Our government says there’s almost no inflation? Think again

Shades of Venezuela!

This is what we  get when we let government employees control our lives. Almost 300 percent inflation in lumber in one year. This while we’re being told that inflation is totally under control, running at less than two percent per year.

3/4” Plywood Standard:
March 2020 – $37.98 /sheet
February 2021 – $72.49 /sheet
March 2021 – $83.49 /sheet
April 2021 – $95.98 /sheet
(Copied from a Real Estate site and the price is from Canada)

Lest you think this is an isolated incident, let me quote from an article that came out just last week in my local newspaper.

Shortages of lumber and other building materials have added thousands to the cost of new homes or forced homebuyers to downsize on the home of their dreams, said the Hood County News.

“The lumber spike has added an additional $24,000 to the cost of an average, new single-family home since last April, according to the National Association of Homebuilders. The additional costs are even more for larger homes and those with more upscale amenities.

$80,000 lumber package!

A year and a half ago, a $400,000 home built by his company would involve about $35,000 worth of lumber, said Donny Couto of Couto Homes. Today, that same amount of lumber costs more like $80,000 – and is continuing to rise…. causing some clients to hold off on building or to reduce the square footage of their home.

Couto said that copper, concrete and steel rebar are seeing “significant increases” as well, and there are sometimes delays with appliances, which are often made oversees.

“Everyone is in the same position,” Couto said of fellow homebuilders across the nation. “Everyone is dealing with some kind of supply chain issue.”

Couto said that his company is currently “eating” $15,000-$18,000 per home because prices are locked in once a client signs a contract, but the cost of materials continues to rise during the construction process.

“We’re taking considerable financial hits,” said Couto.

“It’s crazy. Prices are just off the charts,” said Casey Wallace, chief operating officer for Henson Lumber in nearby Cresson.

The cost of the wood panel product Waferboard, or Oriented Strand Board (OSB) – “one of the big items used in new construction” – has risen more than 300% since COVID-19 hit, Wallace said.

The supply chain problems have caused some companies to take “force majeure,” said Wallace.

Force majeure is a clause included in business contracts to remove liability for natural and unavoidable catastrophes that cause disruptions and an inability to fulfill obligations.

In some cases home prices are 30% higher than they would have been if built a year ago, said Will Steed of Will Steed Homes, who has been building custom homes in Hood County and surrounding areas for 22 years.

The article goes on to blame the price increases on supply-chain problems brought on by the pandemic. This is most likely true, but it truly shows what can happen when we let government bureaucrats, in many cases unelected government bureaucrats, dictate our lives.

See entire article, entitled “Pandemic-induced delays in delivering building materials driving up costs”:




28 thoughts on “Our government says there’s almost no inflation? Think again”

  1. Is this increase in Plywood, etc. from the printing of Private Federal Reserve Paper Notes, or from the shortages created by (the same people who control the Fed) Covid?

    There is a difference.

    I, personally, don’t think the 7 Trillion of paper notes, added to the “money” supply has been able to work it’s way through. I see these price increases due to Covid shortages, A certain Demographic getting the hell out of the Democratic Cities, and fake low interest rates.

    The last gasp of a certain Demographic is buying everything and anything to escape other Demographics that are rioting, looting, burning, killing in the Democratic Cities.

    It is fun, while it lasts.

    Unless we are willing to REALLY discuss what is REALLY behind all this, we are totally doomed.

  2. What is this article doing on a weather blog? If I wanted to read this sort of thing I can do so on ZeroHedge. Ditch the politics and focus on the global cooling.

  3. Robert,
    We purchased a new home in January 2020.
    Took possession End of October 2020.
    Base price before any options (more$$$$) is up 24 percent from now till January 2020.

    November 2020 I bought a 500’ roll or 6/2THHN copper wire for 261$ for a spa
    January 2021 same roll 298$
    Now 345$
    Up 32 percent in 5 months 76.8 annualized

    In January I had a meeting with landscaper during which she received a call from her supplier that all concrete products were going up 20 percent.

    Home prices are crazy in Phoenix.

