Summary
Phil gives three examples of why the real estate cycle must continue: (1) UAE offering wealthy expats permanent passports to sustain declining property prices — rules change to protect land values; (2) Peru’s Marxist candidate Castillo’s 80% mining tax — illustrates total ignorance of Economic Rent; the correct policy (tax the resource rent, not profits) is never considered; (3) Scottish land advertisement offering tax-exempt purchase of vast estates to English families who own most of Scotland. Record credit creation is underway — the cycle will be bigger than anything seen before.
Key Claims
- UAE offering permanent passports to wealthy expats to sustain property prices — classic cycle indicator. — confidence: high
- Peru’s nationalization threat vs. correct Georgist solution (tax the resource rent, not profits). — confidence: high
- Just 37-odd mostly English families own vast swathes of Scottish land — tax-exempt. — confidence: high
- The cycle’s height is determined by the extent of credit creation — currently the most ever seen. — confidence: high