The Joe Biden, Jerome Powell Housing Crisis: The National Median Rent Has Increased By 11.4% and about to go up again – September 1, 2021,
While Jerome Powell focuses on evolving his usage of “transitory inflation” Joe Biden focuses on finding ways to borrow more money from the Federal Reserve. This recipe so far has been disastrous for small businesses in America which are already in debt.
Most real estate investors are in debt and require their tenants to pay for their mortgages, on the flip side are the real estate investors who seek not to rent out their properties but instead flip their properties for a quick buck. Because Jerome Powell refuses to raise interest rates to reflect the needs of the private sector, Joe Biden is stuck with stimulating the U.S economy by either cutting the size of government or borrowing money which will be worth-less when it gets into the hands of Americans.
Being that the Democrats are known for borrowing and spending, it’s a guarantee that rent prices are going up and to compound the problem, rents might increase while more and more American small businesses face bankruptcy because that’s the damage caused by near-zero percent interest rates, the very rich have access to cheap debt, while the average American doesn’t.
There may even be a situation in which liquidation causes prices to rise as there might be bidding wars as properties hit the market, why? Because during normal economic cycles, interest rates go up to correct inefficiencies in the market but being that the Federal Reserve has made normalizing interest rates a thing of the past, all asset prices might appreciate in value while the ECONOMY DEFLATES!
The end result is that the renter suffers and low-income earners suffer. To compound the problem I suspect, the Progressive in Joe Bidens administration will seek to remedy the problem with more regulations and more welfare programs, furthermore, I’ve heard that the Progressives would like to replace Jerome Powell with a Fed-Chair who is even more dovish, to people who think Donald Trump would be better, are just as dumb as the Progressives, Donald Trump was one of the first U.S Presidents to openly talk about NEGATIVE INTEREST rates.
We’re entering into a period of history in which there will either be austerity measures or a quasi-nationalization of industry. It looks more like we’re headed down the path of merging corporate and government powers. Economic fascism/corporatism is usually a depressing period in history as innovations begin to decline because of the amount of government bureaucracy private businesses will need to go through to start a successful business.
America is a resilient bunch and the picture I’m painting shouldn’t be viewed as 100% negative, but things will get harder for the poor and middle-class. Progressives have a long track sheet of creating more despair and poverty for the people they claim they want to help. If those Joe Biden voting numbers are an accurate representation of what Americans want, we’re sliding into a progressive era, which means you’d be wise to become more self-sufficient.
Interesting times ahead!