Friday, May 19, 2023

Inflation, buying a home, and the destruction of the American middle class


Those three elements all go together, according to The Good Citizen.  Here's an excerpt.

Engineering the destruction of the middle class:

  • Money printing and reckless spending create massive inflation driving up the costs of everything
  • Import millions of illegals and housing demand will eventually exceed supply, even in highly desirable areas
  • Export manufacturing jobs by the tens of millions through globalization
  • Import millions of third-world tech workers with H1B1 Visas to undermine the American worker
  • This is also how the California invasion of other western states was engineered: A couple sells their two-bedroom ranch shit box in Reseda they inherited from her parents for $2 million and can buy whatever they want in Idaho, Oregon, Nevada, Washington, Montana, and so on and still have a million left over
  • Wages and income never keep pace with inflation while debt is encouraged by parasitic usury-pimping banksters at every turn; homes, cars, college, appliances, furniture, big-ticket electronics, vacations, amazon shopping, hell everything can be bought in installments now with companies like Affirm charging 15% APR
  • Nobody ever gets ahead. Each generation falls further behind the last one.

. . .

It’s not that Americans’ homes that they bought for $500,000 five years ago are now “worth” a million bucks, it’s that a million bucks doesn’t buy much anymore and the **** it does buy, is mostly, pure ****.

. . .

The dollars used to purchase homes are rapidly decreasing in value, whether they come from Blackrock or a mortgage for a first time buyer.

Once double-digit inflation kicks in for two consecutive years the path to hyperinflation is not far away. And worse still, because inflation is compounding year after year we’ve just experienced 30% inflation since 2022.

Historically any nation that has crossed the 50% inflation mark in a single year did so in a matter of days. And the jump from 50% to 150% followed soon after also in a matter of days. From there it can jump to thousands of percent and it’s game over for any holders of that currency.

It doesn’t matter if a home sells for a trillion dollars on Flip or Flop or any of those other idiotic shows where miserable husbands and wives reveal that nothing will ever make them happy, not even white marble countertops or double vanities to go with triple ignorance and quadruple stupidity. The purchasing power of a trillion worthless dollars is nothing.

There's more at the link.

I highly recommend clicking on the link above and reading the whole article.  The Good Citizen has some very cogent arguments, and some scary comparisons between what you can buy for half a million dollars in California versus Scandinavia.  They'll make you think - and it's hard to argue with his conclusions.



Old NFO said...

Having lived through double digit interest rates and bought a house, I REALLY don't want to go through that again.

Aesop said...

The problem is, the $#!^box ranch in Reseda was bought by the parents for $40K in the 1960s. In real terms, it's not worth much more than that now, if prices reflected reality rather than inflated fiatbux.

And Reseda and all contiguous suburbs are now an outright barrio, looking more like San Juan, Havana, or Tijuana than America, for miles in any direction.

And even if, by some miracle, that's not true on that block, yet, it is within a couple of blocks in any cardinal direction.

The manufacturing that used to support that 'burb has now fled to Texas, Georgia, AZ, or anyplace in between, except for what was shipped outright overseas, so unless the buyer works in the movie and television industry, the only people that can afford the house are either cartel dope dealers, or 47 families living in every room, with 20 bunk beds in the garage.

There are now 26 kids from that house attending the local school, each with a mean IQ of 87, and not 50 words of English between them (two of those words being "F***" and "you") and 57 cars (not counting the hulks on blocks or being stripped for parts in the alley) adding to the traffic, and other than property taxes and sales taxes, paying not one effing dollar into local, county, state, or federal coffers, but drawing about $40K each (on average) in "free" schooling, food stamps, healthcare, and other welfare Ponzi schemes foisted onto the backs of those working, paying their taxes, and following the laws, and there are now 587 voters registered at that address, all voting by absentee ballot. With a 100% turnout record going back a decade.

I'm not spinning this as cheap hyperbole; I know whereof I speak, down to my marrow.
I lived in Reseda.
Back when it was still part of the United States.

Good luck with how things are now.
Mark my words, 1845 and 1848 are going to make a comeback out west.
Mexico is going to go 0 for 2, but it's going to be a lot bloodier the second go-around.

LL said...

I can't argue with the facts. It's all self-evident, and it's frustrating to have to eat the shit sandwich of their creation.

Xoph said...

If you look at where the migrants are going Texas is going to be a huge problem. What happens when we lose the petroleum processing in TX? In CA it is the big cities, but they represent the Ports in LA, Naval base in San Diego and certainly other key assets of which I am unaware.

Rurally, don't expect to escape trouble. Who has all the cows the hungry people will want? Who has experience terrorizing the countryside (hint, speak Spanish and have lots of tattoos. The migrants coming in to our country have experience in getting along with the gangs, i.e. give them what they want and run away.

Historically some of the Sheriffs and Marshals who brought law and order to the old west had been criminals themselves. It will take very rough men to straighten this mess out. It will take men who are more than willing to exceed the brutality of the cartels and a legal system willing to support them. See Judge Isaac Parker.

James said...

In 1964 a gallon of gasoline was a silver quarter, it is still about that price today, the fiat paper has just lessened that much in value. Put your surplus money in hard assets or it will all be gone.

Joe said...

Those houses bought in 1960 were 15 grand, not 40 grand. I visited relatives in Ontario , California. At the time.

Aesop said...

Ontario is to Reseda what Bumfuck is to Brooklyn.
Prices do not correspond because one is 10 miles from downtown, the other is 80 miles from downtown.

Will said...

House I shared in Sunnyvale CA sold new in '65 for ~$16.5. 4bd/2.5 bath. The Marantz stereo console bought at that time was $1500. Identical neighboring house sold in '85 for $750k.

Those Eichler copy houses were junk. Zero insulation, floor to ceiling single pane windows everywhere, forced air heat. Winter utility bills were ~$400/month in early 80's.