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The Mystery Of The "Missing" Inflation Solved: Record Number Of US Renters Can't Afford Housing
Looking at a long-term chart of the BLS' core CPI chart or the Fed's preferred inflation metric, the Core PCE, reveals that the US is patiently trudging below the Fed's goalseeked goal of roughly 2% inflation per year. Even when stripping out just the "shelter" component of CPI reveals inflation that is barely higher at just under a 3% annual increase.
Of course, by now everyone knows that the artificially suppressed, "hedonically-modified" and seasonally-adjusted inflationary readings is what has permitted the Fed to not only grow its balance sheet to $4.5 trillion but to keep rates at 0% for 8 years. Because "how will the economy recover if there is no broad inflation", the Keynesian brains in the ivory tower scream, demanding more, more, more easing just to push inflation higher.
There is only one problem with this: it is all a lie - just ask any average American whose cost of living has soared in the past decade.
Still, with reality diverging so massively from the government's official data, reality just had to be wrong somehow.
Turns out reality was right all along, as revealed by the latest "State of the Nation's Housing" report released by the Center for Housing Studies at Harvard, which showed that while inflation among most products and services may indeed be roughly as the Fed and BLS represent it, when it comes to rent - that most fundamental of staple costs - things have never been worse.
According to the report, for American renters 2013 marked another year with a record-high number of cost burdened households - those paying more than 30 percent of income for housing. In the United States, 20.7 million renter households (49.0 percent) were cost burdened in 2013.
It gets worse: a whopping 11.2 million, or more than a quarter of all renter households, had "severe cost burdens, paying more than half of income for housing." The median US renter household earned $32,700 in 2013 and spent $900 per month on housing costs. Renter housing costs are gross rents, which include contract rents and utilities.
From the report:
Over the span of just 10 years, the share of renters aged 25–34 with cost burdens (paying more than 30 percent of their incomes for housing) increased from 40 percent to 46 percent, while the share with severe burdens (paying more than 50 percent of income) rose from 19 percent to 23 percent. During roughly the same period, the share of renters aged 25–34 with student loan debt jumped from 30 percent in 2004 to 41 percent in 2013, with the average amount of debt up 50 percent, to $30,700.
In other words, the reason why American consumers are caught in a state of near-permanent spending depression is simple: almost half of all renters can barely afford to splurge as they are spending 30% of their income just to cover rent, a number which surges to more than half of all income for a quarter of all renting households, of which increasingly more are Millennials... Millennials whose balance sheet liabilites include over $1 trillion in student debt.
Of course, the reason for this dramatic surge in rents has been extensively documented on this website in the past: with housing affordability plunging and stringent credit standards (at least until the auto subprime bubble 2.0 shifts back into housing) and the national homeownership rate plunging back to 1993 levels for most...
... a number that is kept artificially inflated by the 65 and over age group.
... this has forced an unprecedented number of American households to seek shelter, no pun intended, in the relatively cheaper confines of a rental unit.
And we do mean relatively: on an absolute basis, asking rents across the US have never been higher:
So as more Americans are forced into a limited number of rental units, prices have exploded at a far greater pace than what is officially reported in th shelter or core CPI metric, for all - but especially for those in the lower income buckets: as seen in the lower right chart, the rental "cost burden" of households making under $30,000 is the higest ever, at well over 70%!
But nowhere is the mystery of the "missing" inflation more obvious than in the following interactive map showing that in virtually all major seaboard metro areas, including the major cities in California, New York, and Florida, the number of households with a cost burden is 50% or higher.
Click on the interactive map below to find just how much of their income households in your region pay just to have a roof above their heads.
So the next time someone, usually either a government bureaucrat or a reporter/drama major masquerading as an "economist" tells you there is no inflation, just show them this map and ask how much of their after tax income do they spend on rent.
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What do you bet Obama in his next idiot speech proposes a fix...Rent Control! And the people will lap it up.
Damn,sometimes this stuff physically hurts.
Miffed
I hope he does. Just another fucking nail in this coffin.
that's why whatever inflation is left goes into his ego
the only inflation the fed cares about is wage. we shipped out our wage inflation to the slave nations slaving for slave wages decades ago, and that inflation is never coming back. meanwhile the fed steals silently from savers through devaluation by printing. POINTING OUT PERFECTLY THE IDIOCRACY OF THE FEDS EFFORTS.
signed in just to +1 you.
as always, it puts a smile on my face to see one of your posts.
Bush's fault, since it occurred during the Obowelmovement......ever notice how everything bad was Bush's fault, and nothing is Obma's fault? Funny how the chosenite media abandoned their "happened on his watch" " meme.
I bet that will come back with a new Republicon President
If we get the flavor of 'R' that we got here in Nevada I would not expect much improvement. In fact it get worse because the 'D' s are happy to push any tax increase they see, even if was the idea of an R.
Rs and Ds want the same things. They just quibble over who gets to hold the reins of power and a few minor details. On any major issue they all agree it needs to be "fixed" and specifically, fixed by government with increased regulations and taxes.
