by Ramsey Su
Deflation is upon us. There is excess capacity in everything far in excess of demand. Every Central Bank in the world is devaluing its currency. The US alone added over $4 trillion to the Fed’s balance sheet. Abe has been going hog wild in Japan during the last two years. Euroland is finally joining us with a “me too” QE. Under these circumstances, it should be a no-brainer that any asset such as gold, cows, oil and real estate should hold value better than paper money. Real estate has utility value. It provides shelter. Taking out a mortgage is even better, borrowing at today’s dollars only to repay it with future dollars that are likely to be worth a lot less.
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