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<p>[QUOTE="John Burgess, post: 8225962, member: 105098"]paid 79K for my house in 1987 on a mortgage, it's the largest floor plan in my community at just over 2K square feet. One that have sold recently down the street was asking for $279k, and many bidders, and a bank offered them $71K over ($50k over the highest bid) to get the property.</p><p>No idea why.....</p><p><br /></p><p>Mostly they are selling around $270-$325K right now, it's mostly businesses and banks doing the buying, looking to tie up excess cash into property, I guess as a hedge against inflation, same way we use silver or gold but a bigger ticket item.</p><p><br /></p><p>inflation is necessary, deflation or stagnation is REALLY bad. if inflation outpaces wages and costs rise too fast it hurts. but it is what it is. there was a major contractionend of 2019-2020. the rapid growth of demand will cause these issues, just kind of have to ride it out and weather it and it will all balance out again.</p><p><br /></p><p>And to be completely fair about it, a lot of this has to do with tariffs on imports being handed down to consumers. it's not forcing domestic supply increase, or china to be better trade partners, it's just forcing a hand deeper in everyone's pockets.</p><p><br /></p><p>How great was it first quarter 2020 when we had near 0% inflation. It wasn't so hot for me, I tell you what. </p><p><br /></p><p>my opinion, yeah, everything goes up over time, gold, milk, bread, houses, silver, cars, whatever you buy, either it gets smaller or prices go up, or they add "new and improved", a business needs to do better this year than last year, a worker needs to do better this year than last year, if it's all on pace it balances nicely, when it gets out of wack, it stresses everything. </p><p><br /></p><p>Where were all the people praising the low gas prices in first quarter 2020? Yeah, they were all working from home or jobless looking for stimulus money to pay rent and nowhere to drive to. </p><p>Now that demand is back up so is the gas price. Producing more to sell to the world market doesn't correct the issue either domestically, not for us, but that's capitalism. Heck they will sell it to another country then buy it back just to raise the price.</p><p>We all know wages have been held back a really long time not keeping pace with inflation or the Consumer Price Index. </p><p>$100 in 1913 is $3.87 today. NONE OF US, have seen it "good" if we were born after 1933. From 1983 until now that $100 in 1913 had the buying power of less than $10. </p><p><br /></p><p>Anyways, a 3.51% inflation rate means $100 in 1933 is equivalent to $2162.68 today... I'd say gold is in the neighborhood of where it ought to be now. A new house modest house in 1933 cost $5750, that puts a modest house in the range of $150K today, an average care in 1933 was $600, today that would be about $15,600. also seems about right BUT there are demand spikes at play also. </p><p> </p><p>Not sure where I am going with this, I'd say "it's transitory" and it will balance out in time, but I'm sure someone will call baloney on that. but the reality is, the stock market can't go up forever into infinity, and the money supply can't grow into infinity either, and neither can the CPI or inflation. </p><p>Oh yeah. If you had a $100 bill in 1933 its worth $3.87 today in buying power. </p><p>if you had $100 in gold in 1933, you'd still be doing well today on it, instead of $3.87 buying power, it would have... $1900 buying power, but still be less than it should be I think by around $200 or so.[/QUOTE]</p><p><br /></p>
[QUOTE="John Burgess, post: 8225962, member: 105098"]paid 79K for my house in 1987 on a mortgage, it's the largest floor plan in my community at just over 2K square feet. One that have sold recently down the street was asking for $279k, and many bidders, and a bank offered them $71K over ($50k over the highest bid) to get the property. No idea why..... Mostly they are selling around $270-$325K right now, it's mostly businesses and banks doing the buying, looking to tie up excess cash into property, I guess as a hedge against inflation, same way we use silver or gold but a bigger ticket item. inflation is necessary, deflation or stagnation is REALLY bad. if inflation outpaces wages and costs rise too fast it hurts. but it is what it is. there was a major contractionend of 2019-2020. the rapid growth of demand will cause these issues, just kind of have to ride it out and weather it and it will all balance out again. And to be completely fair about it, a lot of this has to do with tariffs on imports being handed down to consumers. it's not forcing domestic supply increase, or china to be better trade partners, it's just forcing a hand deeper in everyone's pockets. How great was it first quarter 2020 when we had near 0% inflation. It wasn't so hot for me, I tell you what. my opinion, yeah, everything goes up over time, gold, milk, bread, houses, silver, cars, whatever you buy, either it gets smaller or prices go up, or they add "new and improved", a business needs to do better this year than last year, a worker needs to do better this year than last year, if it's all on pace it balances nicely, when it gets out of wack, it stresses everything. Where were all the people praising the low gas prices in first quarter 2020? Yeah, they were all working from home or jobless looking for stimulus money to pay rent and nowhere to drive to. Now that demand is back up so is the gas price. Producing more to sell to the world market doesn't correct the issue either domestically, not for us, but that's capitalism. Heck they will sell it to another country then buy it back just to raise the price. We all know wages have been held back a really long time not keeping pace with inflation or the Consumer Price Index. $100 in 1913 is $3.87 today. NONE OF US, have seen it "good" if we were born after 1933. From 1983 until now that $100 in 1913 had the buying power of less than $10. Anyways, a 3.51% inflation rate means $100 in 1933 is equivalent to $2162.68 today... I'd say gold is in the neighborhood of where it ought to be now. A new house modest house in 1933 cost $5750, that puts a modest house in the range of $150K today, an average care in 1933 was $600, today that would be about $15,600. also seems about right BUT there are demand spikes at play also. Not sure where I am going with this, I'd say "it's transitory" and it will balance out in time, but I'm sure someone will call baloney on that. but the reality is, the stock market can't go up forever into infinity, and the money supply can't grow into infinity either, and neither can the CPI or inflation. Oh yeah. If you had a $100 bill in 1933 its worth $3.87 today in buying power. if you had $100 in gold in 1933, you'd still be doing well today on it, instead of $3.87 buying power, it would have... $1900 buying power, but still be less than it should be I think by around $200 or so.[/QUOTE]
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