The Forces that Will Impact the American Economy and Therefore, the Land Market in 2019 – Week 2

Interest Rates: October 1, 2018 was an extremely important day in the economic history of the world. That was the day that the European Central Bank (ECB) actually began to taper their Quantitative Easing (QE). The result was the commencement of turmoil in the global stock markets. That turmoil reflects that as the ECB joins the Fed in reducing QE, (in the U.S. that is allowing the assets on the balance sheet to bleed off, as well as rising interest rates) the impact on assets values around the globe is that they will decline. It is really quite simple. As the cost of money goes up, the rate of return investors demand also goes up, and that means that they can pay less for an investment. The talking heads reading scripts prepared by those who do not understand economics tried to make it a story about the trade wars, etc. But the fact is the driving force of the turmoil is that interest rates are rising, and that means that asset values will decline. The only question is how fast? My prediction – The Fed will either reduce interest rates by July 2019, or they will hold interest rates still for at least two years. That should allow asset values to stabilize and...

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The Forces that Will Impact the American Economy and Therefore, the Land Market in 2019 – Week 1

Real Economics: The 2017 Tax Act is such a positive economic force it is underpinning the American (and Global) economy along with the American financial markets. The recent turmoil reflects that as The Fed works to “normalize” the functioning of the American financial markets. Our financial markets would have collapsed recently except for the 2017 Tax Act.   Additionally, the tax cuts are actually paying for themselves. Steven Moore of the Heritage Foundation, in an article dated September 19, 2018, highlighted the fact that comparing the typically anti-Republican Congressional Budget Office’s (CBO) economic forecast issued in June of 2017, versus the one they issued in August of 2018, after the 2017 Tax Act showed a remarkable, positive difference.   A summary of his article is that the CBO estimated increased GDP over the next decade will be around $6 Trillion higher. Given the fact that about 18% of the GDP is collected as federal taxes, that represents a $1.1T increase in federal taxes.  The estimated cost of the corporate tax cut is about $500B.  Ignore the self-serving politicians and talking heads that spout venom about the first year’s results of the 2017 Tax Act.   Growing the American economy is the only positive possible solution to our economic challenges.  The 2017 Tax Law gives us that benefit.  The problem is not that taxes aren’t increasing, it is that our government spending is increasing...

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“South Garden Farm” – 180 Acres in Spotsylvania/Caroline

“South Garden Farm” at Thornburg! Former dairy farm including pastureland, mixed pine and hardwood woodland, 1.8 acre pond and much more! Call us today for further information!

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Election 2018 – What is the Impact on the Land Market? Week 5

January 2019: We are going to start 2019 with ten forecasts about what will happen in the upcoming new year. In the meantime, we at Grant Massie Land Company hope you and your family have a very Merry Christmas and a Happy New Year! We will do our part to make 2019 prosperous for you, our valued reader. Because land is the source of all wealth, a really good piece of land is the very best long-term asset one can hold in their...

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