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http://www.forbes.com/finance/2008/12/09/dollar-devaluation-gold-pf-ii-in_fb_1209soapbox_inl.html

I thought this was such an unbelievable article. The author suggests just dropping the value of the dollar by around 30% basically overnight.

"It can be done on a country-by-country basis, but a coordinated devaluation would work best. A devaluation of 30% would raise the dollar value of all assets by 43%. A $200,000 home with a $230,000 mortgage would become a $286,000 home with the same mortgage. Presto! The homeowner who was $30,000 upside-down now has $56,000 equity and a good reason to make his payments. Both the homeowner and the bank are immediately better-off."

So how am I supposed to pay for this new more expensive house with the devalued dollars from my paycheck?
 

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Like it or not, the almighty US $ will be devalued. With the amount of debt the US is adding, the only way to pay it off (reduce the balance sheet) will be to print money (Quantitative easing) which is already being done. More phony money will devalue the dollar and will cause inflation at some point.
 

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So how am I supposed to pay for this new more expensive house with the devalued dollars from my paycheck?
Exactly? Unless I get a 30% raise what changes? Beside the fact that milk is 12$ a half gallon.



Both the homeowner and the bank are immediately better-off."
How so?
 

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http://www.forbes.com/finance/2008/12/09/dollar-devaluation-gold-pf-ii-in_fb_1209soapbox_inl.html

I thought this was such an unbelievable article. The author suggests just dropping the value of the dollar by around 30% basically overnight.

"It can be done on a country-by-country basis, but a coordinated devaluation would work best. A devaluation of 30% would raise the dollar value of all assets by 43%. A $200,000 home with a $230,000 mortgage would become a $286,000 home with the same mortgage. Presto! The homeowner who was $30,000 upside-down now has $56,000 equity and a good reason to make his payments. Both the homeowner and the bank are immediately better-off."

So how am I supposed to pay for this new more expensive house with the devalued dollars from my paycheck?
Your not supposed to , Their going to take it anyway . This way when they get it back its instantly worth more than you paid for it . Nice little transfer of equity for the thiefs. They will just ask the good ole Goverment to write off the loan and then they can leverage it again for more than its currenly worth. Viscious Cirlce HUH?????
 

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The government is printing money like hotcakes and devaluing it already.
One theory is that our money has to have it's value lowered in order to put us on a more equal ground with the peso. When the exchange rate hits close to 1 for 1, they can hit us with the Amero we keep hearing about.
 

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This is also a way to raise your property taxes. Your house is worth more so they charge you more based on the new assessment.

This doesn't take into account the regular increase in assessed value that occurs every other year on your property.

Let's say $17.00 per thousand of assesed value.

A 250k house x $17.00 = $4250.00.

A 50k increase on a 250k house would equal 300k x $17.00 = $5100.00

A $850.00 increase on your property tax bill thanks to some accounting tricks.

Nice plan, with the dollar devalued you'll have to pay extra for the same house with no improvments.
 

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I have thought about this tactic before, but the only glitch right now that is keeping them from doing that are salaries.

No one can afford the home as they can not right now because salaries have not gone up 30%. That is why we had the bubble burst so this concept holds no water for me.

The thing about the bank not wanting you to pay holds no water either as that is how they make money. Can you say "interest % % %" over 30 years , of which is almost all interest for the first few years of the mortgage.
 

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The fact is that income hasn't kept up with inflation at all. The statistics are totally bogus when food and fuel aren't even included in them, and housing stats are "adjusted" to appear more favorable to the administration in power. (And this has been going on for decades.) Most folks are screwed before they even do anything to the dollar!
 

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This is also a way to raise your property taxes. Your house is worth more so they charge you more based on the new assessment.

This doesn't take into account the regular increase in assessed value that occurs every other year on your property.

Let's say $17.00 per thousand of assesed value.

A 250k house x $17.00 = $4250.00.

A 50k increase on a 250k house would equal 300k x $17.00 = $5100.00

A $850.00 increase on your property tax bill thanks to some accounting tricks.

Nice plan, with the dollar devalued you'll have to pay extra for the same house with no improvments.
I've said this on a couple of posts and although it's just my opinion, I'll repeat it.

Even IF you OWN your own home outright, you could still lose it if you can't pay for the property taxes and the utilities.

