Buffet confirmed inflation raging yesterday .A neighbor told me he got a bid for a deck 3 months ago for $5500 and told the guy go ahead and do it . The guy said the price is now $15 k . As I’ve said inflation is the by product of future expectations more than actual present day costs . So when people feel price rises they try to jump in front of them and raise prices ahead of time setting of a vicious cycle of one upping prices to stay ahead . So when on company see another company raising prices he also raises prices even if he sees much smaller price increases . They see an opportunity to make more money . The fed , sleepy Joe , Trump , and congress have unleashed this monster . Free mkt forces were not allowed to take hold . 5 million homes were not allowed to go into foreclosure the last yr thus we’ve had mass inflation in housing . 10’s of millions of people have gotten unemployment thus never went back to work thus causing a labor crisis which is causing wages to rocket . 200 million people got 3 rounds of stimulus money including 55 million people who are on disability and earn no wages . That’s probably an avg of $8 k plus each when including kids . Low income people spend money immediately thus that’s increased demand big . To sum it up we’re in a vicious loop circle to stay ahead of the flatiron curve . All this because the government refused to accept short term pain . The only way to undo this is a massive recession . Mkt forces must be allowed to work .
