Hyperinflation starting? What's happening in your area? Post your ground reports.

[Matt33]

What is everyone investing in now as a hedge to inflation especially those of us that have cash parked on the side?

I'm going to invest in apartment syndications but also looking into ATM funds that pay out over 7 years and connected with a guy in Austin investing in land entitlements that are paying close to 30%.

What are you guys investing in?

Gold

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[biggeemac]

Gold

Debt....real estate and my truck, tools, business stuff. My dad bought a mini excavator.

 

[Speed112]

Productive assets are the best investment. What you produce will be just as valuable relative to other products regardless of the arbitrary value of central currency.

This stuff has been starting to bother me...

Europe is not immune.

I have various rules for my groceries and I'm generally quite aware of the price of things. For example, I have an upper bound for fruit to make sure I'm getting in-season fruit, with one exception for up to 50% higher price if something catches my eye.

This year I've had to raise the upper bound twice and now every staple fruit I used to enjoy is outside my last year's allowed range. The super in-season ones (like watermelons) are still at the same prices as forever, but 80% of fresh produce is just "expensive."

When it comes to everything else: meat, processed stuff, electricity, even garbage collection... they've all gone up significantly. I'd say around 20% on average across the board compared to last year, with some upward of 100%.

General living expenses for your average person are probably up over 50% here since before the pandemic. And I doubt it's over, given that the money supply pretty much doubled.

 

[WJK]

What is everyone investing in now as a hedge to inflation especially those of us that have cash parked on the side?

I'm going to invest in apartment syndications but also looking into ATM funds that pay out over 7 years and connected with a guy in Austin investing in land entitlements that are paying close to 30%.

What are you guys investing in?

Just finished a rehab of one of my mobile homes and rented it. Investing in privately held trust deeds. Bought another one last week.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[AceVentures]

As part of the new home sales report released on August 24, the Census Bureau reported the number of homes sold by price and the average and median prices.

Oh look - no new homes under 200k anymore...



The average and median house prices mostly moved sideways since 2017 due to home builders offering more lower priced homes. Prices picked up during the pandemic, and really picked up recently.

The average price in July 2021 was a record $446,000, up 18% year-over-year. The median price was a record $390,500, up 18% year-over-year.

 

[Awaken Study]

As part of the new home sales report released on August 24, the Census Bureau reported the number of homes sold by price and the average and median prices.

Oh look - no new homes under 200k anymore...

View attachment 39622

The average and median house prices mostly moved sideways since 2017 due to home builders offering more lower priced homes. Prices picked up during the pandemic, and really picked up recently.

The average price in July 2021 was a record $446,000, up 18% year-over-year. The median price was a record $390,500, up 18% year-over-year.

After seeing your post I did some calculations based on the historical data on this website. It goes back as far as 1953 and adjusts for inflation.

By the time I'm eligible for retirement in 40 years, only 50% of homes will be less than $2,485,231

In 20 years, the medium home will be $1,037,212.

Adjusted for inflation it won't be so bad but still these numbers are crazy. This is making me realize I need a ton more money than I think.

In 20 years I'll need to make $190,902/yr and 40 years $457,415/yr just to afford the average home.

Real Estate really is the best way to survive over time.

 

[Kak]

By the time I'm eligible for retirement in 40 years

Agree with pretty much all of what you’re saying here, but…

Who or what determines your “eligibility” for retirement?

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Awaken Study]

Agree with pretty much all of what you’re saying here, but…

Who or what determines your “eligibility” for retirement?

I'm 27 and retirement is 67 in America. Not going to lie, it's been tempting to give up and stick with the slowlane but not after seeing these numbers .

Using calculators/historical data is helping me see escaping the rat race is literally life or death. Receiving the maximum social security($3,148/mo) won't even afford rent in 40 years.

It's making a 10 year exit strategy look a lot more appealing. There's no way I'm working 40 more years just to be living paycheck to paycheck.

 

[PizzaOnTheRoof]

Anyone else (who hasn't seen great success yet) feel a bit black pilled right now?

Assets get more expensive and my dollars keep getting weaker.

Desperation grows.

Feeling like I'll never get out of this rut and finally see some success.

 

[FiftySeven]

and retirement is 67 in America

Forgot to factor in "Retireflation".