Name the issue that Rs disagree with Ds:
A. Immigration
B. Healthcare
C. Free Shit Army
D. Free trade (free robbery) deals
E. None of the above. <---- Hint: this is the right answer
Here is the real issue.....
http://galeinnes.blogspot.com/2015/06/the-war-on-poor.html
The lie is that rising prices is inflation.
The truth is that those who perpetuate this lie do far more to support the thieves that they claim to oppose rather than offer any meaningful remedy.
The truth is that the increased volume of counterfeit introduced in to the existing currency pool steals from the existing value and this is the cause of rising prices; rising prices are caused by the inflation of counterfeit.
The only mystery around here is why the above 3 sentences are mysterious.
I do not think it matters but you are wrong. Your target in argumentation is off. Neither you nor I nor anybody else on this planet are entitled to stable prices, let alone any price. Get that straight.
If your neighbor out-bids you in an auction, tough titties. If your neighbor trolls you at an auction leading you to bid higher on a purchase, good for him. If your neighbor owns/controls all of the surrounding territory leaving you land-locked and at the mercy of his tariff collectors, what are you going to do? If a herd of roaming wild animals** approaches your hut, go complain about your increased rising costs incurred to guard your goats.
<<...rising prices are caused by the inflation of counterfeit. >>
Technically, rising prices are caused by increased demand --- plain and simple. It does not even matter if it is counterfeit or legit money. If more folks moved into town and started freely doing commerce in competing currencies along-side state fiat or engaged in more barter --- that includes pms which are just a sub-set within the vast rubric of barter --- you would see rising prices.
The root of the problem is statism and taxation/threat is its weapon without which the counterfittingg would be none of your concern. Good money will chase bad money out because folks want predictability in their money. People can deal with price inflation but they can not deal with it forever when the numbers are hopelessly rigged against them.
The newly printed money is essentially given for free to a select few who get to spend it 1st before it cycles through the economy. The rise of prices happens because the select few either outbid the non-select few all of the time or clear the shelves. Within the abstraction of time, the select few are finished shopping when you are just coming home from work --- you have to go shopping after-hours and weekends hoping something is left to buy. You are always late in the bidding such that even if you had a well-spring of molten gold and silver flowing in your backyard, you would still face rising prices because you have to take the time/effort to bring your money to market.
The printing and counter fitting of fiat essentially makes the accumulation of enforced wealth by club members no more exerting than a card game. The chase for money is rigged. Good money can never out-pace the bad because folks are compelled to use the bad and carrying more than 1 set of books is financially unfeasible. If you are looking for mystery, ask why you can not pay your taxes in anything BUT state fiat. Imagine if you could pay taxes in any currency of your choice.
CA, FWIW, it seems to me that you voiced the same thought OCSure did, but in different words. I don't think OCSure is wrong, and I don't think you are wrong.
Yup. CA is in the 50%-plus range, I see.
I tried opening the hyperlink to the HAH-VAHD page, but all I got was a 'grey' map.
If you see a storm on the horizon, prepare. The ZH people have another way of saying this. 'Hedge Accordingly'.
MY PERSONAL situation is between 12 and 15% of income spent for lodging (in a state where the 'average' is 30-40%). 1,500 Sq. Ft, a pasture, outbuildings, water, food, and no 'ethnics' to speak of. It's too hot in the summer, and too cold in the winter, and there are no jobs here, and people have guns and Bibles and are kind and considerate of others (double-plus BAD). Of course, ALL situations are temporary. Pre-planning the place is quite a satisfaction (I've only been here for 26 years or so). Air-conditioned and well-heated and well-insulated and actually a very attractive place within 5 miles of stores and stuff... and a Rose garden and front and back yards and an oversized two-car garage... and a 30-foot flagpole in the front yard visible from the three bay windows... and a riding mower and all the accoutrements...
GUESS how much I pay per month, and win a 'prize'. YES, it's got an artesian well at about 180 feet, and malls within 10 miles of me, and REAL LEAD PAINT on the walls (and a new roof), and INDOOR PLUMBING, and no neighbors within 500 feet or so. I'll have to buy horses, I suppose, one day, for my 6-horse barn out back. NO, I'm NOT in Canada, or the 'Northeastern' states, or stuck in the 'rust belt', or 'the South', or 'Snowbird territory' (or fucking UTAH). This place was once known as 'God's Country'.
Do I pay MORE than two grand a month, or less? Should I invest in a boat so I can go to the ten-mile-long lake that is less than a quarter-mile away (and have an 'unfortunate boating accident')? Should I purchase a private airplane so that I can fly out to the private runway and stay in the private cabin that I have been promised that I could use for life (and have an 'unfortunate aircraft accident)'?
It's all a matter of 'strategic planning'. When you are good and kind and honest in life, these things literally 'fall into your lap'. Do I pay MORE than, say, $500.00 per month, or LESS (for example), for 'lodging'? I chose the LATTER, 26 years or so ago. The house 'only' has 1,500 square feet or so. A couple of acres (give or take) of fertile, arable land and open space is, well, 'of little, practical, significance'.
Larry Silverstien's rent must be absolutely ASTRONOMICAL! The WTC complex is his 'WIFE' I suppose (especially 7WTC; AKA 'The Solomon Brothers Building').
i wonder how much Benjamin Shalom Bernanke's 'rent' is!
