We begin by reminding you that the three most important things one needs in day-to-day living is food, energy and shelter. The Federal Reserve gets away from including any of them in its matrix formula of manipulation about inflation. This should be the national protest and not just from a picket line, but the media, internet and Congress. It doesn't happen. Now, the third piece in the important items will become more visual both literally and physically. The moratorium is ending on evictions. We will see more people living on the streets, in cars and RVs. This will be an ongoing horror film just as sad as the videos from Ukraine.
Landlords...
have been raising their prices on rentals in double digits. They are seeking to reclaim the lost rents due to the moratorium. They seek to prepare for the next moratorium edict. Rents are up nationally by 19%. Rents have risen by 0.6% every month! There is also another hidden problem in rentals. Because landlords have not received any rents for a long period of time, many of these small owners could end up in bankruptcy. This will only add to the problem of finding rental space that is safe and affordable.
Anyway, we start by showing life in the Big Apple. A medium one-bedroom apartment leases for $2,045 per month. Dear Reader, according to mortgage loan officers, to qualify for a home loan, one must be able to cover the P&I with one week's pay. By calculating the rental price in New York, this implies a salary of $8K per month or $96,000 a year. Keep in mind, that my example uses a small unit. I'm sorry, but very few of us make that much money. This is why we not only cannot afford to buy a home, but now, we cannot even make rent. People are using one-half of their income on rent. This is why living paycheck-to-paycheck, our poor citizens cannot sustain a car breakdown, dental need or any of the other of life's unexpected situations.
Single-family homes...
give us another picture of inflation and affordability. The above NY example is with an apartment or multi-family building. Many times, and locations in inner cities, these are areas where families do not want to raise their children. They seek a family neighborhood. However, single-family rentals are up 12.6% from a year ago. An Apartment Life report shows leases are rising even higher at 17.6% from a year ago. It seems whoever is releasing a study, their findings are one upping somebody else's work. In addition, other factors are causing costs to spike like repairs, taxes, and insurance. Even insiders like the Fed Governor of San Francisco says higher prices are coming. Former Secretary of the Treasury, Larry Summers says, "Another 7.4% rise leases is coming."
Other Factors...
like the recent lockdown in China where 51 million people are in curfew. This will mean more supply chain problems. Governments are putting more budget money into the military due to Russia and Ukraine. Again, this means less consumer items which will result in higher prices. Law of Economics: more demand, less product = higher costs. The recent Federal Reserve interest rate hike is a joke. Speaking of which, the chairman, Powell said that six more hikes will come this year. This is pure BS! He follows that lie with the claim to fight inflation with six more hikes next year. The Fed is for the wealthy. It steals from citizens by using fiat money, which is artificial and in violation of the constitution. Never forget that! This is why we say, End the Fed!
People, rates should never have been this low. It actually causes inflation because the rate was below the actual inflation level all along. This is negative rates!
All these belated rate hikes will accomplish is making home ownership more difficult. Even if we are wrong, the interest rate at the end of this year will only be 1.9%. That is a tragic joke when inflation, even by the government's manipulated formula is running at 7.9%.
Second Example
The household medium income in 1950 was $2990. This amount actually covered 40% of the average selling price of a home. You could have your castle for $7,354. This is what inflation does to the value of the dollar, our standard of living and social mobility. This is how central bankers and the Fed have destroyed America. End the Fed! Peace.