    But inflation is low our government says so.
    Trust them they will fix everything in the 3 Trillion dollar spending bill.

    Regards from Arizona

    • Of course inflation’s low in everything but vital necessities, such as food, motor fuels, medical care, all manner of transportation requirements, and various other assets that nobody thinks about until they disappear from the supply chains. Stock up on guns, ammunition, food (non-perishables), motor fuels, and if you live in a cold climate and have an oil furnace keep the tank topped off.

  4. I recall that years ago, when Ronald Reagan was running for President for the second time, he was condemned, (by the usual suspects), for stating that: “If the environmentalists had their way, we’d all be living in rabbit holes and birds nest.” And, he was, as usual, condemned by the liberal media.

    If costs of materials for home construction continue to incline, rabbit holes and birds nests may become the domicile of necessity for millions of people. All over the world. with Shanghai population densities. And Bombay living standards.

  5. The US government has been lying about inflation for years. This allows stiffing employee’s COLA and retiree’s SSI.

  6. Inflation as measured in the US *is* actually running that low! That’s because they don’t measure things that truly reflect the prices people are paying. They measure a basket of goods which isn’t even standard, because they keep changing the goods in the basket to keep inflation measures down.

    If you want to not experience inflation, simply buy ONLY those goods that are in the basket. If you can find out what they are AND you can stomach them, then you will be fine. For the rest of us, inflation is real, already extreme, and is starting to reflect the insane currency creation which EVERY central bank in the world is now engaged in.

    When the COVID lockdowns finally end, and velocity of money starts to ramp up again, that’s when all this currency creation will start to hit big time. That’s probably why they will keep us locked down for as long as possible….

    • Even buying goods in the basket is not a guarantee of getting the official inflation rate, because they use product substitution. If steak goes up, they assume you buy pork, if pork goes up, they assume you buy tofu, when the tofu goes up I guess you get vegis. This way you can have massive inflation but by assuming you will just use less expensive products they assume no extra cost to you.

  7. Due to being needed for electrical power generation, wood is now too precious a commodity to be wasted on mere peasant shacks.

  8. Hey stupid America – you think getting all those freebies from your government is gonna help you? You’re full of it if you believe that!!

    You’re gonna be paying so much for food and everything else soon that you will hate yourself for voting for Biden and the stupid libs.
    NONE of this will do you ANY good! Many of your jobs will be sent back to China anyway – so for those blue collar workers who voted for Biden will see themselves picking the pavement, unemployed and dumbfounded pretty shortly. Then you will freeze dead in future winters with massive blackouts!
    You shall reap what you sow!

  9. Pouring money into an economy with a flagging output of products and services is a guarantee of runaway inflation. I do not think this is accidental. The USA is slated for extinction.

  10. Looks like all wood products have gone through the roof!
    About a year and a half, I bought a pile of 2x4x96 inch studs for a low price of $2.05 each. I just priced them today and they are $6.75 each! Ouch!

    From: https://www.cnbc.com/2021/02/10/lumber-prices-skyrocket-pushing-up-housing-costs.htmlKey Points

    “Softwood lumber prices are now about 112% higher than they were a year ago and have jumped 10% in just the past week, according to Random Lengths.”

    “Low interest rates are playing into lumber prices, heating demand for housing and giving builders more incentive to increase production.”

    There is more if you read the article.

  11. Food prices are already jumping due to shortages not the ‘buying debt programs’ from the last years, worldwide. In fact stimulated by the UN who’s crying now about her own stupidity.

    • P.S. I quote some website: “This pandemic has been orchestrated right from the start. The United Nations sold pandemic bonds, and if they declared there was a pandemic, they did not have to repay. They fleeced all those investors and now only a mindless idiot would dare buy another. ” Making mistakes is quite normal, but isn’t this something for investigative journalist?

  12. Yea well you know, the price of color TV’s is down, smartphones, and computer games are also cheaper, and electric cars… To be honest, we might be happy that we have some inflation at all!

  13. People don’t understand money very well. The problem is if production stays the same, but everyone is given twice the amount of money – you have to have inflation. The only way the increased amount of money would not cause inflation is if production increased by a similar amount.

