How great of a day was Labour Day?
That's the weather we need more of!
One of our family friends has a boat on Lake Ontario and asked us to join them as they watched the CNE Air Show from the water.
As a kid, I used to ride my bike with friends as close to the CNE as possible to try and get a view of the air show.
But I can now say that it didn't come close to watching it from the lake.
Amazing. And those pilots are incredible.
That's a picture (above) as they flew right over us.
The work that must go into flying eight planes in formation like we saw on Monday is mindblowing to me.
You know what else takes some serious work these days?
Living life on your terms in Canada!
Between out of control rents, interest rates, and the M2 money supply that has more than doubled since 2008...it takes skill to live life on your terms.
Last week, we discussed the impact of M2 on our living standards.
Here's another example of that courtesy of Lyn Alden who put this chart out on Twitter:
That's the money supply growth in the U.S. from 2020 until today.
Check out the corresponding costs of building costs and home prices.
As the money supply increases, the "dollar price" goes up.
It takes more dollars to buy the same things because the money supply has increased.
This goes back to our point that the real story right now isn't how expensive groceries are or how expensive rent is.
The real story is that these things are expensive because governments, including Canada, are creating so many new dollars that it's devaluing the existing dollars very rapidly.
It's literally robbing you of your purchasing power.
If your income doesn't go up as fast as M2 then not only does everything feel more expensive, you're actually getting "poorer" in real time.
So while the government points at the grocery stores to fix their prices lower...
...or at the landlords to drop their rents...
...or at the builders to build more homes...
...it's actually their deficit spending and M2 money growth that is the cause of all of these issues.
We've said this before:
If you change the length of a metre constantly then an architect couldn't build a solid home.
If you change the value of money constantly then entrepreneurs can't build a solid economy.
We wrote a report titled, "Destruction of the Middle Class" about 7-8 years ago on exactly this trend.
And now we're here, the destruction is accelerating.
Throughout history this type of monetary policy, with exploding M2 growth, leaves the population with little savings, pointing the finger at the wrong issues and ultimately creates a social divide between the haves and the have-nots.
It's a shame. But here we are.
Back in the 1980s, one working adult in a household was enough to pay the bills.
Then by the 2000s, it clearly required two adults unless one had an exceptionally high income.
This decade, we'll expect to see many university and college grads moving back home for longer because it's going to take at least three.
People will point and blame and argue and somehow miss the problem.
If you are not outpacing the growth of M2 with your savings and your income you're going to be feeling pretty tight financially this decade.
Pay attention to this, it's not a trial run.
Many will be left behind financially. Sad, but true.
Since 1990 the Canadian M2 money supply has increased almost 5 times.
Have starting salaries for university grads and college grads increased 5 times since 1990?
My first job in the late 1990s after university was paying roughly $40K.
So that same entry-level job would need to be paying $200K to achieve the same purchasing power in the economy today.
Property prices have gone up about 5x since 1990s.
Why haven't incomes?
Why isn't this discussed more?
Instead we have a government that deficit spends and deficit spends some more and then prints money to pay for promises that it can't keep.
Here's the crazy news...we believe we're on the cusp of M2 accelerating its growth even further!
This brings us back to why we like things like rental properties.
The leverage we get by putting 20% down and then holding the properties for lengths of time is one of the very few ways the "average Canadian" can outrun the bankers and the government.
If a property goes up 10% over some years on a 20% downpayment you've made a 50% return.
So although no one dreams of being a landlord, it's one of the few ways we can still "get ahead". And investors will continue to be vilified over the next few years for being forced into buying real estate to protect their purchasing power. It's a funny time.
It's also why we like to save in something like Bitcoin. It can't be debased by the government like dollars can. It has a fixed supply and is out of the control of any government.
Do not dismiss Bitcoin without putting in some serious research.
The next big wave of fiat M2 growth will likely shock the world.
That brings us to this...
On Saturday October 14, 2023 we're hosting the Fall 2023 Your Life. Your Terms. Event.
We're going to cover the future of the economy, the future of jobs, Artificial Intelligence, inflation, deflation, interest rate trends, real estate developments in Canada, Florida rental properties and much more.
We're going to discuss when we believe the next wave of inflation hits and what the policy response will look like.
We'll discuss deflation trends vs. inflation trends and which is better for us but which one will likely win out this decade.
We'll discuss the future of real estate in Canada.
And we're going to discuss how you can plan today to live life on exactly our terms!
We have some amazing guest speakers flying in for this from both Vancouver and Florida.
You can check out all the details by visiting: www.YourLifeYourTermsEvent.com
or watch a quick sneak peek below:
Rock Star Inner Circle members get priority access to register for this event! There's no additional cost, it's included with your membership.
So if you're a member and you haven't yet registered, do so ASAP.
You can register yourself at www.YourLifeYourTermsEvent.com or reach out to the Membership team by email or phone and we'll handle the registration for you.
We're going to fill this event to capacity...don't wait!
Registration opens to the public sometime early next week, so keep an eye out for an email with details on how to purchase tickets.
And remember, we're absolutely positive people.
You can live life on your terms. It's possible. We know this to be true.
You just need to understand the rules of the money game so that you can position yourself properly. It's not complicated.
That's it for this, week!!
Welcome to September, everyone!
Tom & Nick
p.s. Remember, we're going to have a max capacity event on October 14, 2023. It will run from 8:30am to approx. 1:30pm. Rock Star Inner Circle members get priority access to this event! So if you're a member and you haven't yet registered, go here now to save your seat: www.YourLifeYourTermsEvent.com