- I recently had dinner at an excellent Chinese restaurant.
An attractive young lady came in and sat down in the chair next to mine
and was immediately joined by a man who looked to be in his mid-forties.
He was trying to impress her with his talk about his Real Estate Brokerage
Business and all the short term profits he had made buying and selling
Real Estate.
-
- He crowed that he had bought a house for $200,000 and,
after holding it a relatively short time, sold it for $600,000. He said
he did not want to go to Law School, because, although he "knew"
he could do it (Practice Law) and although practicing law was a family
tradition, he could make so much more with his brokerage business.
-
- He opined that real estate attorneys received, on average,
only $750 per title search (his figures), and that was so much less that
he was making.
-
- He said real estate business and finance were something
he "really knew", and that he had just bought a 5,500 square
foot house for a mere $400,000 in North Carolina that in three years or
less would have to be worth well over a million, at least.
-
- I recalled that when, in 2000, I correctly projected
that the Stock Market was topping out, I had heard similar conversations
about stocks. When a Bull Market Cycle is in the "Blow-Off" or
"Exhaustion" Stage, you will hear these kinds of conversations
commonly.
-
- When Jeff Rense interviewed me on September 8th, 2005,
I put the coming REAL ESTATE CRASH within the context of the fact that
we are now in the worst DEBT BUBBLE in U.S. history.
-
- Perhaps I could have interrupted the broker's conversation
with the young lady and asked him if, in fact, he "really did know"
the Real Estate Business, was he aware of how Real Estate Debt increases
to the breaking point through the Debt Money System? Remember, in 1999
and 2000, when many financial advisers were saying that people who bought
bonds or CDs were "missing the boat because they could all retire
early with double digit returns from Mutual Funds?
-
- I never did explain to the Real Estate Broker that in
The Federal Reserve Debt Money System, Banks are allowed to CREATE MONEY!
- they don't just lend money that already exists. They create money from
thin air!
-
- Through a process called the Multiplier, they are able
to lend money that literally did not exist before they loaned it. The Multiplier
mechanics are explained in any basic Economics Text Book. This is exactly
what, over several decades, creates the DEBT BUBBLE like we have now.
-
- What is NEVER explained in college Economics textbooks
is this: When banks create money out of nothing in the form of loans, they
create only the Principal.
-
- HOWEVER, THEY NEVER CREATE THE INTEREST TO PAY BACK ON
THE PRINCIPAL!
-
- The first DEBT BUBBLE in the last 100 years was the 1920s
to 1930s Boom and Bust cycle.
-
- The second DEBT BUBBLE is today. Right now.
-
- Under the DEBT MONEY SYSTEM, when the money supply is
expanded by "X", the debt is simultaneously expanded by ("X"
plus "Y")...where "Y" is the INTEREST charged on loans.
Because ("X" plus "Y") is greater than "X",
THE DEBT CAN NEVER BE PAID. This brings us to the Old International Bankers,
Trick wherein the Money Supply is expanded greatly in a short period of
time. This produces a temporary illusion of prosperity - just like in the
"Roaring 20s" when Stocks and Real Estate soared.
-
- Now the trap is set because "X" plus "Y"
is greater than "X", so within the money expansion phase there
is an inherent DEFLATIONARY TICKING TIME BOMB.
-
- All the International Bankers have to do once the trap
is set is to call the loans in, and THE TRAP SPRINGS SHUT.
-
- That,s why the Roaring 20s were followed by the GREAT
DEPRESSION. Loans were called in and THE MONEY SUPPLY WAS CONTRACTED VIOLENTLY
and STOCKS and REAL ESTATE CRASHED.
-
- We have already had the money expansion phase in DEBT
BUBBLE #2. That's why we are, I believe, on the verge of what could be
the BIGGEST REAL ESTATE CRASH IN HISTORY.
-
- Perhaps I should have said something to the rather arrogant
Real Estate Broker, but I chose to enjoy my dinner in silence.
-
- BON APPETIT...
-
- George Whitehurst Berry
- http://www.thegoldenshield.org/
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