This:
The fact that the dollar is worth less vis-a-vis gold and oil is an indication that everything else (food, clothing, consumer goods, land, etc.) will have substantial price increases in the near term. And not because these items will be worth more, but because the dollars we get paid with are worth less.
is exactly what makes today house prices more inflated than ever. If we are paid in dollars and have to spend more dollars on stuff we have to buy, we have that much less money to buy things we wish to buy. We just become poorer, less able to buy a house. And because – unlike oil and gold – you cannot move your house wherever you like, the prices are dictated first and foremost by the local economy.
That’s my understanding.
