First, I saw this on Not The Bee yesterday:
Mortgage rates are plunging again which I guess means we can all wave bye-bye to affordable home prices for the foreseeable future!
What grabbed my attention was this quote, emphasis in red mine:
It will also keep record high home prices continuing on their run higher. Prices in January were 19.1% higher year-over-year, according to a report released Tuesday by CoreLogic. That level of growth is the highest in 45 years, when CoreLogic began tracking prices.
We already have the home we plan on riding into the sunset living in so that isn't a big deal to us but if you are looking to get into a house of your own, with home prices going up almost 20% in a single year? That dream is getting a lot harder to ever achieve. This is by design. Remember that a central tenet of The Great Reset is that you will own nothing and be happy...
For more details see my post: The Great Reset: A Solution In Search Of A Crisis
Again, this isn't just the result of incompetence or natural market forces, it is all part of a plan and they have come right out and told us the plan: you own nothing, you live in the pod and eat the bugs, everything you "need" is rented and delivered to you.
Nothing around you is happening by chance.
Something else related to the post about rising gas prices.
We are all used to "free" shipping. Hell, I get pissed if something takes more than two business days to get to me. The outrage!
Anyway, to get that stuff to you for "free" and in a couple of days takes a lot of something. That something is gasoline.
It takes gas (diesel) to run those semis around the highway. It takes aviation gas to fly those cargo planes. It takes a ton of fuel to get the cargo ships from China to the U.S.. Of course it also takes a lot of gas to get the Amazon, UPS and FedEx delivery trucks out to your house.
Have you noticed how many delivery vehicles are on the road today? Even out here in the country it is not unusual to pass multiple delivery trucks in a matter of minutes. Those things are burning a shitload of gas, especially since UPS guys think they are NASCAR drivers and run those big brown van like a race car.
What happens when the cost of running those things increases by 50% or more? The magical electric vehicles to replace them don't exist. That means that the bottom line for these places is going to get hammered. They ain't running a charity, Amazon isn't Meal On Wheels. But they also aren't going to be able to wean people off of "free" delivery. What to do?
The answer is simple. They will roll those prices increases into the retail prices we are paying and inflation will just keep snowballing. With easy credit and the illusion of wage increases for many people, price sensitivity is pretty low right but that won't last for long. It is really hitting people in the wallet. We just bought dog food a couple of days ago and it was $60 something for a bag the last time we got it a few weeks ago. That same bag of dog food this week is over $70 (we buy high end food). The same is true for just about everything.
As logistics prices go up along with gas prices, so too will retail prices. It is simple economics at work. If gas across the country gets over $5/gallon as I expect it might? You are really going to see retail prices for food and consumer goods go through the roof.
We are in pretty precarious times right now. If you can't hold it in your hands and better yet use it for something practical, it isn't worth much.