Postcards: Things You Can't Unsee

Whether it's housing prices or the week ahead... the answers are right in front of you.

Dear Fellow Expat:

Earlier today, I listened to two economists spar over housing prices.

Why are housing prices so high?

On one side, there was the obvious… the U.S. government continues to subsidize housing when subsidies aren’t needed. If you promise to give new homebuyers $25,000 in free money to purchase their new home… don’t be shocked if the average house goes up in price by… $25,000. Spending money because prices are high…

This is lunacy.

On the other side… there was the supply-side argument. There’s demographics… high labor costs… high land costs… and alot of regulation impacting the ability to create new supply.

And… both people are right. But there was ZERO mention of the most obvious influence.

The money supply. The Federal Reserve has engaged in inflation targeting for 31 years, and we recently increased the U.S. money supply by a whopping 30%+ in the last few years since the pandemic.

And if you just do the obvious… put the U.S. money supply on a chart with the residential…