Catherine Austin Fitts on the budget, gold and diggin' a well

[doom&gloom]

Re: Catherine Austin Fitts on the budget, gold and diggin' a well

The Fed is now where mortgages go to die. Thousands of mortgages on homes that do not exist or on homes that have more than one “first” mortgage are now going to the Fed to disappear. Thousands of multifamily and commercial mortgages will be bought up as well. As this happens, trillions of dollars that have been amassed offshore will be free to come back into the US to buy up and reposition land, farmland, residential and commercial real estate and other tangibles.


. . .

There are no deals on US farmland. If anything it is getting a bit pricey for returns. Residential looks like a good plays if you are in the rental space, and we are seeing massive purchases of large groups of homes in specific areas that can be rolled up and the rents... wait for it... securitized yet again. Demographics say that real estate, like most things that die in bubbles, may not be a good place to be if you are looking for above inflation returns. With low mortgage rates comes hig qualification rates and many cannot jump that hurdle.

Commercial is still not looking all that healthy.

If anything, I believe you will continue to see some PE expansion in the markets over time (key words are 'over time') to absorb some of this supposed excess liquididty. And if/when the inflation genie really starts to rear it's ugly head, you will see a massive fligt into metals.

If you dumped, say, $10mm into my lap today, I would deploy 40% into quality non-US farmland, 40% into gold, and the remainder into good worldwide dividend producing stox, especially in areas like telecom, energy and food staples. I don't think you could convince me to buy any bonds nowadays.