What's a 'FWIW'? A 'fucking wife in waiting'? You 'millenials' are SO smucking FART in your little cutesy 'abbreviations'!
Is that the noise a drone-operated Evergreen Aviation International-modified chemtrail tanker makes while circling Southern California; or the sound of s Bollywood 'starlet' sitting on the potty relieving her bowels, perhaps?
tl;dr
TMI?
What I would like is to live in a rent-free FEMA trailer village. I also want government dental and healthcare. Also, throw in some food stamps. Now that's living.
Aw, c’mon.. look at the upside..
.. when the majority of the population cannot afford housing anymore, we will get David Rockefeller’s long anticipated insurrections and Eugenics solution.
Or.. maybe Thomas Jefferson’s anticipated solution.. I seem to recall something about a tree.
:-) GOOD! My guess is, it's paid off, free and clear. "A country boy will survive." :-)
"Counter fitting"? is that the same as rendering or plastering?
"Turns out reality was right all along" - go figure! That's kind of the definition of reality!
As a deflationist, I call out most articles on inflation as overblown. This one is very true. Rents have skyrocketed as my wallet goes empty. Screw banksters.
I think you've got that all wrong, it's screw the poor bastards who can't afford to pay us everything they own.... Because the banks are just the accountants of the criminal oligarchy that writes the rules & prints the money...
Enjoy your tax cake.
Oh yeah? Try looking at food, electricity, cable, insurance, cars, ferries, airfares and especially college tuition.
Deflation my ass...only in the velocity of money.
What is a deflationist?
what i wish my girlfriend was. she's currently inflating at a rapid pace.
OH NO! Wouldn't it be AWFUL if the television died, and you and she took to riding bicycles to the library to get books. :-)
DAMNED GOOD QUESTION!
It depends upon which 'skool' the 'edumacated idiot' is referring to (in terms of his so-called 'understanding') in the usage of the word.
A TRUE 'deflationist' is a coat-tail riding 1920's 'higher-edumacated' cocksucker for the 'outliers' who sees an opportunity to make 'duckets' from the loss of the value of the fiat-denominated currency (in his nation) (in GRAPHIC TERMS).
Of COURSE, there are a myriad of OTHER definitions (the one who still thinks that 'Whip Infltion Now' buttons are 'cool'; and the one who thinks that the FEDRES's 'job' is to KEEP INFLATION 'in check'). Of course, using 'big, vague words' to enhance the peoples' thinking that they are somehow' edumacated' (like 'DEFLATION'; or 'DEFLATIONIST', for example), give a false sense of credence to their claims (the CIA operative Jim Jones, for example, 'fully suicidal', told his congregation to TRUST HIM and drink the KOOL-AID... but 10-1 odds, 'Jim Jones' is still actually ALIVE).
OBVIOUSLY, you are not a TRUE 'deflationist', and if I make MY contribution I WILL get the BETTER SEAT!
DAMNED GOOD QUESTION! EXCELLENT!
https://www.youtube.com/watch?v=AKJfQN5CB5g
"As a deflationist,..."
As a REALIST, I can assure you that there is NO. REASONABLE, CAUSE, FOR ALARM.
Mr. Yellen is, as we speak, calling on Mr. Bernake to check out and ground-certify the OFFICIAL helicopters which will be used to deploy the 'money-bomb'. I'm sorry about your personal issue regarding 'deflation', but there are AMA board-certified doctors who are paid for by the Pharma corporation lobbyists who can proscribe pills for this malady (get used to the color 'BLUE', and the size 'LITTLE').
The 'interst rate announcement' was put off until SEPTEMBER.
A 'deflationist' is one who revels in popping little girls' balloons, and slashing car tires, I think. Are you 'pro' deflation, or 'anti-deflation'? Do the terms 'stagflation' and 'deflation' and 'inflation' and 'hyperinflation' and 'devaluation' have ANY common ground in your 'belief system'? Do you comprehend the usage of the term 'HEDONICS' as it relates to the CPI?
Again, my condolences for your 'deflation' problem. May the life-blood of your penis once again be enhanced by a woman who entices you.
< PLEASE let Bernanke touch the Arkenstone.
< Heck with Bernanke. He never had a great voice like Greenspan. At least you paid him a salary, and he got way more than his 15 minutes of fame. Let him go touch the Golden Calf on Wall Street if he wants. Hah! :-)
That rental inflation is not going to the landlords. Between insurance, tenants who damage rental units, government mandates, and Chinese made plumbing components that disintegrate and flood the place landlords are hurting.
My dad had a rental once but dumped it after one tenant did $18,000 worth of damage.
He didn't even break even after buy/sell costs, insurance, taxes, etc. Turned out to be one of the biggest headaches in his life and uber time consuming.
