Posted on 06/06/2022 6:30:03 AM PDT by Browns Ultra Fan
You better hope it doesn’t get Cold Outside. Because the cost of heating your house just rose 5.74% this morning (natural gas futures). To $9.01.
Between Biden’s anti-fossil fuel policies and the war in Ukraine, natural gas futures are up 255% under Biden.
With rising natural gas prices, one would think American consumers and American home builders would start building higher-density housing like duplexes.
But The Federal Reserve has helped America build BIGGER houses (as in greater square footage).
Note that following the financial crisis and the takeover of the US economy by The Fed, median square footage of US housing starts rose with Fed easing. Median square footage started falling as The Fed leveled-off its asset purchases (green line). But when Covid struck and The Fed really went to town (aka, monetary stimulypto), median square footage started rising again.
The above chart demonstrate the conflict that can arise between a Presidential Administration and The Federal Reserve.
But with alleged Fed monetary tightening, we should should see the demand for larger homes decline relative to smaller homes.
Mortgage rates have been climbing rapidly, making housing acquisition relatively less affordable.
Black Knight’s monthly P&I payment to average purchase price says it all.
My version of the Black Knight chart is slightly different, but tells the same story: home prices and mortgage rates are rising FAST with Fed stimulus, but should slow down.
I guess we can call both Biden and Fed Chair Powell jointly “Mr Freeze” for housing.
The Fed has helped make housing not only more expensive, but larger in size. And the Biden Administration and war has helped make heating those large houses more costly.
(Excerpt) Read more at confoundedinterest.net ...
Natural Gas prices do not get the attention like crude oil and gasoline.
In November 2020 Natural Gas was selling for $2.50.
Today, Natural Gas is over $9.00.-—that is almost a 400% increase.
Folks, start taking a look at your home electrical bills because a lot of the electricity is coming from Natural Gas fired electrical plants.
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Like Brian Kilmeade said with his Fox Cohorts all nodding their heads in agreement - Americans are willing to work two jobs for Ukraine.
The Networks are part and parcel of Biden’s scams.
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All this is happening when Pennsylvania, West Virginia, Ohio and New York is sitting on the Saudi Arabia of natural gas. Actually, that’s a bad analog, it’s much greater than Saudi Arabia. Of course, New York hasn’t touched a cubic meter of natural gas in the Marcellus shale formation.
“With rising natural gas prices, one would think American consumers and American home builders would start building higher-density housing like duplexes.”
It’s a fact that my 3300sq foot detached house costs less to heat and cool than my 1100sq foot townhouse. (That would be because the builder cut every corner on the townhouse, and it’s very drafty).
And I don’t have to deal with the type of crappy people that tend to live in townhouse neighborhoods around here.
As I predicted, there is going to be a major home heating crisis this Winter. This President has done this intentionally and MUST be impeached and removed from office.
“New York hasn’t touched a cubic meter of natural gas in the Marcellus shale formation.”
Your statement is not entirely correct. NY made fracking illegal. However, there are thousands of natural gas wells in western and central NYS. I grew up in WNY. There were people in the town I lived in that had them on their farms. My cousin lived about 30 miles southeast of Buffalo. They had one on their dairy farm that National Fuel gas put in and then capped(except for the line they ran to their house).
There is a place in Chestnut Ridge park south of Buffalo called the Eternal Flame. It was known locally as Gaslight Falls because the methane literally leaks out between the layers of shale about half way up the falls. You could go up and light it with a BIC lighter.
Time to turn back on the COAL fired electric plants and the ones that burn wood/cellulose waste. The tops/branches of trees from logging operations.
My heating oil company filled my tank last week. $5.99/gallon in NH.
My wife put an “I did that” Biden sticker on the bill when she sent it back with our check.
LOL, but it's not their fault. The problem is this is going to get much worse, people will have trouble paying to heat their homes this Winter.
NG also contributes to many chemical products like fertilizer. Higher NG costs means everything goes up too.
US and European natural gas prices will tend to normalize from such a huge difference over the last 12 months. So much higher prices in EU are a massive arbitrage opportunity for traders and producers - the difference on just one LNG load going to EU vs. being sold domestically could be $50 million or more
Thus, EU prices will probably stabilize - while US domestic prices will most definitely GO UP, a lot.
Another huge cost evil neocons in DC are putting on the US people for their overseas empire-building schemes
Yes, that’s correct - regular bore wells are still allowed in NY, but fracking is not. I don’t know how NY State defines “fracking” exactly, but regardless, the benefits and the fracking industry have absolutely avoided NY State.
Like you, I have a friend in the area - who owns lakefront property in Canada on Lake Erie, not far from Buffalo. His grandfather had a small gas well drilled on the property in the 1950s - for $250!
The gas is very clean, and 70 years later, its still flowing and he feeds it into his house, and a number of beach rentals properties he has built over the years. What a gift!
True that. And with Obama forcing power companies to replace coal plants with natural gas plants, higher NG prices = higher electricity prices. The power company adds their fuel costs onto the bill.
Brandon limiting natural gas was the last straw for me last year.
Soy Boy Biden.
I remember when Coumo made fracking illegal in NYS. My Mom(RIP) even had concerns about it because of all the propaganda that had been put in the newspaper and on TV.
I told her to cancel her prescription to the Buffalo News and stop watching ABC.
I think it was probably in National Fuel Gas best interest to not allow fracking in NYS. They have so many capped wells scattered around NY that it kept the price higher. They probably made a donation to Cuomo and the whole NYS assembly to ban it.
My cousin who had a gas well on his property had every appliance running off of that free gas. The deal you had to make with the utility is that you would only allow them to drill on your property if they would pipe it to your house.
He heated the house and water, cooked and even had a gas dryer. He even considered a gas fridge.
Biden? ALL of the corrupt and evil Congress should be turned out in November...
We are shipping all we can to Europe.
Because that hurts every American.
And neocons hate Americans.
“An incredible transition.” Chomo Joe
“Necessarily skyrocket” Barry Soetero
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