Our typical Midwestern family is now scattered across the U.S. Like most families we get together for major life events or sometimes just because we like each other. We share some meals. We talk about old times. We play games. We laugh a lot. A few summers ago this scenario played itself out during my elderly father’s birthday. While playing a comedic board game, one of my brothers made an off-the-cuff remark about how liberals would not enjoy the game because they have absolutely no sense of humor. This got a big chuckle from the others because it’s the truth, right? Another brother got a gleam in his eye and replied, “Yes, but a game ABOUT liberals would be hilarious to the rest of us.” And with that the idea for our party game was born.

Most humor has a basis in fact. That is what makes it relatable to people and therefore funny. The best stand-up comedians and humorists take everyday situations that most in their audience have experienced and weave in some dynamic storytelling and a few exaggerated outcomes. The results are often a combination of guffaws, giggles and uproarious laughter.

How many of you remember the Dean Martin roasts from the 70s? I was a young child then, but I still recall that the nights when these specials aired were some of my favorites. My large family gathered around the tv, filled with anticipation of the belly laughs that were sure to come. My typically straight-laced parents actually let me stay up later than my normal bedtime to watch with them. Sitting among my parents and siblings as they erupted in laughter along with the Hollywood elite was a wonderful feeling. You can still see clips of these shows late at night on some cable networks. It’s astonishing now to watch the celebrities with lit cigarettes in hand, taking turns at insulting each other by poking fun at being black, over-weight, hooked on booze, unattractive, adulterous…the list goes on and on. Most quips were either self-deprecating or told in good fun among friends. Everyone participating had tears in their eyes, not because they were offended, but because they were laughing so hard at themselves that they were crying! Compare that with what the reaction would be in 2018. These jokes today would not only be criticized as racist, fat-shaming, unsympathetic and misogynist, but these beloved stars would be ostracized.

Far too often in today’s world of the politically correct and perpetually offended, attempts at humor are squashed or shamed. Every word is dissected by the self-appointed thought police. Every joke or story is scrubbed for an “ist” or a “phobia” that may reveal the author’s bias. Many high-profile comedians are avoiding gigs at college campuses altogether because of student hypersensitivity. Jerry Seinfeld, Larry the Cable Guy and Chris Rock are three examples. Others have to scale back content or risk being dragged through the social media mud and publicly forced to apologize. “I don’t play colleges, but I hear a lot of people tell me, ‘They’re so PC,’” Seinfeld famously told ESPN’s Colin Cowherd in 2015. “They just want to use these words: ‘That’s racist’; ‘That’s sexist’; ‘That’s prejudiced.’ … They don’t know what the hell they’re talking about.”

Larry the Cable Guy, in an interview with “Sixty Minutes,” agreed that political correctness had gone way too far. He stated, “It’s gotten way outta control. You know, I really think we’re at a point in this country where people really need to take the thumb outta their mouth and grow up a little bit and realize there are a lot bigger problems out there than what a comedian did a joke about.”

The quote “laughter is the best medicine” is not just a cute saying. Humor is therapeutic. Laughing feels good. It’s contagious. It’s necessary for living a happy life. When my brothers and I wrote the game cards for “Right On!” we used real life situations that people often find themselves in or hear about on cable news shows. Then we added a dose of wit, a bit of absurdity and a dash of snark. The result is a very funny game that mocks the mainstream media, political correctness and liberalism run amok. Our hope is that it gets a point across while making people laugh. Long live comedy!

Karen Hoffman is a founding director of Right On Enterprises LLC. Check out “Right On!-The Conservative Party Game” at www.rightongame.com. Or better yet, stop by and see us in the Exhibit Hall at Freedomfest 2018 July 11-14 and play along. We guarantee you will chuckle. For information about FreedomFest, “the world’s largest gathering of free minds,” go to www.freedomfest.com or call 1-855-850-3733 ext 202.

A paradigm shift is taking place all over the US due to a combination of societal, economic, demographic, and regulatory factors. This shift is a result of the slow, unfortunate realization that it is all but impossible for a substantial portion of the population to own a home, something that was previously a staple of the American dream.

As with any major economic change, a variety of causes led to this phenomenon, but in order to fully understand the topic, it is necessary to consider a little-known fact about the post-World War II era.

Returning Veterans Come Home to Housing Crisis

After World War II, millions of veterans found themselves coming home to several challenges, one of the most prominent of which was having access to affordable housing. The combination of the Great Depression’s effect on the economy and the fact that millions of potential homebuilders were shipped overseas created a significant shortage of housing upon the war’s end and the troops’ return. Because of this shortage, Congress enacted the Veteran Emergency Housing Act of 1946, which called for the building of 850,000 prefabricated houses (mobile homes) in less than two years.