That right there is why I haven't bought. I'm only going to be in my location for a few years, and I'm terrified of the house being worth 25-50% less than I paid for it when I need to move and try to sell it, and I'm equally terrified of renting it to some low life that destroys the place. So, I rent, and save, and one day , hopefully, I'll be able to buy a decent place using little to no financing at all. The only thing that sucks is that yes, rents have gone up. If I had put 15% down on a house just like the one I am renting, the payments including taxes and insurance would be about 300 less a month than I am paying. It sucks, big time, but at least I don't wind up in a situation like you described, or stuck selling a house that's worth a lot less than I owe.
thats what property management is for...to handle situations like this. its getting so dangerous to collect rent; land lords are being murdered when they go to collect the rent from desperate people
.
www.ViewLasVegasRealEstate.com
Gone are the days of light contracts and easy land lording. Speaking from my own experience, you must have air-tight contracts (reviewed by local attorney), aware of all the "renters rights" laws in your town, county, state, must be meticulous in record keeping and communication with your leasee (I'm case you have to evict), can't let anything slide, no mercy if a lease covenant is broken, etc etc. it can be a giant pain in the ass. The key is screening your renters. If you get decent people, under a good contract with a solid property that isn't falling apart, you might make a little cash. If you try to do it as a hobby, you'll eventually get fucked.
Pro tip: put a throwaway clause in the contract about firearms and bring it up in your initial interview and see what they say. I got lucky enough to find a guy who built custom rigs for 3-gun shooting events. He was a multi-year renter and we got along marvelously.
Being a landlord is not for the faint of heart.
don't foget property taxes
plz don't remind me...
"landlords are hurting"
Who are those landlords that are hurting?
Blackstone, Blackrock, Equity Residential, Avalon Bay, American Residential Properties, Inc., Realty Income Corporation, Essex Property Trust, Home Properties, Inc...?"
A tear is welling up in my eye.
/sarcasm
Many people have saved for years and bought a second house to rent out to make income, instead of putting their money in the stock market. Those people are small landlords. I know some such people. Some own 1 extra house. Some own more. It's sort of like, there are families who own a small family restaurant, and on the other hand there are mega-restaurant chains like McDonalds or Red Lobster or Yum Brands (or whatever the precise name is).
You obviously haven't lived in an apartment here in Houston.
You are hence forth reminded of where it is that you presently preside, it's called unadulterated HELL on earth, enjoy it, it won't last.
On the bright side, the trillions of dollars that are being and were exported (funded by decades of deficits) will find their way back home. Those will more than just likely be highly inflationary...
Donkey nation is getting used until it's used up.
Just like Greece.
"POINTING OUT PERFECTLY THE IDIOCRACY OF THE FEDS EFFORTS. "
Wrong- the Fed is on-point for their goals as they are a Criminal Syndicate stealing whatever we make over our working lifetimes. It's wrong if you kill someone outright but if done over decades it's ok especially if you're the Fed.
one day it may be called high treason.
In my state (OR) renters are afforded a whole range of protections - just short of rent control. With all the liabilities associated with being a landlord, were rent controls to be added in nobody would pony up the money to build apartments. Hence, the long-term effect of rent control would be housing shortages. So, if you encourage rent control, are you also encouraging your daughter to domicile in your basement?
nope, not him... he's a corporate whore... inflating rents forces more into homes when they may otherwise not want to and his banker butt buddies want that.
Surprised that ARMs aren't making a comeback, negative rate for first year with an escalator tied to price of steak.
I'm surprised the markets & banks are still open, I mean how long do they think this debt charade will last?
"Where's the Beef??"
lol... and if he did... watch them all go from spending 40-50% in an apartment ... to no apartment and homeless because it's not profitable to rent anymore
Because of rent control, landlords in in the 70's burnt Brooklyn to the ground to cash in on the insurance because they were losing money on their rental houses.
That's where doctors are headed with gubmint Medicare reimbursements. Gubmint wants the minimum wage increased - except for doctors who must lose money on gubmint health care - negative wage.
It's so sad that doctors will have to settle for the Benz E-class instead of the higher S-class next year, all due to those Medicare cutbacks.
The GREAT news is that we are importing PLENTY of Kenyan "doctors" to work for minimum wage under Obamacare. They're gonna LOVE pokin their fingers up your butt. They won't be able to diagnose anything but they'll poke your butt.
The only doctors getting rich anymore are the corrupt ones. Most private doctors in small practices are now struggling to keep their practices open. Hospitals are buying up small practices and employing more doctors. Hospitals are becoming "health systems" and insurance companies are consolidating left and right due to Obamacare. Small physician practices that won't comply with government regulations to implement expensive electronic Health record systems and report data to the government are facing reduced payments. They have reduced negotiating power with insurers and are being cut out of networks.
Missing Inflation ? Dude, everyone who lives here knows there's nothing missing in the inflation department. Motor Oil, Transmission fluid, Milk, Beef hot -dogs; annual rate about 8.5% plus; and it'll accellerate. The joke is on the people who don't understand that their .gov bond that pays 2-1/2% is always, always going to be paying off in dollars that lost MORE THAN 2-1/2% in purchasing power. "Bonds= "Instruments of guarant eed confistication"; and the mechanism of the confistication is the devaluation of the currency. The sooner you get that straight, the better.
Its what happens to real estate when it is the only remaining collateral in a country. Its valus HAS to keep rising to keep the collateral fouindations underpinning the country's debt from detonating.
The central banks have asset-stripped the remainder of the country to the bone. There is no other collateral worth anything they haven't yet rotted out. That's the next project Miffed.
