05.22.12 Tuesday Talk: Economy Versus Currency

by qinfovio 19. June 2012 16:46
Good afternoon,
I am seeing more and more investors that are trying to approach home owners that have received a NOD notice of default.
This time, the picture is different that it was 10 years or 15 years ago. None of these properties have enough equity to cover their mortgage.
Their options are deed in lieu, short sale, loan modification or foreclosure. Investors can only buy these properties at the court house
or as a short sale through real estate office.
Here is a good link to go check the entire process, it is very complex. All lenders are now sending an ARM length transaction disclosures
to all their short sale. They want to be sure that there is no fraudulent act and everybody including buyers, sellers and their agents
have to sign.
Be very careful with all these disclosures made specifically to prevent fraudulent act!
Today, I want to say few words concerning "Currency versus Economy".
The value of a currency is base on supply and demand and not in the economy of a country. The more demand there is for your currency,
the more value your currency will have.
But if your print more money so you can pay your debt, they will be over supply of money and the currency value will go down.
This will mean that you will need more money to buy less and it is what we call inflation.
Raising Inflation/Price due to an economy that is booming without putting more money in the market is not inflation, it is just a shortage of your currency.
It is also a growing economy fuel with speculation without real income growth.
As now you can see the price of a barrel of oil at  $92.00 but price at the pump is going up instead of going down.
Less investors/demands for U.S dollars and over supply of currency.
We have 2 majors events that might trigger a further decline of our currency.
First one is PAGE Pan Asian Gold Exchange that I shared with you in one of my Tuesday Talk
The purpose of PAGE is to take over the world currency by backing up their gold with 100% gold.
and the other one is the embargo with Iran that will take place July 1. Iran was not planning to trade oil in US dollar anymore
We are expecting a new edition of Aftershock for this year (last one was done in 2010) that I think might come in the fall.
They are expecting last 2 bubbles to pop "Us Dollar" and our "Government Debt" and these events might do it!
Thanks and I will see you next week.


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