[SD Realtor]

I thought Rich explained it very well so I will try to augment his theory..

3. As a result of foreign currency pegs, QE here leads to looser monetary policy and thus higher demand in foreign countries. This leads to increased competition for commodities and many other items that could feed into our own domestic prices, regardless of our unemployment rate.

**This one hurts. China and the USA want to buy some oil. China has a huge appetite for oil right now and is holding treasuries and getting paid in dollars which are continuing to depreciate. China will pay more for the oil and thus we will be forced to as well. They have a ton of useless dollars and would rather get something for them now, then less of something for them later when they are more useless.

4. If #3 gets bad enough, foreign countries could let their currencies rise, which would lead to an increase in prices of items we import.

**We already have problems with the way China pegs their currency. As #3 above happens this will only get worse. Other countries will follow suit.

5. Commodity prices in specific could increase due to #1 (more money flowing into risk assets) or #3 (higher demand in foreign countries). They could also rise as foreign countries try to redeploy their excess dollar reserves. Commodity price increases do feed into inflation over time.

**My example above was only for oil however many people do not have a clue about how much we actually import. We import everything from oil to drywall to metal screws. You guys think Walmarts are Targets are the only big imports? Go to your Home Depot or Lowes as well. The issue at hand is commodities are the root of everything. As commodity prices rise everything follows suit. It takes time but it happens.

**Honestly I think the bigger issue at hand over the misunderstanding is the lack of the experience. If you are under 40 you have no clue of this sort of stuff. You were a child at best in the late 70s and early 80s and you didn’t see it. You don’t know what a gas line is, you didn’t witness any of this stuff so it is surreal to you. Asking me for a concrete example of how prices go up when it has been explained seems to validate that. If your costs have only gone up 1 or 2% this year then that is what it is, mine have gone up more. This stuff doesnt take 1 year to happen. It happens over a decade. Believe me we are just barely starting the cycle.

[SD Realtor]

I thought Rich explained it very well so I will try to augment his theory..

3. As a result of foreign currency pegs, QE here leads to looser monetary policy and thus higher demand in foreign countries. This leads to increased competition for commodities and many other items that could feed into our own domestic prices, regardless of our unemployment rate.

**This one hurts. China and the USA want to buy some oil. China has a huge appetite for oil right now and is holding treasuries and getting paid in dollars which are continuing to depreciate. China will pay more for the oil and thus we will be forced to as well. They have a ton of useless dollars and would rather get something for them now, then less of something for them later when they are more useless.

4. If #3 gets bad enough, foreign countries could let their currencies rise, which would lead to an increase in prices of items we import.

**We already have problems with the way China pegs their currency. As #3 above happens this will only get worse. Other countries will follow suit.

5. Commodity prices in specific could increase due to #1 (more money flowing into risk assets) or #3 (higher demand in foreign countries). They could also rise as foreign countries try to redeploy their excess dollar reserves. Commodity price increases do feed into inflation over time.

**My example above was only for oil however many people do not have a clue about how much we actually import. We import everything from oil to drywall to metal screws. You guys think Walmarts are Targets are the only big imports? Go to your Home Depot or Lowes as well. The issue at hand is commodities are the root of everything. As commodity prices rise everything follows suit. It takes time but it happens.

**Honestly I think the bigger issue at hand over the misunderstanding is the lack of the experience. If you are under 40 you have no clue of this sort of stuff. You were a child at best in the late 70s and early 80s and you didn’t see it. You don’t know what a gas line is, you didn’t witness any of this stuff so it is surreal to you. Asking me for a concrete example of how prices go up when it has been explained seems to validate that. If your costs have only gone up 1 or 2% this year then that is what it is, mine have gone up more. This stuff doesnt take 1 year to happen. It happens over a decade. Believe me we are just barely starting the cycle.

[SD Realtor]

I thought Rich explained it very well so I will try to augment his theory..

3. As a result of foreign currency pegs, QE here leads to looser monetary policy and thus higher demand in foreign countries. This leads to increased competition for commodities and many other items that could feed into our own domestic prices, regardless of our unemployment rate.

**This one hurts. China and the USA want to buy some oil. China has a huge appetite for oil right now and is holding treasuries and getting paid in dollars which are continuing to depreciate. China will pay more for the oil and thus we will be forced to as well. They have a ton of useless dollars and would rather get something for them now, then less of something for them later when they are more useless.

4. If #3 gets bad enough, foreign countries could let their currencies rise, which would lead to an increase in prices of items we import.

**We already have problems with the way China pegs their currency. As #3 above happens this will only get worse. Other countries will follow suit.

5. Commodity prices in specific could increase due to #1 (more money flowing into risk assets) or #3 (higher demand in foreign countries). They could also rise as foreign countries try to redeploy their excess dollar reserves. Commodity price increases do feed into inflation over time.

