Skyrocketing Lumber Prices Have Increased The Average Price Of A New Home By $35,872 In 1 Year

Do any of you remember when you could buy an entire house for $35,000?  There was a time in America when middle class Americans could buy a house and have it paid off in just a few years.  But now existing home prices have soared into the stratosphere, and lumber prices are making it ridiculously expensive to build new homes.  As you will see below, skyrocketing lumber prices have driven up the average price of a new home in the United States by almost $36,000 over the past 12 months.  That is absolutely nuts, but everyone agrees that even more inflation is on the way.

Of course it isn’t just lumber prices that are going haywire.  In California, the price of gasoline has almost reached five dollars a gallon in some areas, and the price for premium gasoline has almost reached six dollars

Gas prices continued to increase in or around Southern California for the ninth day in a row. And that appeared to be a similar trend nationwide where other states were seeing an increase as well.

The average price of a gallon of regular gas in the Beverly Grove area on Saturday was $4.99 and $5.99 for premium.

We are being told that one of the reasons why the price of gasoline is spiking is due to a lack of tank truck drivers

According to the National Tank Truck Carriers trade group, up to 25% of trucks are parked around the country because there are not enough qualified tank truck drivers. That number is up 15% from the beginning of last summer.

The demand for drivers took a hit when pandemic-induced lockdowns triggered steep declines in the gasoline market, and drivers opted for other jobs. However, the return to pre-pandemic numbers has been further undermined by unemployment benefits and stimulus checks keeping people away from jumping back into the workforce.

You can thank our politicians in Washington for this mess, and hopefully the driver shortage will just be temporary.

But if you think that the price of gasoline is bad now, just wait until the big war in the Middle East officially starts.

On Monday, the price of lumber continued to escalate dramatically.  According to the Wall Street Journal, lumber futures are now “more than four times the typical price this time of year”

Lumber futures delivery later this month ended Monday at $1,575.60 per thousand board feet, a record and more than four times the typical price this time of year. Futures rose by the daily maximum allowed by the Chicago Mercantile Exchange during nine of April’s 21 trading sessions.

But don’t worry, because the Federal Reserve insists that they have everything under control.

Hopefully they are on top of things, because we are rapidly getting into crisis territory.  As I mentioned above, rising lumber prices have driven the average price of a new home up by nearly $36,000 in the last 12 months…

Skyrocketing lumber prices that have tripled over the past 12 months have driven the price of an average new single-family home to rise by $35,872, according to new analysis by the National Association of Home Builders (NAHB), with the price spike threatening to hobble the momentum of the U.S. housing market, one of the bright stars of the recovery from the pandemic recession.

Thanks to the completely and utterly insane policies of our “leaders”, high inflation is here to stay, and it is going to be exceedingly painful.

At this point, even Warren Buffett is acknowledging that inflation is starting to become a major problem

BECKY QUICK: I will ask this question from Chris Freed from Philadelphia. And whoever wants to take this on stage, “From raw material purchases by Berkshire subsidiaries, are you seeing signs of inflation beginning to increase?”

WARREN BUFFETT: Let me answer that, then Greg can get more into that. We’re seeing very substantial inflation – it’s very interesting. I mean, we’re raising prices. People are raising prices to us. And it’s being accepted. Take home-building. I mean, you know, the cost of– we’ve got nine home builders in addition to our manufactured housing operation, which is the largest in the country.

So we really do a lot of housing. The costs are just up, up, up. Steel costs, you know, just every day, they’re going up.

Flooding the system with trillions of new dollars was a really, really bad idea, but those that control the levers of power did it anyway.

Now we have way too many dollars chasing too few goods and services, and that is driving up prices and causing widespread shortages.  The following comes from an article about those shortages that was just posted by the Wall Street Journal

Consumers are splurging on cars and furniture—and facing extended waits for delivery. Restaurants and gyms are reopening—and struggling to find workers. Factories and home builders are trying to ramp up—but are short on semiconductors or raw materials.

Our “leaders” are promising that the shortages are just temporary.

And they are also promising that the price spikes are just temporary too.

If everything that they are saying is true, everything will go back to “normal” eventually.

Do you believe them?

In Venezuela today, just about everyone is a millionaire.

But just about everyone is also living in poverty because the currency is essentially worthless.

For years, pundits have been warning about “the death of the dollar”, but now our “leaders” seem determined to murder our currency as rapidly as they can.

I wish that I could say that there is a quick and easy fix to this mess, but the truth is that there is no going back now.

The Federal Reserve has got to keep pumping more money into the financial system or the stock market will crash.

