It looks like Lebron James is being advised to sign a 3 year deal because of hyper inflation that ought to be hitting America very soon. At least 5 NBA teams have been waiting for Lebron James to sign with them; New Jersey, New York, Chicago, Miami, or Cleveland. Is it just about the money?
As September arrives the National Debt of America will have doubled in only 7 years. The former doubling of the American debt took 13 years. The National Inflation Association is advising Lebron James to sign with Cleveland, where he could earn more money, but he ought to re-invest his earnings in gold and silver. Now, Lebron can sign with who ever he wants to sign with. Lebron James does intend to become a $Billionaire.
National Inflation Association NIA
Subject: Why Lebron James to Consider 3-Year Contract!
Date: Thu, July 8, 2010
This is an interesting take on Lebron James, who wants to become a billionaire, and how he could by signing a shorter contract and investing in gold and silver!
*NIA Urges Lebron James to Consider 3-Year Contract*
The National Inflation Association today urged Lebron James to consider signing a three-year contract with the NBA team of his choice, instead of a five-to-six year contract, due to the threat of hyperinflation occurring in the U.S. during the next five years. With all of the talk in the mainstream media about if Lebron James will sign with the
Cleveland Cavaliers, Miami Heat, New York Knicks, Chicago Bulls, or New Jersey Nets, nobody is talking about the threat of hyperinflation and what effect it could have on the real value of Lebron James' next NBA contract.
NBA salary inflation has averaged 11.74% annually over the past 25 years compared to an average U.S. price inflation rate of 7.88% and an average U.S. CPI index growth rate of 3.03%. NIA estimates the real rate of U.S.
price inflation to currently be around 5-6%, but NIA projects to see a breakout of double-digit price inflation within the next two years. If Lebron James signs with the Cleveland Cavaliers, his salary increase will be limited to 10.5% per year and if he signs with any other team, his salary increase will be limited to 8% per year.
Coming up this September, the latest doubling of the U.S. national debt will have occurred in just seven years. The previous doubling of our national debt took place in thirteen years. Even though Lebron James' annual salary increase of 8% per year (if he signs with a new NBA team) will be in line with the average annual rate of real U.S. price inflation, NIA projects a very minimum of a doubling of U.S. price inflation over the next five years because it will be impossible for the U.S. to keep up with rising interest payments on our national debt through taxation.
It was just announced on Wednesday that the NBA salary cap for the upcoming season will be $58.044 million. Based on this cap, the maximum salary for the first year of Lebron James' contract can be $17.4 million. Assuming that Lebron James signs with a new NBA team, the final year of a maximum five year contract has the potential to be worth $23.67 million. However, if the U.S. experiences an average price inflation rate of just 15% over the next five years, the final year of Lebron James' contract will only have the purchasing power of $11.76 million in today's U.S. dollars.
Although Lebron James would certainly have no problem living off of $11.76 million in annual real NBA salary income, there is serious risk of hyperinflation completely wiping out at least one or two of the final years of a five year contract signed by Lebron James. The U.S. economy is staying afloat right now due to a temporarily strong U.S. dollar and
artificially low interest rates on our national debt. With austerity cuts taking place across Europe, NIA believes short-term confidence will soon be restored in the Euro, which will put a spotlight on the debt crisis in the U.S. This could send interest rates on our marketable debt from a record low of 2.5% up to as high as 10% by 2014, with interest payments reaching nearly 50% of total U.S. tax receipts. The Federal Reserve will become the U.S. Treasury buyer of last resort as the world rushes to dump their U.S. dollars
Lebron James has stated that he wants to become a billionaire. NIA believes Lebron James will become a billionaire, if he takes his current wealth and invests it into gold and silver, in order to protect himself from hyperinflation. If Lebron James keeps his wealth in U.S. dollars and other dollar-denominated assets, he will probably see the purchasing power of his wealth wiped out this decade. NIA strongly recommends to Lebron James that he watch our latest documentary 'Meltup', which has surpassed 623,000 views since May 13th.
NIA also suggests to Lebron James that he read our 2010 U.S. Inflation Report, which is now available for download on the homepage of http://inflation.us