We're back from beautiful sunny Barcelona.
That's us 4 days ago taking in the last rays of Catalonian sunshine along the Barcelona beach.
I had no idea that the beach didn't exist before 1992.
You would never guess that by looking at it.
It's a man-made beach created for the 1992 Olympics. The sand washes away every year and they bring in brand new stuff from Egypt to replenish the beach shoreline.
Humans are amazing.
My past experiences in Barcelona didn't really sell me on the place.
But that all changed on this trip.
The city, the sights, the food, the La Boqueria food market...all super great.
I could spend days in La Boqueria alone eating tiny fried fish served in a french fry cup.
Anyhoo, back to Canada and it didn't take long for the financial situation here to become top of mind.
A few weeks ago, we explained that if you and/or your family don't outrun the line on this chart of Canada's M2 money supply...you'll just never get ahead financially.
We even mapped M2 growth to real estate prices and there's a pretty stunning correlation.
This got a lot of people asking us about M2, real estate, and money.
So we made a brand new video breaking it all down. In it, we outline the critical importance of understanding how Canada's M2 works.
You can check it out right here:
You can also click right here to watch the video on our YouTube channel.
Please share any more questions you have in the comments so we can tackle them in future videos! And hit the Subscribe button so you don't miss any videos.
What most Canadians don't understand is that if you do not outrun M2 growth, you're standing in financial quicksand.
Your personal purchasing power is literally sinking every single day.
And Canada is 100% addicted to growing its money supply and making that quicksand effect worse.
Even in times of high interest rates, like right now, we somehow in this country managed to create even more M2.
That should be very difficult to do.
But we've found a way!!
Check this out...
The U.S. had their M2 come down after raising interest rates:
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This means there's fewer dollars in the U.S. than there was just 12 months ago.
They do this because the central bankers are petrified of inflation and inflation was getting out of control both here and in the U.S.
Just check your grocery prices to confirm this.
So they raise rates, which increases debt payments, which destroys money.
This, in theory, brings down inflation over time.
Canada's M2 was coming down too. And it started to come down exactly when rates really started ramping up.
That makes sense, and that's one of the goals of central bankers when they raise rates.
But check this out...
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When the latest data came out this week, you can see the July M2 balance went up.
What the #@!$?
How is that happening?
Remember, for M2 to go up more dollars must be created than destroyed with debt payments.
So even in a high rate environment, Canada is somehow finding a way to create even more dollars?
We're not even officially in a recession yet and M2 is going up?
Now, think about this...
What happens when a recession does hit and the central banks need to "stimulate" us out of it?
If M2 is growing now, what the heck is M2 growth going to look like then?
And what's going to happen to your grocery prices then?!
We're desperately trying to find the cause of this M2 growth and we'll keep you posted.
In the meantime, just this week the government announced they're going to create another 20 billion dollars out of thin air to support new rental housing. (Source)
Think about this for a second...
Housing costs are out of control because of all the M2 growth over the last several decades.
Now, the government, to fix this and provide "cheaper housing" options, is going to allow MORE M2 growth.
They are trying to fix a second order problem, expensive housing, by making the first order problem, bad money, even worse.
This is exactly the type of stuff we dive into in the new YouTube video I mentioned above:
Why You Must Outrun The Line On This Chart to Get Ahead Financially
(click here to watch this new video)
Remember, understanding how M2 works is going to be critical to building your own financial freedom and living life on your terms going forward.
M2 growth is the "hurdle rate" you must grow your income by in order to stay ahead of the devaluation that's incoming.
These are very turbulent financial times.
And at the Your Life. Your Terms. Event on Saturday October 14, 2023 we're going to do our very best to you give you the information we're using ourselves to prepare for the next 2-5 years.
If the 2010s were the decade of "everything grinds higher"...
the 2020s are the decade of "wild volatility in everything".
Brace for the next few years.
It's going to be wild.
The people you surround yourself with are going to be more important than ever.
At the Your Life. Your Terms. Event, we don't just have great speakers lined up for you...
...we have an amazing set of sponsors, who you'll want to meet and make relationships with.
We have real estate paralegals, lawyers, mortgage brokers from Toronto, mortgage brokers from Alberta, investors and builders from Florida, tenant placement services, financial educators who are working exclusively with kids, real estate accountants and more!!
And...
We are bringing in Bull Bitcoin too!
Bull Bitcoin is one of the best Bitcoin-only exchanges and payment service companies in Canada.
We're huge fans.
They're based in Montreal and they're flying in to be there for you.
These guys are absolutely fantastic.
(Quick Aside: Tomorrow we're releasing a new podcast with their founder, who spoke to us from the jungle in Costa Rica! You can even go to RockStarBTC.ca and land on a special page where anyone grabbing a new account with them gets $20 in free Bitcoin! Thank you Bull Bitcoin!!)
And the Rock Star team is going to be there too!!
So now if you have any questions about anything at all, there should be someone in-house that day to get you an answer.
We're absolutely going to max out for this event and we're actually getting close now.
We're at 87% of capacity already.
So don't wait, grab your seat for this now, and check out all the details at:
www.YourLifeYourTermsEvent.com
We can't believe the response to this event, it's been humbling and we're going to do our best to make this something special.
See you on Saturday October, 14, 2023!!
Tom & Nick
p.s. Remember to check out our new video on M2 and share it with anyone who you think can benefit!! We all need to know this stuff! You can check it out on our YouTube channel by clicking here.
