OASIS FORUM Post by the Golden Rule. GoldTent Oasis is not responsible for content or accuracy of posts. DYODD.

@goldilocks hi re your Calif a home worth about 50 k back then is worth about 6-700 K today.

Posted by Mr.Copper @ 15:19 on November 22, 2021  

Its my view that the $6-$700 k house has not kept up with inflation. The simplest thing to calculate is a fresh made slice of Pizza. Never modernized the production, simple labor and materials. .15 cents, times 20 is $3.00/ slice today about right. The other day I had one with sausage on it, $4.00/slice.

Around here the r/e market seems to have cycles 7-8 years up and 7-8 years lower for decades. Real estate rocketing is really trying to play catch up.

Poor Jimmy Carter  1977 to 1981, had absolutely  NOTHING to do with what happened with the economy back then. Many widely held beliefs are wrong. The Fed took the gold backing off the dollar 1971. Dopey/Dollar dropped like a rock re commodities. Oil Gold Silver etc etc were climbing fast. The Fed raised rates 6% to 21%  ’71 to ’81 about to slow down rocketing prices. By 1981 things got bad. “71 to ’81 houses here stayed flat at $40k, 10 years. The dow was flat 1968 to 1982 under 1000.

To get inflation numbers down the busted the unions and started importing artificially cheaper goods. Lots of people lost jobs and took 40% pay cuts at new jobs. The TRUE inflation increase of money supply was 1934 to 1971. Resulting in higher prices ’71 to ’81. But after 1971 they pulled OUT money supply with high rates. Like a big sponge mop.

A lot of the excessive high money supply went into gold and silver ’71 to ’81 and then the 18% CD rates kicked in, crashed AU and AG and all that money supply evaporated. Enabling the Fed to start increasing money supply again after that.

Think about all the excess money supply going into stocks and real estate bit coin and bonds. recently If those markets crash a HUGE evaporation of money supply will happen again. The Fed will LOVE that, and start a new game. That MIGHT need a new system with Gold backing. Very little money going into AU AG. All the other stuff is attracting it.

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Post by the Golden Rule. Oasis not responsible for content/accuracy of posts. DYODD.