The massive stimulus by the Biden Administration and huge growth in money printing has led to market distortions in consumer demand … along with Covid-related shutdowns.
The first distortion is US retail sales that grew an astounding 9.8% month-over-month in March. This surge is likely due to the stimulus checks sent out by The Federal government.
Food prices are up 21% since moneybag Biden was sworn in as President.
While lumber futures prices are up 73% since Biden’s inauguration.
COVID-19 infections and precautions earlier this year shut down lumber mills, creating a shortage in supplies, particularly in pressure-treated wood. But the surge really occurred after Biden’s inauguration.
Then we have apartment rents (from Zumper). Apartment rents (2 bedroom) are plunging in San Francisco (-23% YoY) and New York City (-16.30% YoY). Oddly, Cleveland OH has the fastest growth in apartment rents (+21% YoY) followed by Durham NC (+20.7 YoY) and Detroit (+19% YoY).
Changes in apartment rents represent households escaping high rents, increased taxes, and safety. Like the escape from New York … to Cleveland???
Meanwhile, purchasing power for US consumers took another hit in Q1 2021.