This was the first time mobile homes were built in the US at scale, and their popularity grew quickly. Originally, mobile homes were positioned in parks located in the suburbs, which were thought of as upscale communities, so moving away from the cities wasn’t a hard sell.

However, the government’s action of both sending millions of able-bodied men away from productive jobs as well as its decision to direct funding towards tasks which the market may or may not have provided on its own has created a series of unforeseen outcomes

Social Security and Demographics

More than 10,000 baby boomers are entering the age of retirement each year, and a significant number of them have little or no little savings, leaving them primarily reliant on Social Security as a source of income. Even in its current form, this is not a financially sustainable solution, as the average Social Security check is about $1,300 per month and the average two bedroom apartment rents for about $1,250 per month.

Furthermore, the Social Security system is facing significant solvency problems as the ratio of workers to retirees decreased from 40-to-1 in 1970 to 3-1 in 1980. Additionally, there is a complete lack of transparency as to the amount of funds available for the program, which, based on the government’s track record, means the funds have been depleted.

The mathematical reality is that the Social Security system is in for a massive default, which will be effectuated by reducing benefits, increasing the age at which recipients can receive benefits, raising taxes on Social Security distributions, and inflation. All of these outcomes will continue to increase demand for affordable housing in the US.

Supply, Demand, and Regulatory Burden

The demographic challenges mentioned above are playing an important role, but the truth is, there is already a considerable demand for affordable housing in the US. In fact, there are more than 20,000,000 people living in mobile homes as of 2018. Additionally, income data shows that more than 51% of the wage earners in the US are making less than $30,000 per year and 38% are making less than $20,000 per year. This income data and the demographic shifts that are taking place will both further increase demand for affordable housing in the US.

Unfortunately for those seeking low-cost housing, the positive connotations associated with mobile home parks (MHPs) have changed significantly. Since the 1980s, cities and municipal governments have implemented zoning restrictions and regulatory hurdles that have completely eliminated the construction of new MHPs. In fact, the number of mobile home parks actually decreases each year because municipalities consistently rezone, redevelop, or condemn poorly operated mobile home parks across the US.

This phenomenon is incredibly favorable for investors. The combination of the demographics and the income figures with the regulatory burdens for mobile home park development has resulted an ever-increasing demand and an ever-decreasing supply. This is a perfect situation for those who are interested in considering an alterative investment vehicle to provide them with lucrative returns.

Pride of Ownership & Stability of Tenant Base

One of the keys to owning investment real estate is to get the tenants to treat the property like they own it; with mobile home parks, they actually do. The most lucrative and reliable strategy for investing in MHPs is to purchase the park itself and then rent the lots of the park to tenants who own their mobile homes. Tenants pay “lot rent” for the space in the park, but the home itself belongs  to the tenants.

This strategy comes with several benefits to investors. Tenants who own their own home are much more likely to have pride of ownership, keep the property in good standing, and have a longer duration of stay. For example, the typical tenant duration in an apartment complex is usually less than 2 years, while most mobile home parks tenant duration averages more than 5 years. This lack of turnover significantly decreases downtime for rental income as well as advertising costs associated with marketing to new tenants.

It is worth mentioning that almost all of the horror stories associated with MHP investing are related to parks that rentthe mobile homes to tenants, rather than have the tenants own the home.

Mobile Homes Are Not Mobile

Not only are the MHP tenants much more likely to have longer stays because they have a “home-owner” mentality, but also moving a mobile home doesn’t make sense economically. The value of most mobile homes is between $3,000-$5,000 and the cost to move one is approximately $3,000. Because of this, tenants are far less likely to move out of the park, further increasing their tenant duration. Additionally, they are much less likely to move during rental increases, which can further improve returns for investors.

Fragmented Business Filled with Inexperienced Mom-and-Pop Owners

Because major institutional firms have stayed away from the asset class, the mobile home park business is still considerably fragmented, with inexperienced mom-and-pop owners owning the vast majority of the MHPs in the US. Many of these inexperienced managers are single-asset owners and therefore do not have the systems in place to optimally run the property. It is quite common to find parks that are undercharging for rent by more than 20% , overpaying the manager, failing to charge late fees, and so on. Experienced owners can easily identify these opportunities and, because MHPs operate on monthly leases, implement changes quite quickly compared to other commercial real estate assets.

The Perfect Storm

The government’s efforts to solve the affordable housing crisis have created catastrophic results, as well as an interesting investment opportunity.

