As the Federal Reserve Bank pumps massive amounts of money into the system, the price of lumber is soaring.
Specifically, the price of lumber per thousand board feet is at $1,044, according to Random Lengths. That's an all-time high, and up 188% since the onset of the lockdowns, COVID-19 panic and massive Federal Reserve bank money printing.
The National Association of Home Builders calculates that current lumber prices are adding at least $24,000 to the price tag of a typical new single-family home.
It is only the beginning folks, price inflation is going to expand across most consumer markets in the months to come.
There is a modern monetary theory hold on the thinking at the Fed whether members want to admit it or not. MMT holds the bizarre view that government debt doesn't matter and large amounts of money printing is not a problem.
We shall see.
-RW
(via @Mens_Corner_)
RW, when you see price inflation like this, how do you distinguish as causes the impact of supply-side shocks (e.g., from the disruption on industry caused by lockdowns) from monetary inflation?
ReplyDeleteThis is an excellent meme because it also shows the 2021 dollar will buy less of a truck :)
ReplyDelete