Retirement age may be 75+ for current 27 YOs

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[DreSon]

Forgot to factor in "Retireflation".

Retirement age may be 75+ for current 27 YOs

Scary thought. Never considered that. Honestly starting to feel like the retirement age is going to be never at this rate! Lol unless of course adopting fastlane strategies, which is why we're all here!

Edit: Am 29

 

[Awaken Study]

Anyone else (who hasn't seen great success yet) feel a bit black pilled right now?

Assets get more expensive and my dollars keep getting weaker.

Desperation grows.

Feeling like I'll never get out of this rut and finally see some success.

It's discouraging but it actually made me sit down and reread "The Escape Number Strategy" chapter in TGRRE . I glossed over it the first time. I thought I could get away with an estimate of my escape number but now I know I need to sit down and actually calculate it.

Knowing 10 years from now things will be at least 20% more expensive will require my escape number to increase by 20% or lifestyle to decrease by 20%. It's empowering to be planning for it now rather than being shocked by it later down the road.

Success will only come by making a plan and sticking with it for 10 years. I see this now. Everything is designed to keep us in slavery and breaking free will require a lot of action and planning.

Forgot to factor in "Retireflation".

Retirement age may be 75+ for current 27 YOs

Yeah the system was only designed for people to collect for 10 years and with the average life expectancy increasing to 85 by 2060 actual retirement age will increase. Either that or collect 80% of what we would be owed.

 

[Walter Hay]

I see a lot of manufacturing coming back to the USA. But, it's going to be manned by a lot of robotics rather than human hands. It will take time and money to get it all set-up. And a lot of the manufacturing won't take up as much space as we're used to seeing. I think it's a great opportunity for us as a nation. Why do I see this? China has lost its luster and I think that business owners are going to be a lot more head shy about the Asian countries. And Mexico has a cartel problem that hurts their safety factor. But, maybe I'm wrong. We will see.

It's important to view the wider picture. I posted about offshoring starting to be reversed as far back as October 2014.

In the interim, many US companies have sold the family jewels (their brand name and logo) to Chinese manufacturers. That is not offshoring it is betrayal of their loyal customers, who were unknowingly buying lower quality Chinese made products bearing their trusted brand.

I still grumble about buying sub standard Stanley products MADE IN CHINA. GRRRRR.

At the same time, reshoring has gathered pace, and I am now pleased to see big US companies returning production to the USA. The Covid pandemic led to a realization by the public and corporations that over-reliance on supplies from distant countries was a bad idea.

Supply chains were too stretched, unreliable, and delivery times too slow when essential life saving items took a month or more to arrive. Even then those US companies that had greatly boosted profits by offshoring could not meet their regular customers' needs.

A sense of urgency has now been evident in some board rooms and steps taken to right what was (with hindsight perhaps) a serious wrong. More and more US companies are opening factories again. Foreign investors are also putting their money into US production facilities.

Many jobs have been opened up, exceeding 2019 estimates by 50% to around 160,000 .
A great example of how successful reshoring has been is Craftsman, which is now owned by Stanley Black & Decker. They have manufacturing plants in 14 states, with two more in the pipeline.

So all is not doom and gloom, but I expect it will be a long process to get the economy back to a reasonable position.

Walter

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[hellolin]

Well, we are definitely living in strange times. People are just not motivated anymore. No one is interested in capitalism or learning about economics. Just people becoming more interested in socialism and admiring lousy politicians.

Fixed it for ya.

 

[Kak]

I'm 27 and retirement is 67 in America. Not going to lie, it's been tempting to give up and stick with the slowlane but not after seeing these numbers .

Using calculators/historical data is helping me see escaping the rat race is literally life or death. Receiving the maximum social security($3,148/mo) won't even afford rent in 40 years.

It's making a 10 year exit strategy look a lot more appealing. There's no way I'm working 40 more years just to be living paycheck to paycheck.

Dude, 40 years from now, I’d bet harder that America, as we know it today, doesn’t even exist.

I’d also bet that $3,148 is worth less than a toothbrush.

Why would you count on social security for anything? If I am wrong, and it is still somehow valuable, I’ll use it to take out a billboard that makes fun of how stupid the government is with something fresh each month.

 

[Antifragile]

Dude, 40 years from now, I’d bet harder that America, as we know it today, doesn’t even exist.

