Home Prices and the “Little Money” Era
There is an ongoing trend, on a global scale, towards increasing the cost of housing. What you see in Milan, Rome, Berlin as London, or Munich as Barcelona, and New York as Mexico City, San Francisco as Tokyo, Madrid as Paris, is a well-constructed trend, the result of a precise economic vision, which is applied with geometric precision.
First, we need to get to the root of the problem: financial monopolies.
Imagine that you are a nascent economic activity, in the sense that you are appearing on the market, you are already quite large, but you want to join the big names. The real question is, in short, that you have arrived in Serie B, but not in Serie A. Good.
The problem that arises is that Serie A finance is made up of monopolists. Consequently, to go to Serie A to get money from the "Big Money" bag. Big money only plays with big players, but then how do these giants, if they are asked to grow further, grow if there are no opportunities for upward growth?
In this case, there is an area in which, over time, with well-being, money and financial space have accumulated. The “little money”.
So, if you are Blackrock, and you want to make even more money to make shareholders happy, then you have to go fishing for little money.
Little money is all those things that are found in ordinary people and in their consumption. The world of luxury, let's face it, is already saturated. After decades all the brands have grown by telling shareholders "we are targeting the luxury market", now the offer of goods and services is so large that it will not grow again. The spaces are now taken. But when you already have 3 Bentleys, what do you do? Is there room for another brand?
So, let's move on: little money exists. Ordinary people. Who don't have much money, but persist in saving a lot. But they still have to live.
So, let's give an example: you are BlackRock, but you now live in a saturated market that isn't growing. But your shareholders are hungry, they want dividends and profits. But the world of finance is now saturated, there is no growth upwards. What are you doing?
I'll tell you. You enter the capital of a Real Estate, of a large real estate, and buy 6000 apartments in Milan, as many in Berlin, and other large cities. But you don't rent them. Others follow you.
But you don't rent or sell them. The purchase is only to fgar increase the price. After that, out of the 6000, you rent a thousand. A thousand have less maintenance, require less work, but by buying another five thousand you have increased the price to the point that by renting just a thousand you make the profit you would have made by renting them all. But with less maintenance costs.
And so, a very strange phenomenon occurs: the Italian population is NOT growing, the cement surface increases, but the price of houses increases. Something that the market cannot explain. No, it's not the companies, those aren't growing much in number either.
Supply increases, demand does NOT increase, but the price doubles. The classical laws of the market are not working.
But if you are Blackrock, or KKR (or whatever) you can fish for little money in many other ways. You can buy telcos, and start working on the price of telephony. You can get into the capital of the big supermarket chains, and start raising prices. You can enter into the capital of the energy supply chain, and increase prices: it is a long supply chain, so there is a lot to "invest". You can enter the supply chain of the world of cars, or transport in general. You can go in anywhere and, even if you are a minority shareholder, drive up prices. They will obey both because they like to collect more money, but also because funds like yours are everywhere, so you can go into board meetings and say "everyone will do it, don't worry about the competition, the price won't go down".
The price of houses is just one case of this vision: you know well that ALL prices are increasing. Of course, you can delude yourself that with the crisis in Ukraine the price of flour has risen: then you see the farmers complaining that with Ukrainian wheat arriving in Italian ports, the price at the origin drops too much. Oops.
https://www.efanews.eu/item/33027-grano-ucraina-filiera-italia-cereali-italiani-penalizzate.html
Even in the world of energy, the “War in Ukraine” excuses are not convincing. Germany has built 6 regasifiers in 6 months, in fact, Italy has asked for an increase in imports from Mediterranean producers. In fact, no one has increased extraction capacity, which is regulated by OPEC.
But if they didn't extract more because OPEC didn't authorize extraction increases, how did they supply gas and oil to customers who "without Russia" asked for more?
Simple. A ship leaves from Russia. Arrives in the Tunisian port. The ship changes master. Now it is no longer a Russian ship, and the oil/gas is no longer Russian. And if no one does chemical analyses, it will happen that “Tunisian” oil/gas arrives in Italy.
And so, despite being exporters but not importers, in Algeria a regasifier arrives in Arzew and one in Skikda, and in Egypt Idku and Damietta. It's an open secret to know that Russian gas is bought and sold, only instead of using pipes, LNG ships and terminals are used. And the ships constantly change owners, so they leave Russian and arrive from many nations.
Furthermore, both in Italy and in Germany there are gas reserves, but they are not used. The mystery seems to relate to the fact that "the greens block everything", but in reality in Germany the greens don't block coal mines, and are in government, while in Italy they don't count for shit. But if you look at the ownership of many companies in the supply chain, you will notice that they are "blessed" by the entry into the capital of some of these "giants" of finance.
The truth is that the only opportunity they have to extract wealth is no longer the central bank because they no longer print money, it is no longer in big finance because now only big sharks swim in big pools , and therefore the usual old oxen herd of Cucciana remains.
The money is taken from where it is, and today the only remaining reserves are in the hands of the common citizen. Individually these are small quantities, but if we take the statistics on the savings and wealth of families throughout Europe, we discover that we are in fact the financial equivalent of an oil country. “Underground”, that is, in the form of the thousands of ways in which families accumulate money, and in the enormous quantity of “mandatory” expenses, immense quantities of money circulate.
The vision of the large groups, that is, is that the future of wealth extraction consists in the financial slaughter of the herd of cattle: ordinary people, families, their savings, their expenses, their income .
