Rental Rates Up 18% in Phoenix – Great News For Cash Flow Real Estate Investors!

 

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JUL132012

Rental rates up 18% in Phoenix

 

Phoenix rental rates are up 18% in the last 12 months, making it one of the greatest places in the nation to invest in cash flowing real estate! Couple this with the fact that Arizona continues to grow with education across the valley as well as being one of the premiere retirement spots in the world as baby boomers are approaching retirement and rapidly moving towards Phoenix. Values and rental rates are increasing along with a greater demand for rentals, as unfortunately, foreclosures still plague the state.

 

Euro crisis effects gold

When the Euro currency takes a hit it props up the dollar which brings down dollar cost of gold. But the european debt crisis is simply a symptom of the cancer that the global financial system has, thus it will eventually help destroy the dollar and send gold through the roof!

 

Happy 40th Birthday to a gold free dollar! – A comparison between 1971 and 2011.

By: Joshua Gayman

In 1970 the US Government was running a spending deficit and a trade deficit(just like today) and so they were depleting their gold reserves because at the time the dollar was attached to gold to give it a hard asset-backed value.

This deficit spending caused inflation, which meant that other countries’ currencies would be devalued because all of the currencies of the developed nations in the world have been attached to the dollar since Bretton Woods in 1944(right after World War 2)

In 1971, Germany did not like that their currency was being devalued to keep the US dollar propped up, and so they unilaterally left the Bretton Woods system. This move by Germany strengthened their economy and simultaneously, the dollar dropped 7.5% against the Deutsche Mark.

Other countries started demanding payment from the United States in Gold due to the execessive printing of dollars and the negative trade imbalance of America.

On August 9th, 1971, France unilaterally withdrew from the Bretton Woods system, leaving their tie to the US dollar. As the dollar plunged again and to prevent a total collapse, President Nixon cut the link with the US Dollar from the gold standard less than one week later on August 15th, 1971-immediately and without the approval from Congress. Since that day, the dollar has been a fiat currency, a debt, and the United States has been the only country in the world to literally have the ability to print as much of it as they want.

Fast forward 40 years…

The dollar has lost 97.5% of it’s purchasing power. We have gone through the biggest booms in the history of the world. We have seen the biggest bust in the history of the world.

Today..

Unemployment is at records highs. The trade deficit and budget deficit are both at record highs. Foreclosure is at record highs. The money supply is rapidly setting new records. Again, like 1971, other countries are wanting out of their tie from their currency to the US dollar, and for the same reasons they did 40 years ago..That is, execessive printing and a trade deficit. This time, there is also a record budget deficit, and the US credit rating has been downgraded.

What major actions are left to be taken? Interest rates are already near zero, they are pumping as many dollars into circulation as possible, and they cannot cut spending enough to balance the budget, no matter what they cut.

There is no way gold can drop in value until the dollar dies and a new currency is set. Look at the pictures below to see why:

Special guest appearance: Joshua II – Credit downgrade panics wall street August 8 2011: DOW drops 600 more points, gold over $1750

Dow crashes more than 600 points today in biggest loss of year and gold is up over $1700 per ounce all stemming from US debt credit rating downgrade.

 

By: Joshua Gamen

 

 

 

GOLD AND SILVER SURGING FROM US DEBT CREDIT DOWNGRADE

 

 

Silver up almost 5% and gold up 2% IN 3 HOURS!!!!! There’s a leak in the dollar bubble and it looks to be on a seam! By: Joshua Gamen

 

 

 

S&P downgrades US debt

“If the US Government was a family, they would be making $58,000 a year, they spend $75,000 a year, & are $327,000 in credit card debt. They are currently proposing BIG spending cuts to reduce their spending to $72,000 a year. These are the actual proportions of the federal budget & debt, reduced to a level that we can understand.”

– Dave Ramsey

3 months ago S&P downgraded the economic outlook on US debt from “stable” to “negative.”

Last week Moody’s downgraded the economic outlook on US debt from “stable” to “negative.”

Last night S&P downgraded the US debt from it’s sterling “AAA” rating to” AA+ with a negative outlook.”

Just like S&P and Moody’s didn’t downgrade subprime CDOs until the mortgage-backed bonds they held were practically worthless, S&P waited for U.S. debt obligations to reach five times GDP and for the U.S. dollar to lose 84% of its purchasing power over the course of a single decade.