Real inflation is now 17% (according to shadowstats.com). Banks still offer commercial loans at 6% interest. This is an 11% LOSS to the banks and an 11% GAIN to you.
To compound the error, the dollar is circling the drain, so most debt will likely never be repaid. Even yours. What can't be paid, won't be paid.
Typical bankers still watch mainstream misinformation so have no idea a massive collapse or reset of the global financial system is imminent (unless civil war or nuclear war hit first).
Those who give out loans today, are suckers.
Although most money loaned out is not theirs anyway and it's mostly keystroked-out-of-thin-air counterfeit money too. So no real loss to them.
But even if you take the loan, and the free 11% interest, AND pay it back, you gain massive amounts of TIME that you never have to repay. You gain this time by buying a business or income property where others do the managing and the work, not you. You’ve stopped trading time for money. This free time never has to be repaid.
The smart money is out there buying as many businesses & income properties with borrowed money as they can. When the dollar collapses to zero, real properties still have value. Real properties don’t go “poof” overnight with no warning. Real properties are not so easy to steal as digits & dollars in some account.
When ALL loans can't be paid, there aren't enough enforcers in the world to repossess all that property. Possession could become the law.
Even normal people who DON’T know how to buy businesses & income properties can use this strategy to their advantage. Just buy real goods. Convert loans of those melting dollars & digits into food, medicine, clothing, tools, equipment, power supplies, land, farms, gold & silver.
Or use any excess money you already have to buy goods with long code dates that people will always barter for like liquor, cigarettes, coffee, seeds, honey, canned food, soap, toothpaste, ammunition. No loans needed.
Or perhaps you'll use a credit card. Unpaid credit card companies never repossess personal goods charged to that card.
Or, if you've seen these days coming, socked away enough of all value & security categories, AND have zero debt, you don't have to risk taking ANY loans. Congratulations for your foresight & preparation.
The world is in transition. Many will not survive it, which is less tragic than it appears because our souls live forever. But most want to play the game here as long as possible. Contrarian thinking and a little preparation greatly increases the odds of a longer game.
In the meantime, those who still loan out, hold and accept paper, digits & dollars, will soon be left holding an empty bag.
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Learn Some Lessons From People Who Survived Zimbabwe Hyper-Inflation
More Financial Advice: Ten Wealth Transfer Truths & 87 Ways to Earn Cash Without a Job
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Find more of Mike Johnson's writings at JeansandaDog.com