That's the scariest comment I've read in a while.
Not completly. They still haven't monitized the national parks and grand canyon. Yet.
The thing is simple, very simple, I will draw for you:
Interest rate "0".
Large conglomerates can not sell their products abroad.
Insane wars, more than 1,000 bases around the world trying to preserve the hegemony of the coin.
Within the territory, all seeking some profit.
Gold and silver not buried yields interest, real estate yes, if rented!
The increase in rents is a sink, is a country down the drain.
State's own eating meat.
: - /
Bullish in America....land of the #Slumlords
There is no inflation, just ask the BLS, they will tell you. /sarc
I prefer to use shadowstats.com or chapwoodindex.com as a true barometer of what inflation really is.
My local McDonald's does a pretty good job of telling me where inflation is. Over the last 5 years, I've seen the double cheeseburger go from $1, to losing a slice of cheese (the rebranded "McDouble"), to now costing me $1.40. Figuring in that the cheese was 10 cents of burger value, I'm putting the 5 year inflation rate at about 50%, or about 10% a year since QE began. My income has increased 10% over that same time period, and that was relatively fortunate on my part.
Yep; the purchasing power of your dollars has declined; and the rate of decline will increase, and that's not even counting the new tax called "Obamacare". Markets are sticky; the prices get stuck in ranges and then they pop loose and make big changes. It's a hundred percent mass psychology; what's going to pop next ? The Metals. Nothing is more under-priced than Silver Bullion. When the reality of inflation sinks into the mass mind, and it will; the new meme will be, "buy metals". Silver always goes up more in percentages than gold and is not of such vital interest to the Central Bankers. Just a word to the wise.
They've also replaced the meat with pink slime and halved the size. Remember when the slogan "more burger than bun" was in fashion back in the '70s? Not anymore.
McDonald's priced themselves out of my shitty diet. Over the last two or three months, the price of double hamburgers has incrementally increased from $1 to $1.19 and large iced tea from $1 to $1.99. Medium fries steady at $1.89. A meal that cost me $5.44 including tax three months ago is now $6.90. Now I go to Arby's when I get fast food.
You guys are fucked. Bringing up McDick's prices??
Well, I like McDick's and I am not ashamed to admit it. I had McDo's drive through today, in fact. I am not a health nut and I am not about to kid anybody. Why not complain about how lame the toys are in the Happy Meals and the watered down fountain drinks while we are at it?
You guys whining about the lack of fake cheese and fake fries. I had a double-quarter pounder. Maybe you guys should try their salad menu instead.
....Zero McDonalds in #Eritrea
on an absolute basis, asking rents across the US have never been higher
Fudging of economic statistics in the land of the free has never been higher either.
Every statistic about the US economy is now a lie as David Stockman looks at 5.5% unemployment:
At the present time, there are 210 million adult Americans between the ages of 16 and 68—to take a plausible measure of the potential work force. That amounts to 420 billion potential labor hours, if we accept the convention that all adults are at least theoretically capable of holding a full-time job (2,000 hours/year) and pulling their share of society’s need for production and work effort.
By contrast, during 2014 only 240 billion hours were actually supplied to the US economy, according to the BLS estimates. Technically, therefore, there were 180 billion unemployed labor hours, meaning that the real unemployment rate was 42.9%, not 5.5%!
Yes, we have to allow for non-working wives, students, the disabled, early retirees and coupon clippers. We also have drifters, grifters, welfare cheats, bums and people between jobs, enrolled in training programs, on sabbaticals and much else.
http://davidstockmanscontracorner.com/the-warren-buffett-economy-why-its...
Inflation in the land of the free is not so phantom as the Fed assumes - Chapwood Index shows real inflation in US. In 2014, it was 9.7% - 1212% of official US inflation (0.8%)
http://www.chapwoodindex.com/
Forward - to more lies
The problem is that job 50 years ago is not a job of today.
If we take a unit of job to be paying enough to support 4 member family as it was standard in 50-ties unemployment would be about 65% and if we eliminate revolving credit contribution to income it would be 75% in comparison to times of growing egalitarian economy and maintaining standard of living.
Unfortunately US economy is permanently cascading down from crisis to crisis into abyss of third world standard of living or rather dying.
The problem is that job 50 years ago is not a job of today.
If we take a unit of job to be paying enough to support 4 member family as it was standard in 50-ties unemployment would be about 65% and if we eliminate revolving credit contribution to income it would be 75% in comparison to times of growing egalitarian economy and maintaining standard of living.
Unfortunately US economy is permanently cascading down from crisis to crisis into abyss of third world standard of living or rather dying.
Let me be clear, there is no inflation in plastic crap from China or electronic toys...
There is massive inflation in anything required for a decent standard of living (like a nice rental in a nice neighborhood).
So long as the population is at or above 7+ billion, there will be plenty of demand for nice digs...
At least there's bright news: if Ford financed your new vehicle and you can't make the payments, they'll rent it out for you:
http://www.thestar.com/business/2015/06/24/ford-motor-launching-car-shar...
American top-shelf financial innovation... we're #1!
fuck, that is scary. The human population is so fucked at this point.