**My example above was only for oil however many people do not have a clue about how much we actually import. We import everything from oil to drywall to metal screws. You guys think Walmarts are Targets are the only big imports? Go to your Home Depot or Lowes as well. The issue at hand is commodities are the root of everything. As commodity prices rise everything follows suit. It takes time but it happens.

**Honestly I think the bigger issue at hand over the misunderstanding is the lack of the experience. If you are under 40 you have no clue of this sort of stuff. You were a child at best in the late 70s and early 80s and you didn’t see it. You don’t know what a gas line is, you didn’t witness any of this stuff so it is surreal to you. Asking me for a concrete example of how prices go up when it has been explained seems to validate that. If your costs have only gone up 1 or 2% this year then that is what it is, mine have gone up more. This stuff doesnt take 1 year to happen. It happens over a decade. Believe me we are just barely starting the cycle.

[SD Realtor]

I thought Rich explained it very well so I will try to augment his theory..

3. As a result of foreign currency pegs, QE here leads to looser monetary policy and thus higher demand in foreign countries. This leads to increased competition for commodities and many other items that could feed into our own domestic prices, regardless of our unemployment rate.

**This one hurts. China and the USA want to buy some oil. China has a huge appetite for oil right now and is holding treasuries and getting paid in dollars which are continuing to depreciate. China will pay more for the oil and thus we will be forced to as well. They have a ton of useless dollars and would rather get something for them now, then less of something for them later when they are more useless.

4. If #3 gets bad enough, foreign countries could let their currencies rise, which would lead to an increase in prices of items we import.

**We already have problems with the way China pegs their currency. As #3 above happens this will only get worse. Other countries will follow suit.

5. Commodity prices in specific could increase due to #1 (more money flowing into risk assets) or #3 (higher demand in foreign countries). They could also rise as foreign countries try to redeploy their excess dollar reserves. Commodity price increases do feed into inflation over time.

**My example above was only for oil however many people do not have a clue about how much we actually import. We import everything from oil to drywall to metal screws. You guys think Walmarts are Targets are the only big imports? Go to your Home Depot or Lowes as well. The issue at hand is commodities are the root of everything. As commodity prices rise everything follows suit. It takes time but it happens.

**Honestly I think the bigger issue at hand over the misunderstanding is the lack of the experience. If you are under 40 you have no clue of this sort of stuff. You were a child at best in the late 70s and early 80s and you didn’t see it. You don’t know what a gas line is, you didn’t witness any of this stuff so it is surreal to you. Asking me for a concrete example of how prices go up when it has been explained seems to validate that. If your costs have only gone up 1 or 2% this year then that is what it is, mine have gone up more. This stuff doesnt take 1 year to happen. It happens over a decade. Believe me we are just barely starting the cycle.

[SD Realtor]

The manager at ralphs will simply pass on his expenses. It is pretty easy to follow the commodity trail. Start at the cost of water and fuel. People who grow everything from fruits/vegetables to feed for cattle/pigs etc incur higher prices. Increasing fuel prices also impact them and the transporters who are needed for the supply chain. Cotton and other things that are grown for textiles and clothing are affected. Pretty much everything at the base is affected and as you move up the manufacturing chain additional costs are added.

The manager at Ralphs has nothing to do with it. he is simply the endpoint in the supply chain.

The other thing is that you are making an implicit assumption about inflation and that is you are accepting the statistics carte blanche. I guess personally I am more skeptical. I don’t believe the unemployment stats and I don’t believe the inflation stats. I simply look back on my on ledger for what I spend on food and clothing over the past few years and the increase is noticeable. Same with my electric and gas bills for the same home. Much more then the 1 or 2% I am being told by the govt.

[SD Realtor]

The manager at ralphs will simply pass on his expenses. It is pretty easy to follow the commodity trail. Start at the cost of water and fuel. People who grow everything from fruits/vegetables to feed for cattle/pigs etc incur higher prices. Increasing fuel prices also impact them and the transporters who are needed for the supply chain. Cotton and other things that are grown for textiles and clothing are affected. Pretty much everything at the base is affected and as you move up the manufacturing chain additional costs are added.

The manager at Ralphs has nothing to do with it. he is simply the endpoint in the supply chain.

The other thing is that you are making an implicit assumption about inflation and that is you are accepting the statistics carte blanche. I guess personally I am more skeptical. I don’t believe the unemployment stats and I don’t believe the inflation stats. I simply look back on my on ledger for what I spend on food and clothing over the past few years and the increase is noticeable. Same with my electric and gas bills for the same home. Much more then the 1 or 2% I am being told by the govt.

