My own terrible experience with simultaneous deflation AND inflation

I read a great post today about the impact high debt levels are having around the world. It’s from the Sovereign Man blog at sovereignman.com. I highly recommend that you subscribe. His perspective is unique and definitely thought provoking. I’m reposting it here with full attribution to the author, Simon Black….

simultaneous deflation AND inflation

September 10, 2015

Santiago, Chile

Yesterday was a pretty big day.

First (and perhaps most importantly) my post-Italy no carb detox came to an end. Hooray for that.

Second, I signed the papers and closed on a new apartment here in Santiago.

It’s a great time to be buying in Chile for anyone spending US dollars. The peso is weak, as is the economy. So asset prices are very cheap.

Simultaneously, by any objective metric, the US dollar is enormously overvalued. So I ‘sold’ what was overvalued and bought what was undervalued.

It was a great deal– it’s a spacious penthouse flat encompassing an entire floor in the nicest part of town, all for less than what a down payment would cost me in the US or Europe.

Hell, given the million-dollar price tag for some parking spots in New York City now, you could have several of my apartments for that much.