Trying to incorporate the effects of monetary debasement into financial discussions becomes mind-numbingly complicated.
When I say a 3/1 house in Clairemont will bottom at $225K I am talking about today’s dollar.
Who knows what that number will be in 5 or 7 years or if we will still be using today’s dollar at all.
America is on at least its third fiat currency already. I can’t say that we won’t be using an entirely different currency before housing bottoms. It actually wouldn’t surprise me if we were!
And if the government were still publishing the honest numbers for inflation perhaps I would use them. {I would get up on my soapbox and talk about hedonic adjustments and the substitution effect in the inflation calculations but it’s friday night and I’m not going to go there!}