So the solution is to buy a little plactic toy house from China.
maybe henry was right about the tribe.
Yep, wherever they show up.......
And if there is money being made, you can rest assured they have positioned themselves somewhere between the person making the good and the person buying that good.
Prolly, either that or legislate I will huff , and I will puff, and I will blow your house down.
"Same as it ever was" - see what I did there? ;-)
It seems to me there is inflation in plastic crap from China, etc...
Chinese plastic crap, (tools, etc) used to be way cheap but useable and worth the dough. In order to keep prices down the chinks have cheapened their own chink branded products to the point they're unusable out of the box.
Foreign name branded stuff is OK sometimes...
"The rent is too damn high!"
For reals
Food, energy and rent are all totally un-important in terms of inflation, at least that's what I've heard. </sarc>
Don't forget "health care."
C'mon, that's only one-sixth of the US economy
they don't measure health care anymore because there's nothing healthy about it
What health care? No one can afford that. CON-Gresz is not on ObamaCare and Ted Cruz is on Goldman Sachs healthcare courtesy of his wife.
The Jonathan Pollard Zio-Con conservaives at Free Republic think Cruz is the next Reagan. The Bushhh klan tried to whack Reagan then they prioned him aka Alzheimers. It's been over since the civil War but Reagan did not like NeoCons. Regan was against the USSR Nudelman type now running the USSA.
Where does Janet (2%) Yellen expect $4 trillion to go?
Actually, she KNEW it would go into real estate, and did it EXACTLY for that reason, to save all her banker and bureaucrat friends, the nexus of which is THE FED.
Duh.
The good news is you can still get a refrigerator box from one of the foor models at Lowes and Home Depot. So at least we have that going for us in Obamaville.
Ha, I've got you beat! I have numerous sheets of galvanized roofing. Everyone is going to be at my box making deals.
Miffed;-)
The working class folks and renters in Colorado are getting a shock for voting for pot. Rents have been going up a lot.
Miffed - "sheets of galvanized roofing"
You just solved NYC's housing problem. We will replace the Projects with Favellas.
How would anybody know what Q99X2s after tax income is?
I guess by income numbers I can't afford where I'm at, thanks to ZIRP.
What is reality? I ask myself these crazy questions every day.
MY reality is that I am making less than ever before on my rentals, (South Florida Aera) because my costs keep going up, fucking fees, taxes, the little repair here and there, eat up a larger and larger share of my profits. I dumpped one of my propertities late last year over continous raises in fees and fucking "one-time" assessments.
I do all of the work, take all of the risk, and the fucking associations make more of a profit on the rentals than I do!
Useless paper-pushers (bankers, financiers and their lawyers and politicians) make the laws. You don't thin that they are going to make those those actually favor someone doing real work to provide a real product or service do you?
The funny thing is, these fuckers always seem to slit their own throats every 50 years or so.
Get long sharecropping and guillotines, beat the rush.
+1 for this and it is a truth.
"these fuckers always seem to slit their own throats every 50 years"
They make the rules that are so imbalanced that they can never lose. If at 2% (Keynes magic number) more than the normal person YOY after 50 years it kicks off. because they own everything again. Now taking 0.05% instead you get to 4x the time before you start it off all over again.
Priceless in a way, knowing they do get come uppence ... violent and brutal is all good.
Yeah, that whole violence part is kinda creepy.
Who amongst us is willing to kill their wealthy landlords...in front of their nine and ten year old children...because they can't afford to make their rent payments in a timely manner?
"Take the kids to the next room, so they don't have to watch this."
One might simply start by asking how many people in America have the apptitude to kill efficiently in the first place (now remind me, how many years has this country been at war? Unlike WWII, all these veterans came back...)
My point was to suggest that it's rather absurd to advocate extreme acts of violence simply because one can't afford to meet the contractual obligations of a lease agreement.
Can't afford to pay your rent? Simple solution. Just go kill your landlord. Then you get to live rent-free with no adverse consequences.
No need, I suggest you do a little homework on how long people have been squatting in underwater homes around the country.
So it comes down to enforcement of existing property laws. Who is the rightful owner of said property?
That sounds to me like a Civil matter. The possibility of law enforcement becoming involved, with that involvement including the servicing of eviction notices, becomes more apparent.
Is THAT where the violence begins?
Instead of killing your landlord, you can go all the way and kill your local deputy sheriff.
You can blame the guy who shave down a 2X4 so it would look pretty at the store and then never to be seen again, heard from yes, but not seen, oh yea he's already dead so that won't work.
Sell everything while you still can and slam it all in Silver Bullion held in a foreign country; keep your passport up to date; and no, I'm not joking.
reality in not always fun
Old long bed pickup truck with a bed cap and a mattress. That, or living in a van down by the river. Options people!
exactly....hook up the tv and x-box to a portable generator and away you go !
.... beats livin in a FEMA camp barracks .
Don't need a generator if you are in the back of your pickup. Just hook up an inverter to the battery and run the truck's engine to recharge...
