U.S. house price to income multiples begin mirroring those of many socialist and second world nations
It all has to do with QE and the excess generation of US Treasuries
Although I suspect that Numbeo’s preliminary 2024 data may be subject to change as the changes have been substantial, the direction in which these multiples continue to climb are sobering for those who are trying to buy a home or rent. Moreover, high house prices versus household incomes substantially add to overall ownership cost burdens. For those who believe the USD is collapsing, this data is proof of it. If the dollar continues to collapse in value in tandem with the other fiat currencies, US home prices vis-a-vis household incomes will keep moving higher.
Link to data source: https://www.numbeo.com/property-investment/rankings_current.jsp
Global house price to income multiples under global QE continue to escalate
For about ten years, I have been warning my readers that under the various forms of QE programmes around the world, global house prices when compared to household incomes would continue to rise, regardless of economic circumstances and affordability constraints. The following table lays out in detail where house prices stand when compared to the average household in 225 large cities around the world.
Of course, the global outlook is absolutely grim, since governments continue to pile on debt, which adds to the amount of leverageable securities (e.g. US Treasuries, UK Gilts) that can be used as collateral to buy up more assets.
Link to data source: https://www.numbeo.com/property-investment/rankings_current.jsp
A note to the reader: Please remember, Tuesdays are Soylent Green days.
Interesting. A recent “analyst” on Bloomberg said oil stocks are a “mess” and should be sold into any uptick. Further, contrary to all the charts, arrays and AI (and reports that Buffet was selling) that I studied in mid December of last year, the markets are grinding upward. The charts etc. were pointing to a significant correction in all equity markets. Hmmmm……am I right in thinking these markets are manipulated?
I see the Democrats inevitably winning the White House and control of the congress and senate in 2024 regardless who becomes the Republican nominee.
If Trump becomes the Republican nominee that will turn off the suburban upper middle class soccer parents who will vote democrat never mind the urban dwellers where most of the people vote.
If by remote chance Nikki Haley becomes the Republican candidate then the Trump supporters will not vote and Trump may very well split away into a third party run which will divide the non democrat vote.
I think Nikki Haley is nothing more than another deep state impostor.
I notice most of today’s TV commercials feature blacks with a few Hispanics here and there. What is really bothersome is that today’s ads with blacks feature ebonic culture and language. The few ads with Hispanics features their culture.
I see this as a middle finger to average Caucasian American middle class values that we grew up with in the 70s and 80s.
This also contrasts to the few tv commercials in the seventies that featured blacks in middle class settings living middle class lives with middle class attitudes. The ads back in the 70s just had a few blacks and an occasional asian American but they did feature them living middle class lives with middle American values. Aaaah those were the days. The USA is over and out.
Ok note to self: if Trump wins the presidency, go all in on DWAC.
Trump is a cut out
Retail sales data come in hotter than expected and import prices stronger as well. Export prices lower than consensus. Overall, bonds and the markets are not a fan.
Core Retail Sales (MoM) (Dec)
Act: 0.4% Cons: 0.2% Prev: 0.2%
Retail Control (MoM) (Dec)
Act: 0.8% Cons: Prev: 0.5%
Retail Sales (YoY) (Dec)
Act: 5.59% Cons: Prev: 3.97%
Retail Sales (MoM) (Dec)
Act: 0.6% Cons: 0.4% Prev: 0.3%
Retail Sales Ex Gas/Autos (MoM) (Dec)
Act: 0.6% Cons: Prev: 0.6%
Export Price Index (MoM) (Dec)
Act: -0.9% Cons: -0.6% Prev: -0.9%
Export Price Index (YoY)
Act: -3.2% Cons: Prev: -5.2%
Import Price Index (YoY)
Act: -1.6% Cons: Prev: -1.4%
Import Price Index (MoM) (Dec)
Act: 0.0% Cons: -0.5% Prev: -0.5%