Yesterday we shared that U.S. consumer spending unexpectedly dropped 1.1% in July [Source], and today the commerce department is reporting that U.S. housing starts unexpectedly dropped 7% in July [Source]. Stop me when you notice a trend…
The financial pundits continue to attribute these drops to supply chain issues, COVID impacts, material constraints and various ancillary factors that have nothing to do with the underlying and overarching issues – inflation and wages.
As long as skyrocketing food and fuel prices continue to impact the middle-class, forward looking purchasing decisions will be constrained.
We are in an economic era where working class family income priorities are focused on current day survival. “Food, fuel and energy price increases are changing consumer spending habits. Non-essential purchases have stopped….. they haven’t slowed, they have stopped. ←Emphasize this because it is not yet showing up in the data lag.” ~SD
Building permits have been issued, but we are in that period where speculative builders have noticed the consumer plateau and they have proactively stopped the home building process before they get caught upside-down with finished goods and no buyers.
WASHINGTON, Aug 18 (Reuters) – U.S. homebuilding fell more than expected in July, the latest sign that surging construction costs and home prices continued to constrain the housing market early in the third quarter.
The number of houses authorized for construction but not yet started last month was the third highest on record, indicating builders remained hesitant to undertake new projects.

If these reports from Daily Mail and
“This is no small thing, to restore a republic after it has fallen into corruption. I have studied history for years and I cannot recall it ever happening. It may be that our task is impossible. Yet, if we do not try then how will we know it can’t be done? And if we do not try, it most certainly won’t be done. The Founders’ Republic, and the larger war for western civilization, will be lost.”
Our Father, who art in heaven, hallowed be thy Name. Thy kingdom come. THY WILL BE DONE, on earth as it is in heaven. Give us this day our daily bread. And forgive us our trespasses, as we forgive those who trespass against us. And lead us not into temptation, but DELIVER US FROM EVIL.