Here is a quick review…

1. The government displaces millions of able-bodied men, resulting in a housing shortage.
2. In an attempt to solve the housing shortage, the government directs the creation of almost one million mobile homes.
3. The government creates the Social Security system which millions rely on as a source of income, then proceeds to deplete it to insolvency, further increasing demand for mobile home parks.
4. The government bans the development of additional mobile home parks, worsening the shortage of affordable housing.

These factors, as well as the many unique benefits of investing in mobile home parks, have created the perfect storm from an investor’s perspective.

Are you positioned to take advantage of the investment opportunity of a lifetime?

Create an account with Cash Flow Connections to learn more.

Hunter Thompson is the Founder of Cash Flow Connections, a private equity firm that helps accredited investors achieve diversification through recession resistant real estate. Hunter will be speaking at FreedomFest at the Paris Resort Las Vegas, July 11-14. For tickets and information, go to www.freedomfest.com or call 1-855-850-3733 ext. 202.

 

“Three can keep a secret…if two are dead.” — Poor Richard’s Almanac

Last week, the entire high-tech sector fell out of bed after new reports revealed that private companies were selling– and politicians were buying– the personal information of 50 million Facebook users, prompting government regulation of social media.

However, the Facebook scandal is just the tip of the iceberg. Apple’s iPhone and Samsung’s Galaxy know your every move, even when your cellphone is turned off. And now Amazon and Google have carried invasion to its zenith with the acquisitions of companies making smart doorbells, thermostats and other home security devices. As one analyst put it, “Now they can see your door and hear what’s going on in your house. They can tailor marketing to your consumption patterns. They can fine-tune delivery to catch you when you’re home. In theory they can even let themselves in.” Scary!

CNBC’s Rick Santelli, father of the Tea Party movement, told me this is a “biggie” and could derail the tech and social media industry for some time as government intervenes to start regulating Amazon, Facebook, Apple and other tech companies. Investors, beware!

Action to take: “Big Brother Surveillance Panel” has just been added to our “Emergency Summit” at FreedomFest. We will have a special session with top security and privacy experts: “CAN YOU KEEP A SECRET? How Business, Government and Even Your Doctor are Monitoring You and Mining Your Data, and How You Can Once Again be a PRIVATE Citizen.” Join us at www.freedomfest.com.

Normally, we record all sessions at FreedomFest, but upon request of many of our speakers, we will turn off the tape recording so they can speak freely. You must be there in person to hear it all.

Why meet at FreedomFest? Steve Forbes says it best: “FreedomFest is where the best ideas and strategies are fleshed out.” That’s exactly what we plan to do at this special meeting — determine the best strategies to protect ourselves from the unfolding privacy crisis.

 Mark Skousen is the founder and producer of FreedomFest and the editor-in-chief of Mark Skousen’s “Forecasts & Strategies,” now in its 38th year. He is a Presidential Fellow in economics at Chapman University. Go to www.freedomfest.com, or call toll-free 1-855-850-3733, ext. 202 to register.

Special Alert! We are suddenly headed down a dangerous road that could spell disaster for our country and your investments.

The turning point came almost overnight.

Based on my sources in Washington, the Trump administration is determined to engage in a confrontation with China and other trading nations that could undermine the whole global free-market economy, with grave political implications.

“It’s bad,” I was told yesterday by one of my confidantes in the White House. “The President is determined to double down on its fight with China, in an attempt to bring them to the bargaining table.”

Instead, it may ignite a “chain reaction” and a global trade war where everyone loses, including the United States. Higher prices, another recession, even war could be on the horizon….

I was told that Trump is still being unduly influenced by Peter Navarro, author of “Death by China,” and the most dangerous anti-trade protectionist in the White House since the Hoover days.

On top of that, yesterday Trump named John Bolton, a hawk who is known for taking a hard line against Russia and advocating military force against North Korea and Iran, as his national security advisor. This could mean war sometime in the near future.

In short, we are witnessing the dark side of the imperial Trump.

No wonder the DOW tanked 700 points yesterday, signaling what could be the end of the bull market on Wall Street.

The first year of the Trump Administration had mostly positive results, with much needed tax and regulatory relief for American businesses and workers. The stock market soared on the policy changes.

But 2018, an election year, is turning out to be an entirely different matter under this mercurial president.

President Trump is now reversing course and stubbornly refusing to back down.

It’s not only the prospect of a major trade war that has investors and citizens running scared. It’s his new Fed chairman, Jerome Powell, who is aggressively raising interest rates. Mortgage rates are now approaching 5%, the highest in years, threatening to cut off a growing real estate market.

