Single-family homes build wealth because you repay a fixed-rate mortgage with dollars that lose value to inflation. A $1 trillion debt shrinks by $100 billion in real value at 10% inflation, which is why borrowers win when prices rise.
I think single family homes are the best thing because one of the things the hidden wealth creators is the mortgage asset, even if it's not one of those super cheap mortgages, but you get to pay the debt back in cheaper dollars. Over time, the debt is inflated away. And so that's really the business plan our government has for its debt. If we owe $1 trillion to China and we have 10% inflation, either in one year or two years, three years, doesn't matter the time, right? But we have 10% inflation. We just got a $100 billion discount on the debt.