And the federal government is going to continue borrowing and spending trillions of dollars that we do not currently have in a desperate attempt to keep the population happy.

This story is heading for a very tragic ending, and if you can’t see that by now I don’t know what else to say.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe.  I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions.  I encourage you to follow me on social media on FacebookTwitter and Parler, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.

Get Ready For The Most Painful Inflation Since The Jimmy Carter Years Of The 1970s

If you are too young to have been alive during the 1970s, you might want to read up on that decade, because current economic conditions are starting to become eerily similar to what we experienced back then.  In the 1970s, an energy crisis caused tremendously long lines at gas stations all over the country.  In 2021, we don’t have a shortage of gasoline, but shortages of other key products are starting to cause very serious problems.  In fact, as you will see below, even the Biden administration is publicly admitting that there will be “supply chain disruptions” in the months ahead.  The 1970s also featured extremely painful inflation, and I certainly don’t need to tell you that prices have been rising very aggressively lately.  In fact, Bloomberg is using the term “skyrocketing” to describe the “upward trajectory” of commodity prices…

The prices of raw materials used to make almost everything are skyrocketing, and the upward trajectory looks set to continue as the world economy roars back to life.

From steel and copper to corn and lumber, commodities started 2021 with a bang, surging to levels not seen for years. The rally threatens to raise the cost of goods from the lunchtime sandwich to gleaming skyscrapers. It’s also lit the fuse on the massive reflation trade that’s gripped markets this year and pushed up inflation expectations. With the U.S. economy pumped up on fiscal stimulus, and Europe’s economy starting to reopen as its vaccination rollout gets into gear, there’s little reason to expect a change in direction.

Over the past year, the Federal Reserve has pumped more money into the financial system than ever before, and the U.S. government has been on a wild spending spree that makes Zimbabwe look fiscally conservative.

It was inevitable that this was going to cause rampant inflation, but the numbers that we are starting to see are so crazy they are difficult to believe.  A couple weeks ago, Charlie Bilello posted a summary of how commodity prices have changed over the past year…

Lumber: +265%
WTI Crude: +210%
Gasoline: +182%
Brent Crude +163%
Heating Oil: +107%
Corn: +84%
Copper: +83%
Soybeans: +72%
Silver: +65%
Sugar: +59%
Cotton: +54%
Platinum: +52%
Natural Gas: +43%
Palladium: +32%
Wheat: +19%
Coffee: +13%

At this point, nobody can deny what is happening, and even the Biden administration is admitting that there will be “supply chain disruptions” and “transitory increases in prices”…

Council of Economic Advisers chair Cecilia Rouse said on this week’s broadcast of “Fox News Sunday” that they expect to see some “transitory inflation” as America is coming out of the coronavirus pandemic.

Anchor Chris Wallace said, “Can you guarantee with all this spending that we are not going to have a new round of overheating the economy and serious inflation?

Rouse said, “These are very serious concerns, and we know that coming out of an extremely deep recession that there are going to be bumps along the way. We expect that there is going to be supply chain disruptions. That will cause some transitory increases in prices.”

Biden administration officials would like for us to believe that this inflationary period will just be “temporary”, but exactly how do they plan to achieve that?

Do they have a plan to somehow pull trillions of dollars out of the system?

No, they are planning to borrow and spend trillions more.

In the 1970s, double-digit inflation made headlines for years on end.  Many people believe that we are well on the way to a return to such levels, but according to John Williams of shadowstats.com, we are already there.  In fact, if inflation was still calculated the way that it was back in 1980, we would already be in double-digit territory.

And for certain items, we are already seeing inflation that is off the charts.

For example, the price of corn is up more than 30 percent so far in 2021…

From tortillas to cornbread, some of your favorite corn-based dishes may go up in price late this summer.

Corn has been leading the rally among grain commodities, rising more than 30% in 2021, according to MarketWatch.

Corn is used in hundreds of different products at the grocery store, and so this is going to dramatically affect the food budgets of millions upon millions of American families.

Meanwhile, we continue to see more shortages start to emerge.  Last week, the mainstream media was freaking out over our new nationwide chicken shortage

A chicken shortage is taking place across the country, much of it fueled by the chicken sandwich craze at fast food chains such as KFC and Bojangles, which are having a hard time keeping up with soaring demand. Experts say February’s massive winter storm in Texas also contributed to gaps in the supply chain.

That shortage is supposed to be “temporary”, but analysts are warning that the current computer chip shortage could last until 2022.

But despite all of the problems that I just detailed, Americans are increasingly optimistic about the future.

