million illegal migrant encounters at the southern US border in 2023 alone. At least 1.5 million of those migrants have been allowed to enter the US by the Biden Administration under asylum rules, and the rate of illegal crossings is only increasing with each passing year.
There is an estimated 16.8 million illegal immigrants residing in the US as of 2023, though the real numbers could be much higher. To put this in perspective, only 3 million Gen Z Americans have turned 18 since the year 2000 with the possibility of needing housing in the near future. Removing illegal immigrants (who are not supposed to be here in the first place) would greatly ease the housing market and leave ample excess rentals for young Americans. The increased supply would quickly bring down rent prices and perhaps even home purchase prices.
The most common argument against this kind of measure would be the assertion that America “needs” migrants to help with labor shortages. I would point out that labor shortages are a fleeting aspect of the trillions in covid helicopter money dumped into the system in the span of a single year. And, as the effects of this fiat money fizzle, the jobs market will plummet.
America is taking on a population explosion that it cannot compensate for while acting as a steam valve for foreign governments to pawn off their problems. You want to know why housing prices are exploding? In part because of foreigners sapping the supply.
Fixing the problem at the state level would require stepping on the toes of the federal government and enacting immigration enforcement within state borders. Greg Abbot, the governor of Texas, is partially doing this by busing migrants out of Texas to Democrat sanctuary cities. The crisis will not be fully averted until illegal migrants are bused out of the US entirely, but booting them out of red states would help and blue states would probably be forced to follow suit as they suffer under their own foolish sanctuary policies.
Step 2: Stop Foreign Purchases Of US Properties And Land
This is an action that some state governments are already pursuing. More so in the case of preventing the Chinese government and their corporate partners from buying up property, but this should apply to ALL foreign buyers. Roughly 40 million acres of US agricultural land is owned by foreign companies, and foreign buyers purchased over 84,900 homes in the US just in the past year. High interest rates are slowing these purchases, but not enough.
States can and should make it illegal for foreign interests to buy property within their borders. I would suggest a moratorium passed on foreign buyers for at least a decade, if not longer. I don’t think many in the public realize how open our property markets are to foreigners. In times of prosperity this might not matter to some people, but in times of inflationary crisis the rules need to be changed to favor American citizens first.
Step 3: Moratorium On Corporate Home Buying
According to data compiled by PEW Trust almost one quarter of all homes in the US in 2022 were owned by corporations, many of them disguising themselves as smaller investment groups. That’s 25% of the US housing market controlled by a handful of corporations who can leverage that housing supply into much higher rents for the entire nation.
Coffee the Christian way: Promised Grounds
Keep in mind, this is similar to what happened during the Great Depression when major banks bought up distressed mortgages on the cheap as owners struggled to stay above water. In the end banks were snatching up homes for pennies on the dollar.
It’s unlikely that the current federal government would ever place restrictions on these companies, but state governments might, given the level of homelessness that is about to hit their economies in the next few years.
Again, if the primary danger in US housing is lack of supply driving up prices, then we must create more supply to make housing affordable again. We can’t compel the market to build more houses for cheaper, and we can’t compel home builders to take a loss. But, what we can do is free up the existing supply and take it out of the hands of people who are not Americans and restrict those groups who are attempting to corner the market.
The Federal Reserve’s plan (at least the plan they openly admit to) is completely different – They are seeking to crash the economy and cause untold financial harm in order to drive inflation back down. Sure, prices will fall when the majority of people are broke, but that’s not a solution. Who’s going to be in a position to buy after a historic bubble implosion (other than the banks)? As the saying goes, in this case the treatment is deadlier than the disease.
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