See, I saved you $300 (or $159 at harbor freight with a coupon)
Not bad! Maybe save the gas and get a solar panel, charge controller and another battery to hook up to that inverter. More costly up front but it'll pay for itself soon enough. Shed has one already so I can sees in the dark. That harbor freight stuff is mostly garbage but as long as your life or safety isn't involved in what you're buying, usually fine for light duty use. "Cheap Chinese junk for less!"
Extra batteries and fuel on the cheap.
Find a cell phone dead area and plant some nails after dark.
Might even get something on the side for the ride.
i guess the fed doesn't buy milk.
the idea that there should always be inflation is f'ing ridiculous and what is wrong with modern society. delation will come one way or t'other.
maybe what they should do is nationalize all the excess real estate and have government-based, rent-controlled residency. We can call it something catchy like FEMA Woods, or FEMA Brook, or FEMA springs...
Deflation "isn't allowed" because the value of the hard assets of the money masters would go down, and with inflation they can skim value off the top using that new money they create from thin air. By the time it "trickles down" to us the cost of milk and burgers has already increased, for example.
Inlfation is definitely one of the things that's wrong with modern society; it's a modern invention; for over two hundred years the price of basic food-stuffs remained the same under real money. Fiat currency and the power to manipulate it is always used to create inflation; that's really why it exists; so the government can spend money it doesn't have.
They buy milk, but they aren't going to s tart talking about the realities of their little fiat dream world any time soon. Naturally they produce only propaganda as an output product.
If everything is as bad as you say there'd be more Social Unrest . . UNLESS . . .
nothing a bag of cheetos, a six pack and some kardashian cleavage cant buy for another day.
egypt overthrew their dictator when the average person went from two bowls of soup with bread per day to only bread. its a ways to go still. breaking down the hope that exists as each piece of freedom and independence is taken away is waht takes so much time.
its only when soldiers are living in your home do people rise up, a la 1773
Unless there's Valium in the McDoubles?
Half of all americans lose under the fed's housing "wealth effect" doctirine.
Maybe it is time to retry the Cabrini-Green, Pruitt-Igoe approach to solving these people warehousing problems. We are afterall 50 more years into the future and progress means we can manage it right this time with enough funding.
If you read Agenda 21 - those projects will be the high rent dIstrict
"Solving?"
To "solve" means to conclude something, PERMANENTLY! The underlying ISSUE is that of GROWTH. We're on a FINITE planet, which means that it is IMPOSSIBLE to "SOLVE" anything, least of which has to do with increasing anything without end...
Burn down your cities and leave our farms, and your cities will spring up again as if by magic; but destroy our farms and the grass will grow in the streets of every city in the country.
William Jennings Bryan
Read more at http://www.brainyquote.com/quotes/quotes/w/williamjen402507.html#XOebwYW...
Housing is so over-rated. /s
just about every fuckin thing in this world is over-rated.
Somebody tell Paul Krugman...
just paid 28 bucks for a car emmission test what a crock of sheeeit on top of the 16 bucks for inspection.. and I dont EVEN want to mention Grouind beef...Fuck me...
Get back to work and stop complaining!
No Ground Beef for you. Have your Ramen noodles and like it serf! /sarc.
Guess what also, government demands ever more taxes then rents will go up to pay for the taxes.
If anything the renters pay the landlords taxes.
Can we have WW3 now, stuff the consequences because it just feels right for the needed human culling globally to get away from this shit.
Soon dont rush it
George Soros: WW3 may start soonhttps://www.youtube.com/watch?feature=player_embedded&v=qvQkMlq3HjU
So they buy homes instead...
Are you worse off from 5 years ago?
Are you better off from 5 years ago?
Tricky question.
That is about the time I got divorced.
Same here.
Why is divorce so damn expensive? 'cause it is worth it.
Well, that's tough. 5 years ago I was 20. I made $30k. Now I make $90k. Sometimes it's shitty, sometimes it ain't.
as a percentage,what did you take home?
Yep. I reckon it's comparable or slightly worse in the UK. Rent as a fraction of average household after-tax earnings in the outskirts of London is going beyond 50% right now by my calculation. If a person has the median income across the whole of the UK, it is actually 70%. I don't have the foggiest idea how anyone can live on what's left, especially if they have kids in the picture.
Tax credits, benefits and a convoluted system of bits and pieces from the state's begging bowl are probably essential for the vast majority of people on low wages. It is this dependency that I find sickening, creating vast swathes of the free shit army doing what they are told, consuming what they are handed and ultimately lending their nodding heads to the farce of democracy to elect the same criminals over and over again.
Thank you. After taxes, housing, utilities, healthcare, student loan payments, car payments, various insurance bills...nothing left for most people. The system is designed to turn everyone into a wage slave just to have a roof over their head and food on the table.
Government inflation measures are nonsense as are commodity price levels when measuring inflation for the 70% of the economy that is consumer. For most people, wages over the past 5, 10, 20 years have not kept up with rising costs of big ticket items like housing, healthcare and education. That is all that matters. And all the people who say taxes are lower are fools because they never count state income taxes, sales taxes, telcom taxes, property taxes, etc, etc, etc. Nor do they count the Federal debt owed per person in the US which is basically a tax that hasn't yet been paid. $18 trillion divided by 300 million people is more money than most people have.
