There was a post on here about plywood's price going up 2.5x over the course of about a year, .
The question is why hasn't this happened with McDonnald's ice cream cones, or two litter soda. I'm not spending four bucks on a two litter of soda. I'm spending closer to a buck.
Inflation is happening. But it is important to understand what low interest rates do to specific things.
Low interest rates = increase in home values. Increase in home values equals an increase in margin between a home and the cost of building. And increase in the margin equals more home construction. More home construction with a temporary huge margin equals a run on building supplies.
The scary part. More home construction equals more immigration. Somebody has to live in those homes. In 2006 was the housing spike (before the housing crash in 2008). It was also the peak of immigration under the Bush era. Low interest rates caused that spike in available housing. Whites moved into the new houses. Hispanics moved into the then abandoned neighborhoods.
End the Fed. You will not win anything until you take that tool away from them.
There was a post on here about plywood's price going up 2.5x over the course of about a year, [here](https://poal.co/s/MildlyAlarming/340907).
The question is why hasn't this happened with McDonnald's ice cream cones, or two litter soda. I'm not spending four bucks on a two litter of soda. I'm spending closer to a buck.
Inflation is happening. But it is important to understand what low interest rates do to specific things.
Low interest rates = increase in home values. Increase in home values equals an increase in margin between a home and the cost of building. And increase in the margin equals more home construction. More home construction with a temporary huge margin equals a run on building supplies.
The scary part. More home construction equals more immigration. Somebody has to live in those homes. In 2006 was the housing spike (before the housing crash in 2008). It was also the peak of immigration under the Bush era. Low interest rates caused that spike in available housing. Whites moved into the new houses. Hispanics moved into the then abandoned neighborhoods.
End the Fed. You will not win anything until you take that tool away from them.
(post is archived)