I’d also bet that $3,148 is worth less than a toothbrush.

Why would you count on social security for anything? If I am wrong, and it is still somehow valuable, I’ll use it to take out a billboard that makes fun of how stupid the government is with something fresh each month.

You must be high @Kak - your social security cheque won’t cover the billboard cost.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[MTF]

A German woman burning tons of legal paper money during the hyperinflation of German currency in the 1920s. The paper money was cheaper than wood or coal, and families used it to fuel their fires during the crisis.



A woman uses banknotes to light her stove. 1923.



“The King of Inflation”, a man clad in worthless coins. 1923.



Currency became worthless with kids using it like Lego bricks.

I know it's easy to look at it today and think that it's just some archaic funny currency but these people, a few years prior to these pictures, looked at this piece of paper the same way as we do today at US dollars, euros, etc. It's mind-blowing.

All from Rare Historical Photos

 

[MTF]

Anyone else (who hasn't seen great success yet) feel a bit black pilled right now?

Assets get more expensive and my dollars keep getting weaker.

Desperation grows.

Feeling like I'll never get out of this rut and finally see some success.

This actually started drawing me toward crypto that is one big f*** you toward the governments that are responsible for this. Now if only I could understand the black magic that crypto is...

 

[Antifragile]

This actually started drawing me toward crypto that is one big f*** you toward the governments that are responsible for this. Now if only I could understand the black magic that crypto is...

Just buy some. I bought it, still don't get it but sounds legit. And @AceVentures is like a guru on this subject.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[AceVentures]

This actually started drawing me toward crypto that is one big f*** you toward the governments that are responsible for this. Now if only I could understand the black magic that crypto is...

Our only solution is to rebuild a fairer economy - built by sound principles, governed by systems that remove human arbiters and decision makers. Our ever evolving concept of democracy now only lives fairly within systems of governance that are transparent and accessible to all.

I wrote this on May 1st in the main crypto thread. But it's worth re-reading...

Real estate. Precious metals. Stocks. You know how much they've gone up over the past, idk, say 20 years?

If you denominate their price by the ballooning fed balance sheet - you'll notice they've actually not done shit. Since the crash in 2008 and the massive growth in debt - every one of these asset classes you look at has barely held it's own. This intuitively makes sense - wages were tarnished and many people never went back to work. Distrust has been growing and all economic/social/political aspects of our lives have been growing more tense.

Fastforward to 2020+ and the balance sheet has been on a straight vertical line up. No end in sight. Printing trillions. Everyone around the world. The USD doesn't seem to be going down? How come? Well everyone is printing. CPI seems to be fine and inflation is not a real problem... Where does all that money go? Debasement. It hides under higher asset prices. If scarce/valuable assets are a means to attach our savings to - well people's ability to create meaningful savings is becoming exponentially more expensive as our leaders take our future wealth from us.

CPI doesn't change much, your toilet paper might not cost you much more, but good luck buying a house now. Good luck trying to create "wealth" over the long haul. Good luck protecting your wealth. Good luck not getting rugged by the country your money is tied to.

Crypto belongs to the only asset class that has outperformed every other asset class, while the others barely held their ground since 2008. Why they're now booming is because they were built for this type of thing. They're the ultimate antidote for the problems we're facing. Don't look at the prices, go read the whitepapers first and then go learn fiscal and monetary policy, learn the history of money and our relationship with it, the history of economy tied to governance. It all ties beautifully.

Guys wake up - the printing is not going to stop. There is no stopping it at this point. The central bankers have spoken - they will do everything in their power to keep this from going down, and their only remaining option at this point is to create more dollars. If you are holding on to this belief that the ballooning debt across the world is somehow going to be financed you're f*cking delusional man. Wake up, the new world, the next technological revolution is happening today and it's infrastructure needs money. The trillions being printed will create this new system, because there is no way in hell the previous system can be bailed out at this point. I know it. The governments know it. Even you know it.

The future belongs to those who create it. It is not being created by the farts that have vaults of shiny metal. In fact, in this new world, the creators dislike the vaults of shiny gold AND the farts that sit on top of them. Their imagination and their ability to collaborate with one another allows them to create new forms of shared belief. New economies. These economies already exist but people don't f*cking understand because they think it's just "dumb kids addicted to their phones" and refuse to appreciate what's actually happening across these digital ecosystems.

