And yes --- with a FIAT currency (which I support) the value of the dollar - in that scheme - is based on US in terms of our taxes - WORK PRODUCT (GDP) etc. In that regard - the value of the dollar - comes from American Citizens agreeing to pay their taxes and the overall USA economy which is American worker based
But the price of houses going up is not FNMA . It is a supply that does not meet demand - but I am not sure how that is FNMA or ? One would think "suppliers" would supply more housing --- and ---- yes IMO - the GOV should support new home building directly
One of the critical aspects of the supply and demand relationship is where does demand come from? Firstly, demand requires that prospective buyers have funds available for the purchase.
Without funds, people are not buyers and they would not look for something to buy. Because of this, anything that makes funds more easily available helps increase demand and therefore provides a contribution to higher prices.
You quoted $25k to $650k for your parents house. Why? Is it 26x more desirable? Did the dollar devalue? Possibly but not 26x. Easily available mortgage funds have provided the lion's share of that inflationary effect.
I know when my parents bought their house mortgages were considered to be dangerous. Nothing safer than assets vs being indebted. So savings (which paid for the $6000 house) were an asset and the purchase of the house converted that asset. The only obligation then were the taxes.
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