At the same time, Trump and the Republican leaders on Capitol Hill are pushing through a gigantic $1.3 trillion federal budget that is bankrupting the nation. In a period that economists regard as full employment, we should be running a surplus. Instead, the deficit is expected to exceed $1 trillion next year, ballooning our national debt to $22 trillion or more. With interest rates rising fast, this spells doom for our economic sanity.

In short, the Trump White House is in chaos, as reflected in the numerous firings and resignations – more than any other administration in recent history.

Emergency “Economic Summit” at FreedomFest

For these reasons, we have decided to hold an emergency “Global Economic Summit” at FreedomFest, July 11-14, at the Paris Convention Space, Paris Resort. All FreedomFest attendees will be invited to attend this special private meeting.

Normally we record all sessions at FreedomFest, but upon request of many of our speakers, we will turn off the tape recording so they can speak freely. You must be there in person to hear it all.

Here are the experts and insiders we have invited to present:

• Steve Moore, chief economist at the Heritage Foundation, and a Trump insider who worked closely with Larry Kudlow, the new economic czar, to push through the Tax Cut and Job Act of 2017. Can Kudlow make a difference and keep Trump from blundering further? Moore has the answers.

• Grover Norquist, president of the Americans for Tax Reform, whom CNN calls “the most powerful man in Washington.” Grover was instrumental in passing the tax cut.What are he and ATR doing to reverse the tide of big government? Grover will hold his famous by-invitation-only “Wednesday Meeting” on July 11 to give us an update on how we can be instrumental in winning this important fight.

• George Will, political analyst for MSNBC, and former analyst for ABC and Fox News; Ross Douthat, conservative columnist for the New York Times; and Larry Elder, libertarian talk show host, will unmask the media’s powerful role in the growing crisis.

• Steve Forbes and John Mackey, co-ambassadors of FreedomFest, will assess the trade war’s effect on business in North America, Asia, Europe, and other nations, along with former Carl’s Jr CEO Andy Puzder.

• Rich Lowry, editor-in-chief of National Review, and political columnists John Fund and Deneen Borelli will assess the impact of the Trump agenda on the 2018 elections.

• Judge Andrew Napolitano, Fox News legal analyst, will cover the growing legal debates inside the White House: Will they derail the Trump agenda?

• Roberto Salinas, president of the Mexican Business Forum, on the anti-Trump backlash in Latin America that is fomenting political and military unrest south of the border; and Barbara Kolm, president of the Austrian Economics Center, will report on the European reaction to Trump’s trade war and the “America First” policy.

• Jim Rogers, Doug Casey, Keith Fitz-Gerald, Peter Schiff, Robert Kiyosaki, Alex Green, and a host of other financial experts will prepare you for the impact of the new Trump and Federal Reserve policies on your investments. FreedomFest is the only liberty conference with a full three-day investment seminar inside it. Why? Because financial freedom is essential to personal freedom. We want you to have both.

Why FreedomFest? Steve Forbes says it best: “FreedomFest is where the best ideas and strategies are fleshed out.” That’s exactly what we plan to do at this special meeting – determine the best strategies to protect ourselves and our money from the unfolding Trump crisis.

Don’t miss your chance at a seat at this special emergency meeting. Registered Yet? Click here or call 855-850-3733 ext 202 and let our friendly staff help you secure your spot. (Early bird ends March 31, save $200 now.)

New Jersey State Senate President Steve Sweeney complained to Neil Cavuto in a recent interview that “this new [federal] tax bill is going to hurt New Jersey in a big way.” Acknowledging that “one percent of New Jersey residents pay 42% of the taxes,” he warned, “We have to push the pause button on the millionaires tax” to keep millionaire residents from fleeing the state—and taking their wealth with them. He was referring specifically to the elimination of state and local taxes as a deduction from federal income taxes.

It’s about time they figured this out, because the jig is up.

The sneaky, dirty little truth about the deductibility of state and local taxes is this: High-taxing, high-spending states such as New Jersey, Minnesota, Oregon, New York, and California have been fleecing taxpayers in other states for years. How? By taking the federal taxes paid by Nevadans, Texans, Floridians, etc., and using it to refund their own state and local taxes. They could get away with their high tax rates (as high as 13%!) in part because taxes were deductible. In essence, federal taxes have been funneled into the state and local coffers of high-tax states for years.

