House prices and the “Little Money” era
There is an ongoing trend, on a global scale, of rising housing costs. What you see in Milan, Rome, Berlin like London, or Munich like Barcelona, and New York like Mexico City, San Francisco like Tokyo, Madrid like Paris, is a well-constructed trend, the result of a precise economic vision, which is applied with geometric precision.
First, we need to go to the root of the problem: the financial monopolies.
Imagine that you are a nascent economic activity, in the sense that you are appearing on the market, you are already big enough, but you want to enter 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 the A series of 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 prosperity, money and financial spaces have accumulated. The "little money".
So, if you're Blackrock, and you want to make even more money to keep the shareholders happy, then you need to go little money fishing.
Little money is all those things that they fish for in ordinary people, and in their consumption. Let's face it, the world of luxury is already saturated. After decades in which all the brands have grown by saying to the shareholders "we turn to the luxury market", by now the offer of goods and services is so great that it will not grow yet. Now the spaces are taken. But when you already have 3 Bentleys, what do you do? Is there room for another brand?
So, let's go ahead: there is little money. The common people. Who don't have much money, but they insist on saving a lot. But they have to live.
So, let's take an example: you are BlackRock, but you now live in a saturated market, which is not growing. But your shareholders are ravenous, they want dividends and profits. But the world of finance is now saturated, there is no upward growth. What are you doing?
I tell you. Enter the capital of a Real Estate, a large real estate, and buy 6,000 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 6,000, a thousand are rented out. A thousand have less maintenance, require less work, but by buying another five thousand you have increased the price to such an extent 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 does NOT grow, the cemented surface increases, but the price of houses increases. Something the market can't explain. No, it's not the companies, they 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're 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 enter the capital of the large supermarket chains, and start driving up prices. You can enter the capital of the energy chain, and raise prices: it's a long chain, so there's a lot to "invest". You can enter the supply chain of the world of cars, or of transport in general. You can enter anywhere and, even if you are a minority shareholder, raise prices. They will obey both because they like to collect more money, but also because funds like yours are everywhere, so you can enter the board meetings and say “everyone will do it, don't worry about the competition, the price won't go down”.
House prices are just one example of this vision: you know that ALL prices are rising. 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, then the price at the origin drops too much. Oops.
https://www.efanews.eu/item/33027-grano-ukraina-filiera-italia-cereali-italiani-penalizzati.html
Not even in the world of energy are the “War in Ukraine” excuses convincing. Germany has built 6 regasification terminals in 6 months, in fact, Italy has asked for an increase in imports from Mediterranean producers. In fact, no one has increased extractive capacity, which is regulated by OPEC.
But if they didn't extract more because OPEC didn't authorize increases in extraction, 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 owner. It is now no longer a Russian vessel, and the oil/gas is no longer Russian. And if nobody does chemical analyses, it will happen that the “Tunisian” oil/gas arrives in Italy.
And so, despite being exporters but not importers, a regasification terminal arrives in Algeria at Arzew and one at Skikda, and in Egypt Idku and Damietta. It's an open secret that Russian gas is bought and sold, only instead of using pipes, ships and LNG terminals are used. And the ships change owners continuously, so that Russians leave and many nations arrive.
Moreover, both in Italy and in Germany there are gas reserves, but they are not used. The mystery seems related to the fact that "the greens block everything", but in reality 'in Germany the greens do not block the 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 large pools , and therefore remains the usual, old Buoi park of Cucciana memory.
The money is taken from where it is, and today the only reserves left are in the hands of the common citizen. Individually these are small numbers, but if we take the statistics on household savings and wealth across Europe, we find 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 "compulsory" expenses, immense quantities of money circulate.
In other words, the vision of the large groups is that the future of wealth extraction consists in the financial slaughter of the oxen park: ordinary people, families, their savings, their expenses, their income .
Is it a conspiracy? Absolutely not. It is a necessity of large groups. They have to raise investment from the wealthy few, then invest, and then have to pay back the investors. And there are no sectors that grow without having already become giants that are difficult to attack. Or be participated.
