Soaring lumber prices that have tripled over the past 12 months has caused the price of an average new single-family home to increase by $35,872, according to a new analysis by the National Association Home Builders Economics team.
The latest Random Lengths prices as of the week ending on April 23 show the price of framing lumber near $1,200 per thousand board feet — up nearly 250% since last April when the price was roughly $350 per thousand board feet.
The lumber-housing situation is not unique.
The Bloomberg Commodities Agriculture sub-index is up 22% this year to its highest level since 2016.
Coffee prices are heating up—and experts say an even bigger price hike could be coming https://t.co/lhGDKcin8g— The Wall Street Journal (@WSJ) May 2, 2021
It's only the beginning, folks.
You can print up trillions of new dollars and just pass them out without expecting a major increase in prices.
The Jerome Powell-led Federal Reserve may prove to be the most irresponsible in the Fed's entire history.
Something I am noticing is instead of price inflation, there are shortages of so many things. It seems that companies are reluctant to raise prices and upset their customers and are instead backlogging purchases. I don't imagine this state of affairs will hold.ReplyDelete
Re how vicious currency devaluations can be for many people, I heard an interesting anecdote today in a podcast about a young man who escaped the horrors of North Korea. He described in excruciating detail the various ways that the communist regime savaged the common man/woman there.ReplyDelete
Almost in passing, the young man mentioned "did you hear about the currency devaluation that occurred in North Korea in 2010." (It caused him to be homeless again.) He said that it, "killed thousands of people because the money that people had been saving became worthless."
He added, "a lot of our neighbors committed suicide. It was like one day they had something and another day they have nothing. And they have no hope of living."
Charles Ryu, Confessions of a North Korean Escape Artist, Episode 84 of the Jordan Harbinger podcast (at 52:00 of part 1).
That was an eye-opener for me as I've considered currency devaluations mostly as an ongoing economic matter to strategically protect myself ... but I hadn't stopped to consider just how horrible it can be for many people. Obviously, most US citizens haven't experienced hyper inflations ... but many foreigners know it all too well.