This article was originally published by Michael Snyder at The Economic Collapse Blog.
It turns out that all of the “doom and gloomers” that were warning that we would eventually experience nightmarish inflation were right after all. In particular, vehicle prices have become exceedingly painful in recent months.
Due to a crippling global shortage of computer chips, the production of new vehicles is way down, and a lot of that demand has shifted into the used vehicle market. Over the past year, used vehicle prices have escalated at a pace that we have never seen before in our entire history, and things reached a crescendo during the month of October. If you can believe it, used vehicle prices increased by 9.2 percent last month…
The industry’s key index of used vehicle prices jumped another 9.2% over the span of just a month. That puts the index 38% higher than a year ago — compared to “just” 27% for the same stat in September.
If used vehicle prices rose by 9.2 percent for an entire year, that would be really bad.
For that to happen in just one month is simply breathtaking.
Overall, used vehicle prices are up a total of 38 percent over the past year, and they are now up a total of 59 percent since October 2019.
So if you purchased a new vehicle within the past couple of years, it may now be worth more than when it was brand new.
To fully appreciate the insanity that we are seeing in used vehicle prices, I would encourage you to check out this chart.
Used vehicle car prices going parabolic ( chart courtesy @wolfstreeet ) pic.twitter.com/XZZf56mBeq
— ritesh jain (@riteshmjn) November 9, 2021
If that isn’t “hyperinflation”, what would you call it?
I can’t imagine that used vehicle prices will continue to rise at an exponential pace like this, but “experts” have been saying the same thing for months and prices just continue to accelerate.
The funny thing is that used vehicle prices usually go down in October…
October typically sees above average vehicle depreciation and therefore used price declines. This October was the first October in the history of the Manheim Index data, which dates to 1997, to see a non-seasonally adjusted price increase in October.
Of course, we are seeing very painful inflation in other sectors of the economy as well.
For example, some meat prices are up “about 40% from a year ago”…
Supermarkets say shoppers are buying more store-brand meat products and trading down from beef to less-expensive alternatives such as chicken or pork, after prices for products such as rib-eye climbed about 40% from a year ago, according to research firm IRI. Some consumers are replacing boneless chicken breast with cheaper bone-in chicken, retailers said.
As food prices continue to soar, eventually it will get to a point where big corporations are putting armed guards on food trucks in order to protect deliveries from being hijacked.
The worst supply chain crisis in American history is one of the primary reasons why prices are beginning to spiral out of control.
A couple days ago, Joe Biden attempted to explain why this is happening…
“It’s backed up because peoples supplies or materials that end up being on our kitchen table or in our in in our our fam, our our our life, guess what? There close those plants because they have COVID.”
What does that even mean?
As things get worse and worse, our leaders in Washington seem to have no answers and no solutions.
It is being projected that this will be a very cold winter in many areas of the country, and heating bills are expected to be way higher than ever before…
With consumers already dealing with the fastest price increases in decades, another unwelcome uptick is on the horizon: a widely expected increase in winter heating bills.
After plunging during the pandemic as the global economy slowed, energy prices have roared upward. Natural gas, used to heat almost half of U.S. households, has almost doubled in price since this time last year. The price of crude oil — which deeply affects the 10 percent of households that rely on heating oil and propane during the winter — has soared by similarly eye-popping levels.
When she was asked about this, this is how Energy Secretary Jennifer Granholm responded…
Americans should expect to pay higher prices to heat their homes this winter, Energy Secretary Jennifer Granholm said Sunday.
“Yeah, this is going to happen,” she told CNN’s Dana Bash. “It will be more expensive this year than last year.”
Things are so bad that they aren’t even trying to put spin on the ridiculously high energy prices any longer.
And heating costs are expected to go even higher in the months ahead as we get into the middle of the winter…
Last month, the Energy Information Administration (EIA) released a report warning that the cost of heating oil is expected to rise approximately 43% compared to last year to due to “higher expected fuel costs as well as more consumption of energy due to a colder winter.”
Meanwhile, the agency expects propane costs to rise by 54%, natural gas costs to rise by 30% and electricity costs to rise by 6%.
Needless to say, government projections almost always turn out to be way too optimistic.
Let’s just hope that the Biden administration’s reckless energy policies don’t result in widespread shortages this winter. One analyst that was interviewed by Fox News is actually warning that if things get bad enough we could actually see Americans “freezing in their homes”…
“I hope it doesn’t end like this, but where I see it going is unfortunately the same thing that happened in February in Texas: People freezing in their homes,” he said, adding, “Most of the time when it’s extremely cold or there’s a real bad polar vortex situation, typically it’s pretty cloudy and there’s not a lot of wind.”
Let us pray that things do not get that crazy in the months to come.
But without a doubt, this is going to be a difficult winter for millions upon millions of Americans.
During the early stages of 2022, we should expect more inflation, more supply chain problems, and more economic chaos.
Decades of very foolish decisions are now starting to catch up with us in a major way, and nobody in Washington seems to have a plan that will pull us out of this mess.
***It is finally here! Michael’s new book entitled “7 Year Apocalypse” is now available in paperback and for the Kindle on Amazon.***
About the Author: My name is Michael Snyder and my brand new book entitled “7 Year Apocalypse” is now available on Amazon.com. In addition to my new book, I have written five other books that are available on Amazon.com including “Lost Prophecies Of The Future Of America”, “The Beginning Of The End”, “Get Prepared Now”, and “Living A Life That Really Matters”. (#CommissionsEarned) By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe. I have published thousands of articles on The Economic Collapse Blog, End Of The American Dream, and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial, or health decisions. I encourage you to follow me on social media on Facebook and Twitter, and anyway that you can share these articles with others is a great help. During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.