How many more trillions need to be printed before you realize there's no end to this? The train has left the station. You're refusing to see that crypto is the innovation the world needs most today. Every talent, every industry, every person, every conversation, is converging to crypto. If you like "technology" and you appreciate "Uber" and "self-driving cars" - how do you not see that crypto is a new form of technology that is eating up every other technology?

Why you think this is a scam is in my opinion because you're actually not as unscripted as you think you are. You've accepted the narrative as you've heard it but have not begun to think for yourself. This new truth would challenge the previous truth you knew, and challenging it is exhausting and frightening. I understand. But if you have not asked enough questions - in your ignorance you will miss the most obvious and life-changing opportunity of our times.

 

[lludwig]

What is everyone investing in now as a hedge to inflation especially those of us that have cash parked on the side?

I'm going to invest in apartment syndications but also looking into ATM funds that pay out over 7 years and connected with a guy in Austin investing in land entitlements that are paying close to 30%.

What are you guys investing in?

I just bought another blog. I talk about the issues of what other investment options are currently out there.

Buying A Blog – My Investment Strategy & Improvement Plans

Since I sold Investor Junkie, I have always wanted to buy another blog. I document my journey and the improvements I make on my new purchase.

larryludwig.com

 

[socaldude]

The future belongs to those who create it. It is not being created by the farts that have vaults of shiny metal. In fact, in this new world, the creators dislike the vaults of shiny gold AND the farts that sit on top of them

I’ve put some thought into this lately. People talk about gold being the only “real money” and while it’s partially true. Most gold is owned by big institutions and entities.

Why do they refuse to audit the Federal Reserve and Fort Knox? Every time they introduced a bill to do it, the bankers and politicians defeat it. That tells me there is no gold at Fort Knox and the Fed has not been honest. They probably all sold the gold to each other for bottom dollar. Just like James Bond Goldfinger 1964.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Kak]

I’ve put some thought into this lately. People talk about gold being the only “real money” and while it’s partially true. Most gold is owned by big institutions and entities.

Why do they refuse to audit the Federal Reserve and Fort Knox? Every time they introduced a bill to do it, the bankers and politicians defeat it. That tells me there is no gold at Fort Knox and the Fed has not been honest. They probably all sold the gold to each other for bottom dollar. Just like James Bond Goldfinger 1964.

Fort Knox is empty.

Unless they filled it with paper. In which case, it’s empty.

 

[MJ DeMarco]

Fort Knox is empty.

Unless they filled it with paper. In which case, it’s empty.

I'd bet the budget for Fort Knox management funds black-ops.

 

[WillHurtDontCare]

People talk about gold being the only “real money” and while it’s partially true.

There is no "real money". Watch kids play with tools and you'll see how fleeting the value attached to any particular thing is. Though some things will constantly resurface as stores of value, like gold, land or beautiful women.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Guest-5ty5s4]

There is no "real money". Watch kids play with tools and you'll see how fleeting the value attached to any particular thing is. Though some things will constantly resurface as stores of value, like gold, land or beautiful women.

“Real money” is stuff.

Even if you subscribe to the “it’s all relative” mindset, you gotta realize that “stuff” is money and money is “stuff.”

Goods, products, services, even just promises...have value...can be traded...are worth something.

We just try to find one thing to trade to smooth out the process so a model is not trying to buy Instagram followers by sending 12 cows and 4,789 pinto beans to a guy in India.

 

[Antifragile]

Note to self: “stop buying Instagram followers by sending 12 cows and 4,789 pinto beans to a guy in India.”, there has to be a better way…

 

[DoingDeals]

Buy your Christmas presents right now.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Guest-5ty5s4]

Note to self: “stop buying Instagram followers by sending 12 cows and 4,789 pinto beans to a guy in India.”, there has to be a better way…

I didn’t know you were an Instagram model??

pics?

 

[MJ DeMarco]

“Real money” is stuff.

That was the rationale for place I just bought which was larger and more expensive than my original plans.

For the foreseeable future (3-5 years) I'd rather have money in land, bricks, drywall, and 3 refrigerators over a bank which is probably under capitalized to the hilt.