    When the government “gives” everybody a $1400 stimulus check, with the money coming out of thin air, of course it will cause inflation. We have been goosing the money supply for years – because deflation is supposedly bad (it is not if we expect reasonable inflationary and deflationary times)

    Top off all the extra money flowing in, with inflation accounting purposely designed to hide inflation (using product substitution, and adding a lot of electronics, which do down due to production improvements, not deflation, and of use using imputed rental values instead of actual house prices)

  14. Enough is Enough… too late… tyranny’s here… so now they’ve set up a trap to snare the militia and/or lone wolf (Tyrannosaurus-Albertosaurus) heroes… should work.

    RCMP Commandeer Grace Life Church Edmonton

    RealTalk WhatsHerFace: Ready To Take Your Life Back?

    Enough is Enough… no it ain’t… cuz it ain’t even started yet.

  15. Govt’s inflation computation admittedly excludes food and energy, so we know it can’t have much to do with the cost of living.

    AFAIK lumber prices are up cuz the covid exaggeration made a great many people feel they would be safer in their own homes than in apts. Advantages: increased physical security and food security (garden & they produced a chick shortage). Those who had been putting off building, moving or adding-on to accommodate reuniting extended family were spurred to go ahead.

    At beginning of 2021, 56% of Americans planned to move– mostly to less populated areas. The exodus which began in 2020 departed from New York, California, Illinois & DC to go to Idaho, New Mexico, and Maine. Those who have the savings to buy lumber are seeking less expensive places to live.

    I wish I could join them, but any long-term safety must be bought by political confrontation.

  16. The price increases has as much to do with disrupted supply chains than the printing of money. Worldwide lockdowns have naturally made shortages inevitable, and of course Humans being Humans there will always be those who try and take advantage of a crisis to line their own pockets by price gouging. The money side of inflation will happen in a year or 2 once all the endless monopoly money has had a chance to work its way through the system.

  17. The real inflation is not really the prices going up even though that is bad enough. The problem is expanding the currency supply by lending currency into existence by contracting debt for what ever reason. Price increases are the side effect not the cause. All accumulated debt is inflation and that is mitigated by debt repayment or default.
    People who use currency get praised, those who use money get bombed and murdered. Gold and silver are money.

  18. I absolutely cannot understand why this administration is encouraging illegal immigrants to come over the border in droves. I’ve seen a number of interviews of these “migrants” were asked why they are coming and the majority appear to be naively assuming there are JOBS here they’ll be able to get. Given how many US citizens have been laid off and how many places have gone out of business… where in h&ll does Biden and his buddies think these immigrants are going to find work? They won’t…

    In the meantime, re: inflation in general… anyone who is as old as me (70) living in the US is apt to remember those times when cost of living was much much lower. I remember in the 70s that my grocery bill (for myself and my young son) was $10 a week! Now I feel like I’m doing well if I can keep my grocery bill down to $100 a week I’m doing well.

    Housing costs too… I remember the year I graduated from high school (1968) my parents decided to move from MA to FL. They sold a nice house (3 bedrooms, 2.5 baths, 2 fireplaces, picture windows in most of the rooms, a nice deck) … on 10 acres of woods and fields. They were asking $50,000 for the property… but the best offer they got was $40,000. They used the money from the sale to purchase a nice house on Vina del Mar island (off St. Petersburg) with a smaller yard but with a pool. Now the same properties would probably go for at least 1.5 million. Ridiculous!!

    Now I am retired, living on a fixed income (a combination of social security, a small pension… and what I’ve managed to save in an IRA). At present I’m doing OK financially, albeit I live modestly and have no debts. However… I was never able to make enough to buy a house (let alone buy a home and pay it off before retiring… which “they” assume we all can do). With that type of runaway inflation as I think we’ll be seeing … I do worry I will eventually not be able to survive on what I’ve accumulated.

  19. Why do we have to pay INTEREST on paper money created an NO costs? Even with this instant Digital “money”, why do we have to pay Interest? To whom?

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