“That’s why Cuba is the way it is today—essentially a living museum for classic cars…In the past, nicer cars were reserved for doctors, Communist officials, sports stars, and the like. However, as of 2011, Cubans have been permitted to buy and sell cars freely. This marked a major improvement in the Cuban auto market.
The government, however, tightly controls the new car market and charges very high prices. For example, a Volkswagen might cost $70,000, while a new Peugeot might sell for $250,000. Needless to say, this is completely unaffordable for most Cubans, who earn about $20 per month.”
Bezmenov;s vanguard thinks they will be jet set and eating meat.
We have inflation because too many people have too much money to spend on a limited amount of goods.
Take it away from them and you will see prices fall.
People with less money to buy your products mean you have to lower your prices if you want to sell it. (Either that or just quit making so much of it as long as there is no competition to fill the supply vs demand gap.)
That’s the way free market capitalism works, the price of anything is whatever the market will bear.
“…and electricity costs to rise by 6%.”
The last electric bill I got informed me my rates would be going up 26% on December 1st.
Wow…I wanna go back a couple years when Mr. Snyder’s posts seemed to be pessimistic hyperbole. Now they actually seem too optimistic.
They want everyone to buy an electric vehicle. Good luck with that. The infrastructure can’t handle that kind of load, and there are nowhere near enough power plants. You will be lucky to charge your vehicle in low peak hours, middle of the night, if there are no brown outs or black outs, Buy a bicycle instead.
JRS, Maybe think about puttin up a grid tie solar system. Do it while solar is still cheap and available. You should be able to get panels @ 50-60 cents a watt if you shop around. Used grid tie inverters are about 4-500 for a 4kw unit. You would be suprised how much you save with just a 1kw system. You could also make it so you can switch the panels to off grid. I’t a very smart thing to do and will save you a ton of $$.
Heck right now I am selling a 1kw system for 650 bucks.
4- used 250 watt panels
4 enphase microinverters
1- cable link for the inverters
4- sets of flat roof panel mounts
A good deal. If you want I can post some links where you can get used panels DIRT CHEAP! Ebay has used inverters cheap too.
Thanks for the offer. I just dismantled the small grid-tie system I had and took it down after 12 years of use. Some of the structure it was mounted on needed replaced and I decided to put it all in the garage for now. How much electricity it saved over the years…I don’t know. The home site is not really good for solar. I live at a high altitude and in the woods. I don’t get enough exposure to make a system pay off.
At my age, I’m not going to install a new system.
I hear ya. Maybe offset yer power bill by makin shine! 🙂 Sounds like you have a good place.
I remember my Dad telling about the crash of 29 and how his parents would go to town ( before the crash ) with a hand full of money ( his version, his story ) and come home with with a wheel barrow full of food. Then after the crash of 29, his parents would go to town with with a wheel barrow full of cash ( Dad’s story ) and come home with sack of food, good thing they lived next to river ( maybe that is why he disliked fish with a passion to the day he died ). He always said that just wait and see, that it will happen again. Damn, he is or was right again, it’s happening again. The only difference now is more people are living in towns and cities than in the country.
Where and when will it end? Good question. Like Dad always said, ” grab your rear end and hang on, because it is going to be a bitch of a ride. ” I’m not worried so much about myself as I am worried about my kids, grand kids and great grand kids and what will happen to them.
the hillbilly with two acres of junk cars just re-labled them as “sustainable transportation ” and jacked the price double.
The hillbilly sounds a lot smarter than our current president, maybe we should elect him to the position!
Just an F.Y.I.
That image of US legal tender as toilet paper on a roll is gaslighting propaganda. It is against the law for the Fed to use the US legal tender in any of its internal or market operations. Everything you see being done by the USG, the Fed and the banks is being done with bank credit denominated in dollars, not a US money/currency. The actual money supply expands in only one way and that is by depositor demand. Currently, there are only $2.1 trillion in US legal tender dollars in circulation around the globe, one-fourth of that circulates within the US with the banks holding about $90 billion as cash in vaults. Combine that $2.1 trillion with $4.3 billion in US coin and you have the total of all US legal tender money/currency currently in existence. Everything else erroneously referred to as ‘dollars’ or the ‘US money supply’ is either bank deposit liabilities or asset values, neither of which are US money/currency.
I thought there was about 7 trillion physical dollars in circulation. I stand corrected. However, isn’t this enough proof that the national debt will never be repaid? Wake up folks. Too many have been spending too much time playing video games
That image of US legal tender as toilet paper on a roll is gaslighting propaganda.
no it isnt
not when the gdp is 20.94 and the national debt is almost 29t
just one of the reasons depositor demand is drying up just like money supply
holding usd is suicide
My dollars are going up in value. Maybe get rid of your paper dollars and get silver dollars.. 🙂
The multi-millionaires were the first to line up for PPP welfare and quite a few of them are car dealers. One small town car dealer got over 3 million in handouts.
Cash for clunkers.
Used Vehicle Prices Hyperinflate As Inflation Begins To Spiral Out Of Control All Over America