[SD Realtor]

The manager at ralphs will simply pass on his expenses. It is pretty easy to follow the commodity trail. Start at the cost of water and fuel. People who grow everything from fruits/vegetables to feed for cattle/pigs etc incur higher prices. Increasing fuel prices also impact them and the transporters who are needed for the supply chain. Cotton and other things that are grown for textiles and clothing are affected. Pretty much everything at the base is affected and as you move up the manufacturing chain additional costs are added.

The manager at Ralphs has nothing to do with it. he is simply the endpoint in the supply chain.

The other thing is that you are making an implicit assumption about inflation and that is you are accepting the statistics carte blanche. I guess personally I am more skeptical. I don’t believe the unemployment stats and I don’t believe the inflation stats. I simply look back on my on ledger for what I spend on food and clothing over the past few years and the increase is noticeable. Same with my electric and gas bills for the same home. Much more then the 1 or 2% I am being told by the govt.

[SD Realtor]

The manager at ralphs will simply pass on his expenses. It is pretty easy to follow the commodity trail. Start at the cost of water and fuel. People who grow everything from fruits/vegetables to feed for cattle/pigs etc incur higher prices. Increasing fuel prices also impact them and the transporters who are needed for the supply chain. Cotton and other things that are grown for textiles and clothing are affected. Pretty much everything at the base is affected and as you move up the manufacturing chain additional costs are added.

The manager at Ralphs has nothing to do with it. he is simply the endpoint in the supply chain.

The other thing is that you are making an implicit assumption about inflation and that is you are accepting the statistics carte blanche. I guess personally I am more skeptical. I don’t believe the unemployment stats and I don’t believe the inflation stats. I simply look back on my on ledger for what I spend on food and clothing over the past few years and the increase is noticeable. Same with my electric and gas bills for the same home. Much more then the 1 or 2% I am being told by the govt.

[SD Realtor]

The manager at ralphs will simply pass on his expenses. It is pretty easy to follow the commodity trail. Start at the cost of water and fuel. People who grow everything from fruits/vegetables to feed for cattle/pigs etc incur higher prices. Increasing fuel prices also impact them and the transporters who are needed for the supply chain. Cotton and other things that are grown for textiles and clothing are affected. Pretty much everything at the base is affected and as you move up the manufacturing chain additional costs are added.

The manager at Ralphs has nothing to do with it. he is simply the endpoint in the supply chain.

The other thing is that you are making an implicit assumption about inflation and that is you are accepting the statistics carte blanche. I guess personally I am more skeptical. I don’t believe the unemployment stats and I don’t believe the inflation stats. I simply look back on my on ledger for what I spend on food and clothing over the past few years and the increase is noticeable. Same with my electric and gas bills for the same home. Much more then the 1 or 2% I am being told by the govt.

[SD Realtor]

I agree with sdr, you are my hero as well. Back in the late 70s and early 80s my parents starting bond ladders with munis. They pretty much have lived off of those yields alone through their retirement.

[SD Realtor]

I agree with sdr, you are my hero as well. Back in the late 70s and early 80s my parents starting bond ladders with munis. They pretty much have lived off of those yields alone through their retirement.

[SD Realtor]

I agree with sdr, you are my hero as well. Back in the late 70s and early 80s my parents starting bond ladders with munis. They pretty much have lived off of those yields alone through their retirement.

[SD Realtor]

I agree with sdr, you are my hero as well. Back in the late 70s and early 80s my parents starting bond ladders with munis. They pretty much have lived off of those yields alone through their retirement.

[SD Realtor]

I agree with sdr, you are my hero as well. Back in the late 70s and early 80s my parents starting bond ladders with munis. They pretty much have lived off of those yields alone through their retirement.

[SD Realtor]

Racer do you know if it was a cash deal that was accepted? Should be easy to find out, go to the tax roll and take a look.

Sadly this sort of stuff happens in real estate and is quite unethical. Of course you cannot get the house but you CAN make things uncomfortable for that agent and his/her broker. You can go to the broker with your offer and show that broker the offer and ask what happened. If the broker has some compelling reason for why your offer was not selected such as an all cash offer or a very low loan amount, or perhaps no contingencies at all, or something like that, then that could help give you the answer you are looking for as well.

If there seems to be no compelling reason other then the agent simply wanted the best offer you can make a complaint to the DRE.

Understand this is alot of legwork on your part but if nobody complains about this behavior it WILL NEVER STOP.

I would strongly encourage you to follow up.

************

Sadly this happens alot and yeah perhaps you should consider going directly to the listing agent for an REO. However in doing so you should also abandon hope for quality representation. However if you have your wits about you, get a good physical inspector and ask someone knowledgeable for some help, then maybe it is the way to go.

Good luck with the next place and hang in there. There will be PLENTY more.

[Author]

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