Why is lumber so expensive?Posted: June 14, 2021
The Price of Lumber
Why is lumber (and everything else) so expensive right now? Explained here by George Gammon
If the financial economy fails, then so does the real economy.
This doom loop catastrophe is quickly snowballing into a productivity problem that will not end well, here’s why…
There Is No Real Economy!
Currently, the real economy is living on life support. Quite literally. Take the real economy off the government debt machine and it dies.
It’s already happening…
There’s been so much supply destruction and disruption that producers cannot keep up with demand so consumer prices are pricing it in, right now.
Here’s where it gets scary…
The stimulus must continue at a faster pace, and with larger and larger fiat injections or the whole economy collapses.
Producers will be unable to keep up…
The stimulus must continue at a faster pace, and with bigger injections.
The probability is critically high that the producers of goods will not be able to keep up with these government injections.
At some point, there will be so much loose fiat money chasing after the same scarce goods and services, that prices will be astronomical. This is the death blow.
Supply destruction and disruption are not transient. It’s not offline on Monday and back online by Wednesday. It takes years, and capital, for some supply chains to recover, retool, and relocate.
Now is the time to start stockpiling real stuff.