INFLATION OR DEFLATION?                   GP 327            12/74
--What's Ahead?--And What to Do About It!

         1. THE STRANGE THING THAT'S HAPPENING IS THAT THE INFLATION IS PICKING UP SPEED RIGHT ALONG WITH THE DEPRESSION, just the OPPOSITE of what happened in the Great Depression. This time, they're not only going to have a BIG DEPRESSION, or ECONOMIC COLLAPSE, which in days past benefited the big MONEY boys, but it is also going to bring about the collapse of BIG INVESTORS, GOVERNMENTS, EVERYBODY! It's going to take the MONEY down with it!--AND CAPITALISM!
         2. SO WHAT IS IT GOING TO DO TO THE SMALL LANDOWNER, small home owner, small business owner & the payment makers? Well, the ACTUAL VALUE of the payments is declining so it'll actually make it EASIER for them to make their payments.--If they have anything to make them with! The people that OWN property are going to be better off than the people RENTING, because unless the governments control the rents, the rents are going to rise right along with the prices. Whereas, the people who are BUYING or LEASING on a LONG term contract are actually going to be paying LESS & LESS for their property because of the DECREASING value of the MONEY.
         3. IF THE PEOPLE ARE GETTING ANY MONEY AT ALL guaranteed by governments, they'll be able to meet the payments even more easily because of the inflation. It was always our policy before, because of the experience of the previous Depression when prices crashed along with the Depression & the value of everything went down, that it didn't pay to BUY but rather it paid to RENT, because rents were DOWN in DEFLATION.
         4. BUT THIS TIME THE PRICES ARE NOT GOING TO CRASH BUT THEY'RE GOING TO EXPLODE & CAUSE THE MONETARY SYSTEM TO CRASH INSTEAD. That's the difference between the INFLATION OF TODAY & the DEFLATION of yesterday's Depression. The fellow who has BOUGHT or is BUYING on a contract is going to be benefited because he'll ALREADY have it, & its VALUE will skyrocket. If he has any income at all to keep up his payments, or especially if he's already got it paid for, then this is a totally different situation from the last Depression. This time they've guaranteed wages, & prices are going to go up as the value of money goes down, just as the Lord has shown us.
         5. SO IF YOU'RE GOING TO BUY ANYTHING, THE TIME IS NOW & THE SOONER THE BETTER. That's one reason there is a boom of land & property buying right now. (1974) Smart investors know that's where they can put their money & it'll be fairly SAFE & they'll have something to show for it. Whereas, the value of everything else which has a MONETARY price on it, like stocks, bonds, cash etc. will actually DECLINE, just like they're going down now. Their REAL VALUE is SHRINKING because of the INFLATIONARY EXPLOSION.
         6. IF YOU'RE ACTUALLY GOING TO USE THE LAND FOR SOMETHING TO LIVE IN OR ON, ITS VALUE IS GOING TO INCREASE ALONG WITH ITS PRICE. So it is better to BUY NOW because both PRICES & RENTS are going to go UP. The only safe thing to do is have it already bought. At the end of our present contracts what are they going to be worth? If you're a farmer & know how to grow food, then a farm is the best place to buy so you have food along with your place to live. That's even better than gold because you can't eat gold!
         7. BUYING WILL SAVE, AT LEAST FOR THE TIME BEING. But, of course, under the new World order which will arise there'll probably be no private ownership & there'll be a whole new system. So this is just a TEMPORARY STOPGAP. The point is that if you can buy something now on low & long enough terms so that your payments will be about what RENTS are now, then you are protected against the RISE in rents because your payments will continue to be the SAME amount.
         8. BUY PROPERTIES ON LONG TERMS WITH LOW PAYMENTS, & I believe they'll be protected for the time being because I think RENTS will SKYROCKET along with all other COSTS & PRICES & WAGES. Of course, many things are going to become scarce & almost impossible to buy soon, so the same is true of any other MAJOR purchases: If you can afford to BUY it outright right NOW, or better yet on very LONG TERM PAYMENTS so you don't have to put out all that CASH right now, then I'd advise you to buy it NOW.
         9. THE IDEA OF BUYING NOW ON LONG RENT-LIKE TERMS OR TODAY'S LOW PRICES IS SIMPLY TO GUARANTEE PROTECTION AGAINST A CONTINUED RISE IN RENTS & assure low payments for your property, for those who are able to do so. However I wouldn't necessarily recommend this for all Family members, for we move around too much & wear out our welcome too fast in place after place!--We have to stay as mobile as we can. But for OTHERS, friends, relatives & the little man & labourer, I'd say BUY NOW on LONG TERMS & PAY LATER if you can, until the new World government comes along & relieves you of EVERYTHING!--Only JESUS SAVES!

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