Is it a conspiracy? Absolutely not. It is a necessity for large groups. They must raise investments from the rich few, then invest, and they must then repay the investors. And there are no sectors that grow without already becoming giants that are difficult to attack. Or be participated.
How did this vision become common, you ask? How do you make this vision “common”? Simple: the large strategic consultancy companies. My sector, basically.
The point is that nowadays, NO manager of ANY company, bank, insurance, industry, foundation, whatever, does anything if it is not something that is recommended by the usual ones: Mc Kinsey, Gartner, Kpmg, PwC, Andersen Consulting ( I know, you've changed your name. But you know, the best photos are always those taken by young people), etc.
It's not possible because the rule of financial capitalism is that the Board of Directors is made up of people who know what they're doing, BUT the shareholders are a clique of mediocre imbeciles. And they are informed through newspapers that you don't normally find on newsstands (the various Bloomberg&c), which are the "data sources" of the various "Strategic Consultants".
If a Board of Directors or a CEO wants to do something that is NOT recommended by the usual strategic consultants, the shareholders (or StakeHolders) WILL NOT LET HIM DO IT.
No one will ever invest in any technology that is not in Gartner's HypeCurve (now there is one for every sector, before they were only emerging technologies), today it goes as far as porn. Do you want to know why today there is a peak in investments in artificial intelligence? Here's why everyone is throwing money at us, just look at Gartner's "forecasts" for 2021:
Do you see that “chatbots”, which was foreseen at the beginning of the “slope of nightment”, and then “plateau of productivity?”. Well, everyone invested there. Because Gartner said so, but so did everyone else. And no manager can even just wipe his ass with an investment, if Gartner doesn't say so.
Home exercise: do you want to know the future of porn? Obviously they don't write "porn" on it, but they hide it well. But it's in here.
“Socialcasting”, “Addressable advertising”, “Online video publishing”, etc. The interesting thing is that the world of porn already has these things, in fact it seems 3/4 years ahead of the rest (as always), but it's all about OnlyFans and ManyVids, dammit. Valentina (Nappi), equip yourself and open your OnlyFans. They will finance it for you with cascades of money: you are in the area where the money will arrive. Your ass is the next artificial intelligence. Open your ValentinaFans, or together with Rocco your ManyVid, because they will beg you to be able to give you billions.
With that said, let's get back to the point: big money wants to expand downwards.
And therefore everything, but everything it touches aims at the savings and wages of ordinary people.
We “ordinary people” are the target. To live decently you will need to adapt. Personally:
- For useful but not strictly necessary things, use leasing. Your consumption must become THEIR financial problem, both during and at the end. Do they skin you? Ditch the lease and give the thing back to them. Example: electric scooter. It's very convenient for me, but I won't pay for it from my account. First camel, then coin.
- If you don't have a lease, rent them, or buy them in installments with possible repayment upon repayment. Leave the risk in their hands. This is not the time to buy cars, motorcycles, electric bikes, sofas, kitchens, and everything else. This is why they urge you to do so more insistently. You are the prey.
- Risks: Between crime and the climate, a car left outside is a risk you take on. Anything you don't lock in a vault is a risk you take on. Anything that costs money and can be stolen or damaged should be leased or insured. Move the financial problem into the hands of others.
- Buy a house? There's no talking about it, this speculation will deflate sooner or later. It's too risky. If the price is at an all-time high, it's easier for it to fall rather than rise further. Don't do it: the risk is all on your side.
- Green investments. Let it go. We are at the beginning, and at the beginning there are all risks. Soon things will get worse and it will get serious, And then investments will also be diverted again. The green is brown for now. Shitbrown.
- Electric Cars. We are still in the pioneering state, as far as batteries are concerned. The second generation is already promised for 2027. If you buy today, in 4 years you will have a wreck. If you do: leasing, leasing, leasing. Let the problem be theirs. If they don't give it to you, consider opening a p. VAT only for that, after checking for taxes.
- Solar panels. The new 600W/meter generation is still rolling, but the 800W/meter one will be in production in two years. The investment in solar is a declining investment. You will lose value. Forget it, let the big and rich ones invest. Not you. No savings will ever bring you to break even, because there are two new generations on the way. The only exception: they offer you leasing or zero-interest financing for purchase in installments. The match, in their hands. Always.
- Salary: Benefits are better than money. Money is the prey. So: company phone, company SIM, meal vouchers (do they still exist in Italy?), company car (they are leased anyway, if they don't give it to you as private individuals.) company canteen if you have it. Benefits before salary.
- Expenses. Fuel before price. Go out of town for anything. Prices in the city are the result of speculation. If you have to go out on the weekend, take the car (or other means of transport if you like them and have them) and go out, within the range for which the trip covers the price difference.
- Young people: either you leave, but you would only be fatter prey, or you stay at home with your parents, or spend more time studying. This is not the time to look for work. Leave the question of commerce in their hands.
Let's be clear, you won't make any revolution and BlackRock certainly won't go bankrupt because of this. But at a certain point, the question is always the same: "all true, but what did I do for myself in that period?"
The common point in all these actions is to leave the financial bag in the hands of others.
Because one thing I didn't tell you is that this "new vision" is terribly short-term, medium-term at best. Then the cow dies. Sooner or later all this will end, IT WILL END VERY BADLY, and you will have to have as few lit matches as possible in your hand.