so you get a homebuild loan for $XXX and then materials goto $XXX*X, now what?
Posted on 06/09/2021 9:29:36 AM PDT by Heartlander
Pssst. the government wants inflation. It monetizes the debt.
That aphorism was more persuasive pre-Marxist America. In today’s political climate we can reasonably attribute this state of affairs to malice.
The author is late to the game. In recent days the price of lumber has been declining-—maybe not yet at Home Depot, but on the futures exchange it has.
Malice is a perfectly acceptable explanation for me. There is something that stalks the land that goes about cloaked, but with a total loathing for anything that is part of the American Spirit, and if they can, they get get leverage on some commodity or service, causing it to be jacked up far beyond any plausible market fluctuation, and thus create even a small degree of uncertainty, if not a wider chaos.
Life becomes a crap shoot as we descend ever further into dystopia.
As it devalues the dollar. Soon, a 100 dollar bill will buy a gallon of gas.
You’re not wrong. They hate us.
I love a good crap shoot though, I’m an excellent shot heh.
> Pssst. the government wants inflation. It monetizes the debt. <
The Federal government (D and R alike) has painted itself into a corner. As you noted, the only way they can begin to pay off the debt is with inflated dollars.
But I’m guessing we’ll see higher interest rates too. That will make it expensive for Congress to borrow more money. (And they will borrow more, regardless.)
Where’s Calvin Coolidge when you really need him?
Just a blurb on TV that our local produce prices have gone up 400% since Biden took office. Plus we’ve having shortages again—meat and dairy among others.
Soon, a 100 dollar bill will buy a gallon of gas.
so you get a homebuild loan for $XXX and then materials goto $XXX*X, now what?
Good to hear. One section of the hardwood flooring in my living room needs to be replaced, and I was very concerned about both prices AND availability.
“While former President Donald Trump is often rightly criticized for his protectionist policies”
Protectionist policies. The battle cry of the true libertarian. Screw America First, we’re just one big worldwide marketplace.
The leftist will be dumped soon enough and neutered next year.
There was a great video I saw that talked about using inflation to your advantage.
The idea is that BEFORE it takes off, refinance your home with a really cheap FIXED RATE loan and pay as little as possible on it. Then, when inflation is going to the moon, take a marble off your desk and sell it to a little kid for inflated dollars, then pay off your house with those dollars.
When it took a wheelbarrow load of marks in Germany to buy a loaf of bread, that same wheelbarrow could also have been used to pay off an existing fixed rate loan made before the inflation kicked in.
Substitute "Economies are" for "Technology is":
"Technology is dominated by two types of people: those who understand what they do not manage, and those who manage what they do not understand." ~ Putt's Law
Call it nully's Law, if you must...
That happened a few months ago too, but we never saw it at the retail outlets. And then it went up again.
But yes. I need to frame the walls in my new “pole barn” shop but I’m holding off on buying the lumber until this thing passes. I don’t need to finish it that bad, so I’m not paying top dollar to do it.
"Hanlon's razor (framed earlier and slightly differently by Robert A. Heinlein) more persuasive: "Never attribute to malice that which is adequately explained by stupidity.""
IIRC, Heinlein said "Never attribute to malice that which can be adequately explained by stupidity, but don't rule out malice!"
Something I saw at my local lowes is weird, and it’s true today. A 2x4x10 is $14.16, but a “SEVERE WEATHER” treated 2x4x10 is $.60 CHEAPER.
The word from day one was that treated lumber is what is getting hammered. Apparently not now.
https://www.lowes.com/search?searchTerm=2x4x10
I don’t believe the excuse that mills closed in 2008, I don’t believe the excuse that mill workers were not working due to Covid, and I don’t believe the excuse that people built too many home outdoor decks.
I’d bet that the production of lumber over 2020 and YTD 2021 has been at least the same as 2019, probably even more.
That would mean that someone is buying a lot of wood that was not before.
It’s not industry, they are not building twice as many houses.
Only nation states could buy that much wood.
And it’s not hard to figure out. People that work in the industry would know, but I haven’t seen a report on it.
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