The 2010 Index of Economic Freedom lowers the ranking of the United States to eighth out of 179 nations — behind Canada! A year ago, it ranked sixth, ahead of Canada.

When sizing up a potential real estate location, I always look for one of four strategies that indicate a potential rise in property values:

• A new, emerging middle class
• The Path of Progress
• An influx of foreign buyers
• Distressed or crisis opportunities

One of my hottest locations for real estate opportunities right now is Fortaleza, on Brazil’s northeast coast. I identified two strategies at play when I first scouted this city more than two years ago, and they still hold true today.

A new, emerging middle class means new consumers. These new consumers buy cappuccinos, refrigerators, cars, vacations, new homes and second homes. This started happening in the US in the 1950s.

We can profit by owning the condo this new middle class lives or vacations in, or the building that houses the coffee shop where they sip coffee.

Brazil has become a middle-class country. Car sales were up 17.9% for the first quarter of this year. Domestic budget airlines are growing exponentially, as this new middle class takes flight to various business and vacation destinations. In the first eight months of this year, 1.95 million new jobs were created – double the figure for the same period last year. The latest forecast for GDP growth this year is 7.3%.

Fortaleza is Brazil’s biggest domestic tourism destination. Brazilians come here to relax, sip cocktails by the beach, enjoy an evening meal and some entertainment. Passenger traffic at Fortaleza airport increased 23% year-on-year to the end of August 2010, and cargo traffic…Read more…

On a recent trip to Omaha, Neb., I found a note prominently displayed in my hotel room warning of the possibility of “extreme weather” including “tornadic activity.” The clunky euphemism was no doubt meant to soften or obscure what they were obliged to communicate: There may be a tornado, look out.

That’s what’s going on nationally. Tornadoes are tearing up the political landscape.

Government Tax Receipts Plunge!

Solution?

A  Big Raise for Government Employees …… ….. & an Even Bigger Raise in Your Taxes.

Yup, that’ll work……

In January, Miami-Dade County Manager George Burgess wrote commissioners that he expected property values to plummet 12 percent, a record drop that would significantly reduce government revenues.

Yet, Burgess — along with the county mayor and commissioners — subsequently agreed to give county employees salary and benefit increases totaling $132 million.

Now, to help pay for it, Burgess is asking commissioners to support a tax rate increase on homeowners across Greater Miami that will bring in an additional $178 million in revenue.

As the final budget hearing got under way at 5:14 p.m. [September 23, 2010], county commissioners were staring at what many expected to be a long and contentious night to finalize a new budget and property tax rate.

At the outset, 179 people had signed up to speak at the public hearing and a long line of others waited to sign up in the lobby of County Hall.

A grassroots group of property owners gathered in the ground floor of County Hall shouting “No more taxes” and waving signs opposing the proposed tax rate hike. “We Pay Taxes For Services. Not For Bureaucracy,” read another sign.

A few feet away, police officers gathered in force to support the proposed budget. “We’ve got our contract already. This is not about us…. This is about the residents of the community. We want them to be safe,” said John Rivera, president of the Dade County Police Benevolent Association.

One police officer estimated about 300 police officers and 200 corrections officer had turned out for the session.

Across the hall was an equally strong turnout of county fire-rescue workers in pink T-shirts.

The political stakes spiraled higher Wednesday, when Miami businessman Norman Braman — who has a history of bankrolling fights against county government — declared his intention to support and finance a recall campaign against the mayor and any commissioners who support a tax rate increase.

….read more HERE

Title “The World is Being Run by Crazy People” borrowed from Kate McMillan’s Blog