In fact, one recent poll found that a whopping 64 percent of all Americans “are optimistic about the direction of the country”

Nearly two-thirds of Americans (64%) are optimistic about the direction of the country in the poll, which was conducted by Ipsos in partnership with ABC News using Ipsos’ KnowledgePanel.

And Americans are also extremely optimistic about the stock market.  If you can believe it, Americans now have more of their assets invested in the stock market than ever before

Individual investors are holding more stocks than ever before as major indexes climb to fresh highs. They are also upping the ante by borrowing to magnify their bets or increasingly buying on small dips in the market.

Stockholdings among U.S. households increased to 41% of their total financial assets in April, the highest level on record. That is according to JPMorgan Chase & Co. and Federal Reserve data going back to 1952 that includes 401(k) retirement accounts.

Most Americans seem to believe that happy days are here again, and the stage is set for an immense nationwide emotional meltdown once this “bubble of hope” inevitably bursts.

Anyone that believes that things are going to get better has a fundamental misunderstanding of the times in which we live.

We have just been through the most painful year for the U.S. economy since the Great Depression of the 1930s, and I know that most people would like to see things turn around, but that simply is not going to happen.

Very dark days are ahead, and those that are trusting Joe Biden to save America are going to be bitterly, bitterly disappointed.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe.  I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions.  I encourage you to follow me on social media on FacebookTwitter and Parler, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.

The Corn Is Dying All Over America

All over America the corn is dying.  If drought conditions persist in the middle part of the country, wheat and soybeans will be next.  Weeks of intense heat combined with extraordinarily dry conditions have brought many U.S. corn farmers to the brink of total disaster.  If there is not significant rainfall soon, many farmers will be financially ruined.  This period of time is particularly important for corn because this is when pollination is supposed to happen.  But the unprecedented heat and the extremely dry conditions are playing havoc with that process.  With each passing day things get even worse.  We have seen the price of a bushel of corn soar 41 percent since June 14th.  That is an astounding rise.  You may not eat much corn directly, but it is important to realize that corn or corn syrup is just about in everything these days.  Just look at your food labels.  In the United States today, approximately 75 percent of all processed foods contain corn.  So a huge rise in the price of corn is going to be felt all over the supermarket.  Corn is also widely used to feed livestock, and if this crisis continues we are going to see a significant rise in meat and dairy prices as well.  Food prices in America have already been rising at a steady pace, and so this is definitely not welcome news.

The weather conditions in the middle part of the country during the last couple of months have been highly unusual.  The following is from a recent article in the Los Angeles Times….

It’s not that the Midwest hasn’t been extremely hot before, and it’s not that it hasn’t been incredibly dry.

But it’s unusual for a vast swath of the Midwest to be so very hot and so very dry for so very long — particularly this early in the summer.

The current heat wave — which is spurring comparisons to the catastrophic heat of 1936 —  is “out of whack,” meteorologist Jim Keeney said Friday in an interview with the Los Angeles Times.

Corn crops typically pollinate and mature in June and early July.  That is why this time of the year is so vitally important for corn.  We have reached a make it or break it moment.

The following is how an Accuweather.com report described what is happening right now….

Either heat or drought can stress the stalks, but both can basically shut down the pollination process. When this happens few, small or no ears of corn form.

According to AccuWeather.com Agricultural Meteorologists, you can’t raise a corn crop with less than an inch of rain over six weeks, combined with 100-degree and higher temperatures. However, these conditions have taken place in much of the southern corn belt through the week of July 4, 2012.

If pollination does not happen, corn farmers might as well give up.

Just check out what agricultural economist Chris Hurt said the other day….

“Pollination problems just can’t be overcome, even if the weather turns. There’s no turning back. There’s just failure.”

At this point, half of all corn in the state of Indiana is already in poor shape.

With each passing day, the condition of the corn gets even worse.

As a recent article in the Chicago Tribune detailed, many farmers feel completely helpless at the moment….

Dave Kestel, who farms about 1,300 acres in Manhattan about 40 miles southwest of Chicago, said he feels helpless.

“Every day you get out there and it’s the same heat and cloudless sky,” he said. “You see your corn just withering out there, knowing you can’t do anything about it.”

The United States is suffering from a severe lack of rain.  Just look at the chart posted below.  According to the U.S. Drought Monitor, most of the country is experiencing drought conditions right now….

These drought conditions have also played a major role in the huge number of wildfires that we have seen lately.

There are a few northern states that are not feeling the drought right now, but otherwise the rest of the country is extremely dry.

So what does all of this mean for you and I?

