2/20/11: The Coming Wave of Inflation – Profiting When the Levee Breaks

Central banks around the world have been pumping “liquidity” into their respective economies since 2008. In the USA, the Fed has gone through two rounds of “Quantitative Easing” (QE1 and QE2) and has been talking about a third.  Meanwhile, the government is piling up debt at a record pace.

What does it all mean?  And where is all this “liquidity” going?

Slogging through the headlines in our galoshes:

  • Your host and rainmaker, Robert Helms
  • Your co-host and chief drip, Russell Gray

Have you ever wondered where the Fed gets the money it uses to purchase government debt or toxic assets?  We’ve heard it said they have a magic checkbook – one whose checks NEVER bounce.  Hey! We want one of those!

So when the Fed buys stuff in the “open market”, where does the money go?  And once it enters the economy, how does it spread around?  Will any of it puddle up in real estate?

If you’ve been baffled by all of this, but can see gold, oil, gas, groceries, clothing and your Big Mac and Starbucks all going up, then you already have part of the answer.  Maybe those pundits who proclaim no inflation are really all wet?

Tune in to this episode as we explain how the added liquidity created by expansionary monetary policy dams up and then overflows through a series of levee breaks, eventually bringing a wave you can ride.  But you need to be on your board and paddling well before the dam flood comes.

Remember:  when asset values go up (denominated in dollars), equity happens. If you want it to happen to you, you have to get in while the tide is low, then be lifted by the rising waters.  So grab your rubber ducky and let’s get our feet wet.

Listen now!
Don’t miss a show – subscribe to the free podcast!
Want More?  Sign up for The Real Estate Guys™ free newsletter!

The Real Estate Guys™ Radio Show podcast provides education, information, training and resources to help investors make money with their real estate investments.