How did this view become common, you ask? How does this vision become “common”? Simple: the Big Strategic Consulting Companies. My industry, 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: Mc Kinsey, Gartner, Kpmg, PwC, Andersen Consulting ( I know, you changed your name, but you know, the best photos are always the ones taken when you were young), etcetera.
It is not possible because the rule of financial capitalism is that the board is made up of people who know what they are doing, BUT the shareholders are a bunch 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 or CEO wants to do something NOT recommended by the usual strategic advisors, the shareholders (or StakeHolders) WON'T LET HIM DO IT.
No one will ever invest in any technology that isn't in Gartner's HypeCurve (now there's one for every sector, before they were just emerging technologies), today we get to porn. Do you want to know why there is a peak of investments in artificial intelligence today? Here's why everyone is throwing money at it, just look at Gartner's "predictions" in 2021:
You see that "chatbots", which was expected at the beginning of the "slope of nightment", and then "plateau of productivity?". Here, everyone has invested there. Because Gartner said it, but so did everyone else. And no manager can even wipe their ass with an investment, unless Gartner says so.
Home Workout: Do you want to know the future of porn? Of course, 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, indeed it seems 3/4 years ahead of the rest (as always), but everything speaks of OnlyFans and ManyVids, beast. Valentina (Nappi), Get equipped and open your OnlyFans. They will finance it with cascades of money: you are in the area where the money will arrive. Your ass is the next AI. Open your ValentinaFans, or together with Rocco your ManyVid, because they will beg you to be able to give you billions.
That said, let's get back to the point: big money wants to expand downwards.
And therefore everything, but everything he touches aims at the savings and wages of ordinary people.
We "ordinary people" are the target. To live decently it will be necessary to adapt. Personally:
- For things that are useful but not strictly necessary, use leasing. Your consumption must become THEIR financial problem, both during and at the end. Do they skin you? Drop the lease and give him the thing back. Example: electric scooter. It's very convenient for me, but I won't pay it from my account. First camel, then coin.
- If you don't have leases, rent them, or buy them in installments with possible repayment upon extinction. Leave the risk in their hands. This is not the time to buy cars, motorcycles, electric bikes, sofas, kitchens, and everything. This is why they are proposing you more insistently to do so. You are the prey.
- Risks: between crime and climate, a car left outside is a risk you take on. Anything you don't lock away 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? We don't talk about it, this speculation will sooner or later deflate. It's too risky. If the price is at an all-time high, it's easier for it to go down than to go up again. Don't do it: the risk is all on your side.
- Investments in the green. Forget it. 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 the investments will also be diverted again. The green is brown for now. Shitbrowns.
- Electric cars. We are still at the pioneering stage, as far as batteries are concerned. The second generation is already promised for 2027. If you buy today, you will have a junk in 4 years. If you do: lease, lease, lease. Let them be the problem. If they don't give it to you, consider opening a p. VAT for that only, after checking for taxes.
- Solar panels. The new 600W/meter generation is still rolling out, but the 800W/meter one will be in production in two years. The investment in solar energy is a declining investment. You will lose value. Forget it, let the big and rich ones invest. Not you. No savings will ever take you to break even, because there are two new generations on the way. The only exception: they offer zero-interest leasing or financing for installment purchases. 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're leased anyway, if they don't give it to you as private individuals. ) company canteen if you have one. 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 if you like them and have them) and go out, in the range for which the trip covers the price delta.
- Young people: either you leave, but you'll only be fatter prey, or you stay at home with your parents, or you spend more time studying. This is not the time to look for work. Leave the match of commerce in their hands.
Let me be clear, you won't make any revolution and certainly BlackRock won't fail because of it. But at some point, the question is always the same: "all true, but what did I do for myself during that period?"
The common point of all these actions is to leave the financial match in the hands of others.
Because one thing I haven't told 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, VERY BAD, and you will have to have as few lighted matches as possible in your hand.