Royal’s Predictions 2012 Better Late Than Never
May 29, 2012
Royal’s Predictions 2012 Better Late Than Never
Normally, I do a prediction for the coming year in January and I have been doing one for years, but this year for some reason I did not do one. Gee, could it be I just had a senior moment or maybe it was that my time wrap wristwatch wasn’t set to the correct galactic time. To be honest, I never thought anyone paid much attention to my use of tea leaves, crystal balls, computer pixels and a twirling Martian beanie, but I keep getting these little email notes. “Did you do a prediction this year? I can’t find my copy. Would you please send it.”
Okay, that tells me the economy is picking up. I mean, why else would anyone be looking for predictions if not to make an investment. Remember, in my foggy predictions last year I said the money would start showing about now! That’s right, 75% of that $900 billion dollars wasn’t spent, “No shovel ready jobs.” It is now being spent as planned to assure Obama the election, but here my prediction. Obama will lose. It will be really close but Obama loses. He is just too much of a socialist for the Independents and I should know because “I are one.” No, I am not a Republican, I am a registered Independent. Also, I saw a straw poll that said 60% of the people believe the country is headed in the wrong direction. What’s a straw poll? That’s where I look down a row of wheat and see which way its pointing in the Midwest.
There is also coming the biggest housing boom in American history. It is going to hit like a tornado and all those bank foreclosures are going to disappear almost overnight. First, we have not been building homes for almost ten years now, so we have a lot of pent-up demand. The population did not stopped growing. California has grown by 3 million since the housing recession started but that is only part of the tidal wave coming. There are also the echo boomers, those people born after the baby boomers. Here is the difference, baby boomers got married and started families at age 18 to 22, but echo boomers pushed that back by about 7 years to 25 to 29 so they have also been out of the market but will be coming in at the rate of 4.5 million a year! Starting now.
There are two more important factors, historically low interest rates and affordability. Currently in California about 60% can afford to buy, back in 2007 it was only 10%. The price of housing has dropped, if you haven’t noticed. It might be a good time call your local Realtor and to check into house investing. In North Dakota, where the oil boom is booming, a closet will rent for a thousand bucks a month.
Lock in those long term historically low fixed rates mortgages for 30 years because once the housing boom starts in the rest of the country, interest rates are also going to explode in an effort to keep down inflation. In the last three years, the US has been printing forty cents of every dollar spent. The inflation rate has already been set, the only question is when does it hit with full force? After they spend the money! I don’t care who they elect, inflation will take off some time after the election. Like I said, all that money is now being spent. Look for gasoline to continue to drop until election, then it will be back to matching inflation. The same for gold. These drops are just election year illusions. Take advantage of them while you can. Take a road trip and pan for gold. Have some fun.
Europe: the Euro Zone has set up a non-workable government financially. It will not last. Margret Thatcher said it best, “The problem with socialism is at some point you run out of other peoples money to spend.” In this case it is other country’s money… mostly Germany’s. Each country will demand the right to print its own currency once again. A breakup will happen. That will be the only solution after they try massive bail outs repeatedly and then finally give up. Start planning your European vacation because Europe will once again be a cheap place to visit. This could happen quickly or take a few years. Politicians hate to give up power.
I did get it wrong about Sarah Palin running for President in 2012, but then I didn’t know they would pay her more to just show up at events than to actually run for President.
Summary: More inflation, housing boom, debt monetization will have been completed and all that worthless paper will disappear. Big Banks are already shutting down their committees to handle bad debt. Good times are coming or at least it will feel that way if you have assets that appreciate with inflation. California will not fall off into the ocean but may sink with rising debt. Mitt Romney will be our next president.
Okay, I will get out of the bubble bath now but before I do one last prediction. The existence of mermaids will be confirmed. If you don’t believe this prediction, you have not been watching Animal Planet.
This has been the unintended consequences of a senior moment.
Warning: These predictions are made just for fun and are not to be confused for investment advice or anything else for that matter because they are simply my placebo reactors passing neurons to another neuron while wearing a beanie in an imaginary nerve impulse time warp, also know as a Thought Provocateur.
Other Goodies (Father’s Day is coming up June 17th)
Eric’s New Book: Fearless Click Here Save 41%
Have you ordered your personal copies of the Molly Songs? If not be sure to check them out on iTunes.
Photo of McGee by Carlos Royal http://www.cafepress.com/mollytheowl.628020845
Molly Watchers E-Cookbook http://mollytheowlbooks.com/store/books-bookmarks/molly-watchers-e-cookbook.html
2012 Calendar www.cafepress.com/mollytheowl
Austin’s Designs (Your purchases help him pay for his schooling) http://www.cafepress.com/austin4media