Central banks would like to convince people that everything that has risen in price is actually more affordable because with low interest rates the monthly carrying cost is lower. That's all garbage, as the debt is permanent. Better off to pay a lower price for an asset during a period of higher rates, then refi if/when rates drop.
If you have the latest AAPL ver.? cellphone & app,
go take a flying fuck, if not...
I apologize.
We hear it so often from the CNBC bobbleheads: "If QE is so dangerous, where's the inflation? See, you were wrong and we were right! Money printing does NOT cause inflation." Amazing, huh? The exact same idiots who spew that nonsense are sitting in front of charts and graphs, EVERY DAMN DAY, that show INFLATION, and lots of it. INFLATED STOCK PRICES, INFLATED BOND VALUES, INFLATED REAL ESTATE (Jeez, has anyone looked at home prices in San Francisco and New York City???)
So here is the good news: if the markets are allowed to clear, if some real price discovery sets in, if we can have a genuine price-of-money again...then the losers will be the speculators and money renters who have ridden this massive tide of inflation in asset prices to the top and topper and topperer levels. I just can't believe that Punxsutawney Janet and her Inner Circle will let that happen.
Somehow, all of the deflation of the asset bubbles will get spread around to the regular guy, the same poor old schmucks who can't earn a dime on their savings as it is.
CNBC pukes don't believe Jim Grant when he spells it out for them.
Yes, and the Da Vinci Code was not a work of fiction.
Give it up. There's no "there" there. Just far-right paranoia.
ah, finally a chart that is somewhat useful.
rent/income & income/rent, with component costs?
which way are the natural resources moving?
what is left?
how is money circulating?
and Bernie Sanders has what for an argument?
funny, when we were moving politicians from military manufacturing to the servi/informaion economy back in the 80s, training all the critters on GPS, I built a quick one as above. The civil side of the US Navy didn't like it. And wouldn't you know it, HP exploded with make-work employment, along with all of the accounting consultants. What was that gal's name at HP?
Bimbo.
Rentier Income [see Michael Hudson blog] is growing exponentially due to the fact that one does not have to pay income tax on rentier income, or Capital Gains Tax.
Cha-ching!
the American Dream. How could anything go wrong?
Inflation is always monetary effect and should be calculated as such. Otherwise, you are conned in the usual AmeriCon way.
Sorry if folks missed the memo! Food, Shelter and Water! Now back to standing in line for that new iCrap thingy....
“The “missing” Inflation Solved: … US Renters Can’t Afford Housing”.
But this is just a very tiny factor regarding the missing inflation.
The balance of the “missing” inflation is found in US Treasuries bought by foreign private and official institutions; that is, foreign banks, central banks and private investors.
By such purchases, they import inflation into their countries that otherwise would occur in the US.
When they liquidate their holdings, that’s when we will see monetary storms unprecedented in human history; including destruction of most of the world’s banking systems.
Who are the major buyers?
As of March 2015 (in billions): China: 1,261 (counting nominee buyers: $1.5-$2.0 trillion); Japan: 1,227; Belgium: 353; Caribbean Banking Centers (Congressmen stuff their booty here): 293; Oil Exporters: 297; Brazil: 262; UK: 201; Switzer: 212; Hong Kong: 181; India: 108: Russia: 70; and on and on…)
All these numbers represent the attendant inflation that goes with baseless increases in the money in question.
And they all represent a huge mortgage on all US property, whether Americans know it or not.
And these foreigners know what it means: a monetary conquest of America.
It is not, will not be, an ordinary conquest; it has been an on-going operation for more than a hundred years. An early clue (not the first) appeared in the London Times, “If this mischievous financial policy, which has its origin in North America, shall become endurated down to a fixture, then that Government will furnish its own money without cost. It will pay off debts and be without debt. It will have all the money necessary to carry on its commerce. It will become prosperous without precedent in the history of the world. The brains, and wealth of all countries will go to North America. That country must be destroyed or it will destroy every monarchy on the globe.” -- The London Times responding to Lincoln's Greenback notes”
I found additional evidence of this “conquest” in publications of the US government and Federal Reserve, of all places.
I recently examined a Financial Report of the US Government. I found, for example, that government accountants made 75-year projections as if the government would not pay interest on its debt instruments during that time.
And then there were street gangs and drug cartels, the government’s – and China’s – role in arming, protecting and forming alliances with such gangs and cartels… and a dozen or so other items. They all point to a conclusion that a vast operation is being perpetrated… I began this Part 2 (of my examination) with the question, ‘What financial shock do Judeo-Bolsheviks plan?’ (Part one and Part two) Do they plan to inflate the dollar to zero… push stocks to PE ratios of 300, then slam them to a ratio of single digits or even minus numbers… repudiate the federal debt… replace Federal Reserve bank notes with Treasury bank notes…?’ And, how do China’s ghost cities fit into this unprecedented operation?
And, when will they pull the plug?
As I’ve noted, Americans are a conquered nation; not by ordinary warfare, but by a lethargy induced by medication, an ignorance molded by indoctrination, to name only a few degradations.
The Piper is idly standing by, waiting for the right moment to present his invoice.
"Judeo-Bolsheviks"? Roflsnort. GTFOOH.