$MCLmain > $100: The Hidden $5,000 Inflation Tax on Households

Michael Esther
03-15

Most people think rising oil $Micro WTI Crude Oil - main 2604(MCLmain)$ prices only hit you at the gas pump.

They're wrong.

Oil above $100 raises your RENT or mortgage even if you never drive a car:

1. Oil spikes. Energy is in everything. Gas, diesel, heating oil all jump 40–90%.

2. Inflation surges. Higher transport + energy costs ripple into every good & service you buy. CPI explodes.

3. The Fed panics. To kill inflation, the Fed raises interest rates. In 2022 alone they hiked 11 times the fastest pace in 40 years.

4. Mortgage rates skyrocket. Mortgage rates track the Fed. They went from 3% → 8% between 2021 and 2023.

$400K mortgage at 3% = $1,686/mo

$400K mortgage at 8% = $2,935/mo

That's +$1,249/mo for the SAME house.

5. Homeowners refuse to sell. Nobody gives up their 3% mortgage. Listings collapse. Housing supply craters.

6. Renters get crushed. Fewer homes for sale = more people forced to rent. Landlords know this. Rents spike.

In 2022: rents surged 15.9% in a single year.

In 2023: rent peaked at 8.7% year-over-year.

Today: the average renter pays $500–$800/mo MORE than in 2020. And 30% of renters reported struggling to pay rent at least once in 2023.

Oil went above $100 again in 2026. You don't need a car to get hit. You just need a roof over your head!

Every time oil hits $100/barrel, same 5 things happen to your wallet. It's happened 3 times since 2008.

Here's the damage each time and remember, oil at $100 is an invisible tax of $5,000/yr on every person.

🔴 2008 China demand + Middle East tensions

Oil peaked at $147/bbl

- Gas: $2.28 → $4.10/gal (+80%)

- Groceries: +6.4%

- Airfare: +36%

- Heating oil: +68%

- Diesel/freight: +76%

🟡 2011–2014 Arab Spring + Iran sanctions

Oil held $100+ for 3.5 YEARS (longest ever)

- Gas: $2.72 → $3.96/gal (+46%)

- Groceries: +11% over 3 years

- Airfare: +45%

- Heating oil: +39%

- Diesel/freight: +32%

🔴 2022 Russia invades Ukraine

Oil peaked at $130/bbl

- Gas: $3.28 → $4.99/gal (+52%)

- Groceries: +13%

- Airfare: +54%

- Heating oil: +90%

- Diesel/freight: +77%

And in March 2026, oil just crossed $100 again. There you go!

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