A recent article by Holly Deyo summarized why we should all be praying for rain….

Since 75% of grocery store products use corn as a key ingredient, expect food prices to skyrocket. Corn is also a staple in many fast foods. Corn is in ethanol and the main food source or chickens. In addition to this, maize is in many things that aren’t obvious like adhesives, aluminum, aspirin, clothing starch, cosmetics, cough syrup, dry cell batteries, envelopes, fiberglass insulation, gelatin capsules, ink, insecticides, paint, penicillin, powders, rugs and carpets, stamps, talcum, toothpaste, wallpaper, and vitamins. That’s just for starters…

This is a huge heads up for you to purchase corn-using products NOW before these conditions reflect in grocery goods. It will be a narrow window of opportunity.

These thoughts are being echoed by many agricultural economists as well.  According to Businessweek, the outlook for U.S. food prices is bleak….

“When people look at rising prices for hamburger, butter, eggs and other protein sources from higher corn costs, that’s when more money ends up in the food basket,” said Minneapolis- based Michael Swanson, a senior agricultural economist at Wells Fargo & Co., the biggest U.S. farm lender. “We were hoping for a break, and we aren’t going to get it.”

Unfortunately, the fact that the corn is dying all over America is not just a problem for the United States.

As Businessweek also recently noted, the fate of U.S. corn affects the entire globe….

When rain doesn’t fall in Iowa, it’s not just Des Moines that starts fretting. Food buyers from Addis Ababa to Beijing all are touched by the fate of the corn crop in the U.S., the world’s breadbasket in an era when crop shortages mean riots.

This year they have reason to be concerned. Stockpiles of corn in the U.S. tumbled 48 percent between March and June, the biggest drop since 1996, the U.S. Department of Agriculture said last week. And that was before drought hit the Midwest.

The United States is the world’s biggest exporter of corn by far, and if there is a massive corn crop failure in America it is going to be felt to the four corners of the earth.

Just check out what Abdolreza Abbassian, a senior economist with the U.N. Food & Agriculture Organization, said the other day….

“Everyone watches the U.S. because they can rely on it. Without it, the world would starve.”

Back in February, I wrote an article that suggested that we could see dust bowl conditions return to the middle part of this country in the years ahead.

A lot of people were skeptical of that article.

Not quite as many people are skeptical today.

The following is from a recent article posted on MSNBC entitled “Fears of new Dust Bowl as heat, drought shrivel corn in Midwest“….

Crop insurance agents and agricultural economists are watching closely, a few comparing the situation with the devastating drought of 1988, when corn yields shriveled significantly, while some farmers have begun alluding, unhappily, to the Dust Bowl of the 1930s. Far more is at stake in the coming pivotal days: with the brief, delicate phase of pollination imminent in many states, miles and miles of corn will rise or fall on whether rain soon appears and temperatures moderate.

As I wrote about last week, if the weather does not turn around soon the implications are going to be staggering.

Even if we got some significant rainfall at this point a tremendous amount of damage has already been done according to the Washington Post….

Jay Armstrong, owner and operator of Armstong Farms in Kansas, flew his small plane over a portion of the affected area and landed with the impression that the potential damage is far worse than is commonly understood.

“At this time of year, when you look down in a place like Indiana or Illinois, you should see just lush green fields,” Armstrong said. “I saw bare soil. I just thought to myself, the market has no idea what’s coming.”

So is there significant rain in the forecast?

Unfortunately, the answer is no.

The National Weather Service says that the corn belt will experience “above-normal temperatures” and “below-normal rainfall” over the next week.

At this point it does not look like there will be any significant rainfall for the foreseeable future….

“We got a break in the temperatures over the weekend but no rain of significance is in sight for next seven days,” said Jim Keeney, a meteorologist for the National Weather Service the US central region based in Kansas City, Missouri.

Needless to say, that is really bad news.

Right now we just have more heat and more dryness to look forward to.  The skies are like iron and the earth is like brass.  We like to think that we have conquered nature, but at moments such as these we see that is not true at all.

A couple of weeks ago I wrote an article about all of the reasons why we should be concerned about the second half of 2012.  In that article I did not even mention drought and crop failures.  Sometimes major problems have a way of piling on top of themselves.

The U.S. economy is already in bad enough shape without adding major crop failures to the mix.  This is something that we just don’t need right now.

But it looks like we are going to have to deal with it.  Unless there is a major change in the weather, food prices are going to go up even more and large numbers of farmers and ranchers are going to be absolutely devastated.

Let us all pray for rain.  We desperately need it.

The Economic Collapse