Red flags are popping up all over our economy. Home prices are up 23% and approaching the highest one-month move since 1968. Inflation continues to rise, consumer sentiment wanes, and retail sales drop. Some are finally looking at the Biden administration and its economic policies and asking, “What have they done?”
There are reports that the Federal Reserve is nearing a point of scaling back its quantitative easing. The talk is now perhaps mid-2022 instead of 2023. Let’s not continue down this path any longer and get even further behind the curve.
In a recent press conference, Federal Reserve Chair Jerome Powell said he would aim to “achieve inflation moderately above 2%” and that “longer-term inflation expectations remain well anchored at 2%.” He stated that the Fed would maintain its course until “employment and inflation outcomes are achieved.”
It’s hard to believe he could make those statements with a straight face. What is the Fed waiting for? 10%? We are already at about 3% above that “2%,” and it’s been for five months. It’s difficult for it to continue calling it transitory. Diapers, gas, food, produce, cereal, meat; everything is going up. The cost of increased inflation and wages to companies all gets passed to the consumer. As I have been saying since the beginning of the year, this is not going to be short-lived, and will not resolve itself anytime soon.
We are not in a position by any measure to see a sustainable growing economy. We cannot be. We do not have enough workers. The Federal Reserve says we need thriving employment. How will that happen when we see companies buying back their stock, or hoarding money, rather than expanding? This should be a red flag to everyone. Yet again, analysts are either missing it or ignoring it.
There is no returning to pre-pandemic levels in our economy because our leadership is so drastically altered. The marching orders have changed. We have a government intent upon social control and spending its constituents’ money on whatever they please, without any focus on what is best for our country or our economy. The American people are largely falling in step, eager to see our government become more like France, Denmark, Germany, or Sweden. Little by little we are losing our Republic — and not because our government is taking it from us, but because we are giving it away. People are missing the red flags in so many areas of our country; in many cases because they would rather bury their heads in the sand than feel the stress or take a stand.
Even with this grim outlook, I still believe there is reason to stay in the markets for a little longer. We can take advantage of the money continuing to flow into American markets and glean what we can during this leadership’s deconstruction of America. Although unity is getting harder and harder to come by, I remain optimistic that if Americans who love this country stand together, we can still change the tides for liberty, our culture, and our economy.
Dan Celia is president and CEO of Financial Issues Stewardship Ministries, Inc., and host of the nationally syndicated radio and television program “Financial Issues,” heard daily on more than 660 stations across the country, reaching millions of households on several TV networks, including FISM-TV. Visit www.financialissues.org.)
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