{"id":36970,"date":"2018-08-23T07:35:15","date_gmt":"2018-08-23T12:35:15","guid":{"rendered":"http:\/\/olduvai.ca\/?p=36970"},"modified":"2018-08-23T07:35:15","modified_gmt":"2018-08-23T12:35:15","slug":"real-estate-understanding-the-role-of-debt","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=36970","title":{"rendered":"Real Estate & Understanding The Role of Debt"},"content":{"rendered":"
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Real Estate & Understanding The Role of Debt<\/a><\/h3>\n<\/div>\n
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QUESTION:<\/strong> Dear Sir\/Madam<\/p>\n

Thank you so much for what you all do.<\/p>\n

I was just reading today\u2019s Blog 17-08-2018 \u2013 \u00a0\u2018 Real Estate \u2013 Leverage \u2013 Transition to the Reset \u2018.\u00a0\u00a0 The bit I did not understand was where it was written\u00a0 \u2018 Keep in mind that as the currency declines, then the repayment cost of a mortgage declines. One the one hand, mortgages will be unavailable\u00a0but those who hold the mortgage lose the most \u2018<\/p>\n

My question is when the Reset happens in which way will the mortgage holders lose the most even if the repayment cost of a mortgage declines ?\u00a0 I live in the UK<\/p>\n

thank you so much<\/p>\n

ANSWER:<\/strong> Since I posted that chart from Socrates that illustrates real estate, many people have written in to ask where can they find that on Socrates. This is part of the pro version that will be released\u00a0WE HOPE<\/strong> for the WEC this year (see Socrates Newsletter just sent out). Here are the real estate markets covered by Socrates at this time.<\/p>\n

What I mean when I say that those who hold mortgages lose in such a situation of a decline in the purchasing power of a currency is basic. The city of Detroit suspended its payments on bonds in 1937. They resumed in 1963. Now they say they never defaulted. However, they paid back with cheaper dollars. The holder of a mortgage or a bond charges interest which is supposed to be more than the inflation rate. When inflation exceeds the interest rate, then you are paying back with cheaper dollars.<\/p>\n

Take a life-insurance policy. If you bought one in the 1940s and it was for the huge amount of $5,000, after funeral costs of say $1,500, you left your heirs a sizable chunk\u00a0of money.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Real Estate & Understanding The Role of Debt QUESTION: Dear Sir\/Madam Thank you so much for what you all do. I was just reading today\u2019s Blog 17-08-2018 \u2013 \u00a0\u2018 Real Estate \u2013 Leverage \u2013 Transition to the Reset \u2018.\u00a0\u00a0 The bit I did not understand was where it was written\u00a0 \u2018 Keep in mind that […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[5496,195,5479,668],"class_list":["post-36970","post","type-post","status-publish","format-standard","hentry","category-economics","tag-armstrong-economics","tag-debt","tag-martin-armstrong","tag-real-estate"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/36970","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=36970"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/36970\/revisions"}],"predecessor-version":[{"id":36971,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/36970\/revisions\/36971"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=36970"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=36970"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=36970"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}