Pale ALE................from Rico

Our 'new' normal will be BIFLATION:
- Debt-based assets (like homes) will continue to lose value.* The 'bottom' has not yet been reached. Some are saying we have 30-50% to fall yet. Look at the attached chart and decide for yourself...
- Essential goods (like food and energy) will continue to rise.

*In Japan over the last twenty years, real estate has lost 70% of its value (inflation-adjusted).

Pale ALE.
- No, not the kind where "time, gentlemen" is called, but Assets-Liabilities=Equity. Students of accounting know this well.- Home ownership for many has become a liability and not an asset. The same is becoming the case for Federal Reserve Notes (aka Dollars). They are NOT a 'safe haven' when you look at the attached chart showing the downward movement of the Dollar over time. Is Alexander Hamilton smiling from his grave? John Maynard Keynes surely must be spinning in his.

Take away?
- Real estate and Dollars may actually not be the best assets to hold. Think hard commodities, and skills. The new reality is that farmers and gold miners are more of a natural aristocracy....let's say meritocracy than the paper-pushers on Wall Street or in the FED or Treasury.