In good times, when the economic system is solid, you could say all these things pictured are assets. Even prudent choices. But, the cars, the houses, the 401k, they all depend on the economy continuing. About inflation staying low. About markets staying viable. And there still being buyers.
We have to believe, and for it to be a fact, that we are not just about to be the next Wiemar Germany.
Further, we have to believe in continuing growth. This entire monetary house of cards is based on continual growth. If it the population ever dips, it is all over. The bubble doesn't just pop, a part of the imaginary money economy just disappears. Gone, all the buyers gone, while people still owe on the mortgages.
We know the birthrates are plummeting. We know what is coming to the monetary system that needs ever more debt to continue.
What we don't know is how soon. What we don't know is the banksters plans to change to a "new dollar" or how the people of the world will receive it. What we don't know is how far society will collapse (if at all). Do we go back to the stone age?
Your car, is it an asset?
Most people have a car so that they can go to work to make money to afford the house where they sleep. In this case, a car is a necessity.
Unfortunately, most people start thinking that a very expensive car, is a necessity, and they can afford it. (If you can't afford 5 of them, you cannot afford 1 of them) And so, these people buy it on time. Which is a poor decision. And will become a BAD decision if the monetary system freezes up, or the infrastructure collapses.
In Venezuela they had one of the richest economies, and lots of people bought cars on credit, because the price of cars were going up. They thought that they were being smart, but almost overnight, they had expensive paperweights. You couldn't get parts, you couldn't get gasoline at times. But you still had to pay the loan.
In America we are watching as soo many roads and bridges deteriorate. I pity the foo who buys a Lambo in this next crypto bull run. It will make them a target (as people are having to decide on food or rent) and you won't have a good road to even drive your fancy money sink.
Housing as a boat anchor
The real estate market has gone up and up and up because of keeping housing inventory tight. But, this all falls apart when the population goes down. This is what happens to create a ghost town. Imagine a large city becoming a ghost town.
As boomers move into care facilities or mortuary plots, 25%, a quarter of all houses in America will be dumped on the market. A market that can't afford them at the current prices.
Imagine a young couple, in their 40s, just bought their first house, thinking themselves lucky. And, from financial collapse and real estate collapse they are left with a huge mortgage and a house that isn't even worth 25% of what they paid. This is what is coming.
Your house is not an asset, it is your greatest liability. And, if we are on the edge of a financial collapse, it is a really BIG liability.
Stocks, Bonds and mutual funds
The trifecta of balanced investment portfolio. Which will all go down in a financial collapse. All that money you put into your 401k, if it still exists, will buy groceries, if you are lucky.
Unfortunately, it probably won't exist. There are already plans to crush the markets and steal all the retirement accounts.
The Fed/The US can pay their bond holders forever, except, what will the paper be worth. That $1000 EE Bond may buy a loaf of bread at maturity. And, i say may, because there might not be any bread for sale.
It is the same for Social inSecurity. As long as they can print money, the retirement disbursements will continue, but will they pay for rent and food?
What about bonds? Even if they crash, surely they will come back. Which might be true, if the stock market wasn't being closed down due to fraud. The selling and reselling of ghost shares because the stock markets allowed high speed trading, and didn't demand high speed accounting and verification.
Paper dollars were everywhere in Wiemar Germany, too bad the paper was worth less because it was already printed upon.
As we get closer to financial collapse, it will become increasingly apparent to those who know, that the old investments will become worthless.
Unfortunately, those who do not know will try harder to "invest correctly", meaning they will try harder to build up their 401k. And, by the time they look toward precious metals, there may be no physical available for sale. And then, if they had a friend who was in bitcoin, they may try to get into bitcoin as it goes past a million. They could buy 2000 satoshis for a $20, but the fees will be too great.
I am glad to be part of this community, who already knows about cryptos and their future. Because it is not going to be nice watching people, who thought they were doing everything right, become unable to pay rent, or by groceries.
Maybe Trump and Musk have a plan to save the Americans. I won't hold my breath.
Because all i see is more stable coins and CBDCs under another name. And a lot of banksters salivating over their perceived windfall.
Anyway, you will want to have some cash, some silver and some crypto. Each will be necessary to get across this financial collapse.
i have always viewed any vehicle as a wealth dump and so many people I know buy well out of their price range in some sort of poor effort of flexing wealth that they don't actually have. I have always found car payments, large car payments, to be one of the biggest drains on the working class and it is very effective. There are these places here in the states that intentionally target people with horrible credit ratings and rope them into really terrible long-term payments plans that they are definitely going to default on. There is a huge industry that revolves around repossessing these cars with a drive by tow truck operation and there are video channels that make a circus out of this for internet points.
One side of me feels bad for these people who are being targeted, but another side shrugs its shoulders at how they are the victims of their own stupidity.
For me, I have always had a rather crap looking car that is functional. I have only ever owned a brand new car once, and that was a very basic sedan and the only reason I bought it was because the US car industry was in the toilet and every company was offering 0% financing. It was nice owning a brand new car sure, but there wasn't really any benefit beyond the initial glee of that wonderful new car smell.
I disagree about property not being an asset though. But this is only if you aren't a slave to the payments. Now that I am in the clear with my property I am just angry that we as a society have accepted that the government is allowed to tax you to have property. There is some talks about abolishing land/property taxes and that would be wonderful.
Yeah, the thing about property not being an asset is a LARGE bit to swallow.
Just because it is NOT, and NOT and not how things are done now. Meaning, at least 3 big changes is coming, to make it so. To me, they are all one big sticky mess, and so will all change together.
Sooooo, it will be an asset, to those who live and farm there. But it will not be a financial asset, because no one sells property where all their friends live. And it just become something not done.