Let’s look at a simplified, hypothetical example. Let’s suppose Floridian John Smith has an income of $2,000,000 and is in the 39% federal tax bracket, with an effective rate of about 34%. (We’re talking about the 1% here, the ones who pay 42% of the taxes, according to Sweeney.) He owes the IRS about $672,000.  (Ugh! That’s a huge amount of money!) His cousin, Jane Doe, lives in California and earns exactly the same amount of money. But she pays 13.3% income tax to California, and the real estate taxes on her modest $7 million California home are $25,000 higher than John’s property taxes. Until now, she has been able to deduct those state and local taxes from her net income, reducing her taxable income to $1,709,000. Her bill to the IRS is $615,000, or $57,000 less than John’s. In essence, taxpayers in low-tax-rate states have been carrying the big spenders in the high-tax states for way too long.

For Steve Sweeney, Jerry Brown, and legislators in other high-tax states, the game is over. New Jersey’s newly elected Governor Phil Murphy campaigned heavily to reinstate the “millionaires’ surtax” imposed on the wealthiest citizens—a tax that former Governor Chris Christie had lifted. Now Senate President Sweeney is aghast to realize that the Golden Geese can move to friendlier waters if too many of their eggs are going to be confiscated. “We can’t afford to lose thousands of people who make up a large piece of our tax base,” he admitted to Cavuto. “We have to rethink this millionaire’s tax, because they can leave.”

What a novel realization—people have choices! They can move! They can take their money with them! The besmirched 1% are finally being recognized as valuable. They run businesses, hire employees, buy homes, and pay taxes. Lots of taxes. Even Jerry Brown has suggested that California might have to rethink its budget and pull back on spending because of the new tax bill.

Most Americans are unhappy about losing the deductibility of state, local, and property taxes. At first glance, I was one of them. Why should we pay income taxes on the money we already paid in taxes? Is it “income” if you never even see it in your paycheck? But legislators of high-tax states have bilked the residents of more budget-conscious states long enough. Their sneaky, dirty little secret is out. Losing the deductibility of state and local taxes is putting pressure on legislators to be more frugal and use tax revenues more effectively. Until we can eliminate income taxes completely, that’s a step in the right direction.

Jo Ann Skousen is the founding director of the Anthem Libertarian Film Festival and the co-producer of FreedomFest, “the world’s largest gathering of free minds.” We’ll be talking about tax policy at FreedomFest this July at the Paris Resort, Las Vegas. For information go to www.freedomfest.com or call 1855-850-3733 ext 202.

 

It’s awards season again, that glittery time when Hollywood elites gather to praise each other’s work, comment on each other’s clothing, and make political statements we mere mortals in suburbia couldn’t possibly understand without the help of their stunning insights.

The circuit began with the Golden Globes on January 8 and will culminate in the awarding of the Oscars on March 4. At the Globes, all the gals showed up in sexy black evening gowns to show their solidarity with women who have been mistreated, abused, harassed, or misunderstood. It made me think of junior high: “What are you going to wear?” “I don’t know, what are you going to wear?” “Muffy Sinclair is wearing plaid overalls and knee socks.” “Ooh! Me too! Me too!” Suddenly the elite of the elite were controlling what all the women would wear to the Globes. And not one dared to be different.

Regardless of how I feel about their particular issue, I find it curiously troubling that these powerful women stood up for the power to speak out by controlling what other women were going to wear. Any woman who had chosen to express her own voice by wearing red or blue or white, no matter what the reason, would have been castigated by the press and by her peers. Just as women knew they had to play the Weinstein game if they wanted a role in Hollywood, they knew they had to wear a black dress if they wanted to fit in. Nothing has changed in Hollywood. You either toe the party line or move into another career.

Let’s face it: many of these seasoned women in their glitzy black dresses had to have known all about the Hollywood casting couches long before Harvey Weinstein’s shame became public. They endured it to get ahead, and then kept quiet about it when other women had to endure it. Sorority hazing at its worst. Not until it became public and, might I say, fashionable, did they join in with their #MeToo stories. Until then, they dared not risk the careers– for which they had paid dearly– by speaking out against Weinstein and his ilk. In fact, they embraced him. They played the game. Even after they were rich enough and famous enough and awarded enough that they didn’t need to. Now, to assuage their guilt and cover their shame, they’re shouting the loudest and pointing the longest fingers. And pressuring other women to play along, like it or not. It’s okay to point a finger at the men, but don’t dare include the powerful women who helped them get away with it.

We’ll all hide together in our black dresses.

Jo Ann Skousen is the founding director of the Anthem Libertarian Film Festival, where she wears brightly colored dresses while screening great movies. The film festival is included in your ticket to FreedomFest, “the world’s largest gathering of free minds.” For information about submitting your film or attending the festivals, go to www.anthemfilmfestival.com