Fewer people who own homes, more people who are wage slaves living paycheck to paycheck earning to live in ever increasingly expensive rental units. Income is down but rent is up. People need a place to live.
I just sent out 5% rent increases to all my tenants and they are still below market rents. Home prices in the SF Bay area have increased 30% year over year. Property taxes go up 2%/ year. Gas & grocery – you know the story there. Even my dog groomer raised her prices 5%. There is no where prices have not increased at least 5%, unless you count buying ground chuck instead of ribeye steaks or water instead of milk… – jo plummer
Inflation is rotten to the core
Commentary: Regardless of what Fed says, prices are rising
How about giving us three cheers if you really believe that inflation has been vanquished? I can’t hear you!
These days, prices for many kinds of goods and services have suddenly begun to rise. Some are obvious, some are not.
Among the more visible items riding the up-elevator are prices of food, energy and health care. However, there are many others for which the price increases are less visible but are pinching your pocketbook just the same.
The Biggest Financial Bubble About to Burst!
“Nothing is normal: not the economy, not the financial system, not the financial markets and not the political system. The system remains still in the throes and aftershocks of the 2008 panic and the near-systemic collapse, and from the ongoing responses to same by the Federal Reserve and federal government. Further panic is possible and hyperinflation is inevitable.
“The economic and systemic solvency crises of the last eight years continue. There never was an actual recovery following the economic downturn that began in 2006 and collapsed into 2008 and 2009. What followed was a protracted period of business stagnation that began to turn down anew in second- and third-quarter 2012. The official recovery seen in GDP has been a statistical illusion generated by the use of understated inflation in calculating key economic series (see Public Comment on Inflation). Nonetheless, given the nature of official reporting, the renewed downturn likely will gain recognition as the second-dip in a double- or multiple-dip recession.
“What continues to unfold in the systemic and economic crises is just an ongoing part of the 2008 turmoil. All the extraordinary actions and interventions bought a little time, but they did not resolve the various crises. That the crises continue can be seen in deteriorating economic activity and in the panicked actions by the Federal Reserve, where it proactively is monetizing U.S. Treasury debt at a pace suggestive of a Treasury that is unable to borrow otherwise.”
“April Employment and Unemployment, M3 and Monetary Base,”
John Williams, Shadowstats.com, 05/03/2012
It had to happen. And now it has begun. The very biggest bubble in financial history has begun to deflate. And over the next few months, we expect that deflation to accelerate and morph into a bursting.
And that bursting will affect the price of nearly every financial asset on the planet, and many key non-financial ones as well.
Independent (non-main stream media) financial analysts generally agree that The Fed, Bank of Japan, and increasing numbers of other Central Banks’ orgy of fiat money printing (i.e., competitive fiat currency purchasing power debasement – i.e., the “currency wars”) will likely come to a very bad end.
One likely result: hyperinflation. (The U.S., e.g., is already threshold hyperinflationary with real CPI at 9.15% per shadowstats.com.) and consequent collapse of one or more sectors. Think Argentina (50% inflation) as a distinct possibility.
US Rents Hit Record Highs As Homeownership Plunges To 18 Year Lows
he American Homeownership Dream is officially dead. Long live the New Normal American Dream: Renting.
According to the latest quarterly homeownership data released by the Census Bureau, the raw homeownership rate of 65.0% was unchanged from last quarter and 0.4% lower than a year ago. And on a seasonally adjusted basis (not sure why homeownership is adjusted for seasons: people who live in a house in the winter generally live under a bridge in the summer?), the percentage of Americans who have a house declined from 65.2% to 65.1%: the lowest since 1995.
Obviously the flipside to most “children” in their mid-30s still living in their parents’ basements is that those wishing to brave the New Normal world will have to spend a lot for rent.
A record lot in fact: the median asking rent for US vacant housing units just hit an all time high of $735 per month.
The true inflation rate in this country is about 8%. That’s why consumer confidence is low. Prices are rising and food and energy are not being counted in the equation. Just like unemployment, when your benefits run out, you are now employed. A rigged game to produce rigged results. The inflation calculation has been changed 6 times since its inception.
America’s Poor Problem – 15 Percent Live Below Poverty Line
America’s slow road to recovery is looking like it has more potholes than paved paths these days. The Associated Press released a survey saying as much this week, when it found that four out of five adults struggle with joblessness, near poverty or reliance on welfare programs for at least part of their lives. According to the study, the country’s poor remains at a record high, with 46.2 million, or 15 percent of the population, living below the poverty line. RT Producer Rachel Kurzius and Prime Interest Host Bob English break down the numbers in greater detail.