It's been my feeling one of the fallout's of this economic nightmare was going to lead up to a huge land grab. With people unable to own their own homes/land and being unemployed it will essentially force them to voluntarily herd themselves into cities (either to get jobs or social programs), where they will be more easily controlled.

Sorry about the past paragraph being sort of OT.
 

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Yes and no

I've said this on a couple of posts and although it's just my opinion, I'll repeat it.

Even IF you OWN your own home outright, you could still lose it if you can't pay for the property taxes and the utilities.

It's been my feeling one of the fallout's of this economic nightmare was going to lead up to a huge land grab. With people unable to own their own homes/land and being unemployed it will essentially force them to voluntarily herd themselves into cities (either to get jobs or social programs), where they will be more easily controlled.

Sorry about the past paragraph being sort of OT.
Kind of agree with you. The only thing is that not many people will want to grab the land, even if they are wealthy . The thing is that if the people that were speculating and buying new homes and then flip them, just a few month after construction were doing it because of the quick profit they could turn. The present day scenario would be different. It would be hard to rent a home and it would be also hard to flip for a quick profit. So I am still trying to figure it out ???:xeye::xeye:
 

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Money manipulation has been a major tool of government for decades.
All market regulations aside, we don't live in a fully free market.
Wealth redistribution into wealthy hands is the norm.
An ignorant and obsequious public is the enabler.
 

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Kind of agree with you. The only thing is that not many people will want to grab the land, even if they are wealthy . The thing is that if the people that were speculating and buying new homes and then flip them, just a few month after construction were doing it because of the quick profit they could turn. The present day scenario would be different. It would be hard to rent a home and it would be also hard to flip for a quick profit. So I am still trying to figure it out ???:xeye::xeye:
It's just speculation on my part but I believe the people who are wanting the land is the government. Look at it like this. I live in Florida. We are surrounded by the coast...on the Atlantic ocean. Some of the most sought after and valuable land is beach front property. Florida is the worse state for eminent domain. Believe it or not some of homes right on the water and a block or two over are owned by upper middle class folks and retired middle class who bought their homes years and years ago. Every time the city tries to put in a new hotel or some such thing, the people fight it tooth and nail, and win. One of the ways that the city has started pushing people out is by raising their taxes and adding ungodly fees for everything imaginable.

Which is what I think will happen. The taxes will just keep going up until no one can afford to keep their house. And utilities. In my city alone we've had our utilities raised twice in 2008.

I know you might think I'm a little off for saying this, but I'm going to put it out there anyway. They want the land as a playground for the wealthy.

Our money is worthless, we're in debt over our heads and the only thing of value that we have left is our land. If China called in our debts tomorrow, we'd (the people)would be bankrupt overnight. Just like what happened in Argentina.
 

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Once read a quote, the supposedly low turtle , or snail travel around with their home on their back and man has to take a 30 year mortgage for his home and all those taxes to now. That quote really is true!!
 

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I've said this on a couple of posts and although it's just my opinion, I'll repeat it.

Even IF you OWN your own home outright, you could still lose it if you can't pay for the property taxes and the utilities.

It's been my feeling one of the fallout's of this economic nightmare was going to lead up to a huge land grab. With people unable to own their own homes/land and being unemployed it will essentially force them to voluntarily herd themselves into cities (either to get jobs or social programs), where they will be more easily controlled.

Sorry about the past paragraph being sort of OT.
I agree with you. I do not think it has been a as big of a conspiracy as some would believe, but it is happening. Not OTT at all.
 

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Uncountable regulations and taxes are the mark of a totalitarian society. There are so many laws that everyone is a criminal and the only real crime is failure to fully support the state.
It's time to boycott this system.
Squat the world.


Quote
Which is what I think will happen. The taxes will just keep going up until no one can afford to keep their house. And utilities. In my city alone we've had our utilities raised twice in 2008.

I know you might think I'm a little off for saying this, but I'm going to put it out there anyway. They want the land as a playground for the wealthy.

Our money is worthless, we're in debt over our heads and the only thing of value that we have left is our land. If China called in our debts tomorrow, we'd (the people)would be bankrupt overnight. Just like what happened in Argentina.[/QUOTE]
 

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Sort of interesting how an article is set out like a seed, if I see more stories about this scenario I would become very worried.

I would think if they do go about devaluing the dollar it will be more like 90% not 30%.

Just a thought, I know nothing.
 
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