Double Dip Economy

Well, things are getting to the point where everyone that walks into the office is talking about double-dip.  People are depressed, and things are not so swell at all.  Speaking with my friends at Morgan Stanley, they are the only optimists - saying that it won't go down, but just stay flat in the doldrums.  Here are my observations:  


1.  Federal workers are paid much higher than their state and private counterparts
2.  Federal grants are the only hope for building projects at this point it seems.
3.  The super-strong yen is brining Japanese and other Asians to Hawaii in droves - keeping our local economy just above alive.
4.  This is the beginning of the "government bubble" perhaps - predicted by Gerald Celente 2 years ago.
5.  War is coming.... again.
6.  Although I am focusing on high-end residential clients, I am also helping non-profits as they apply for massive government funding.  Inouye's office is working very hard to help groups in Hawaii get grants and loans from Federal sources.  
7.  Meanwhile I am beginning to start a dialog with large Chinese interests who want to invest in Hawaii.  Small limited investment to them is huge for us.  And if things go well, who knows when the floodgates will burst... but they will.  As real estate prices continue to drop, our Asian cousins will come once again, to hawaii to do business, and buy up the state at firesale prices.  Get ready!


Beware that the 2nd dip of the double dip in the early 30's resulted in an 80% loss of wealth...  we are not even close to that kind of loss, yet.  And our monetary regulators are doing their best to figure this out.  My guess is that we could spiral down into a severe depression...  and if it is going to happen, the cards will show themselves within the first 2 weeks after Labor Day - which any new yorker knows is the Wall Street end of summer, and back to business.  


My clients come in and ask - what is there left to invest in?  My only answer now is silver, and land.  good, top-grade agricultural land.  Why?  because silver is highly used and does not have reserves.  And Agriculture because good agricultural land is very hard to come by - and it will be more in demand as we move toward depression and food shortages.   Remember now, top-grade doesn't mean the land is located in a gentlemen's farm community.  Top grade is the quality of soil on the property.  Good nutrient-rich soil fed by a natural water-shed... wow - that will be an investment!