Inflation is not peaking, as Federal Reserve Chairman Jerome Powell and President Joe Biden have promised. Friday’s consumer price index (CPI) print for May was widely forecast by leading economists to come in at 8.2%. Some went out on a limb to go as high as 8.3%.
The 8.6% figure was a shock, only to be followed by the next day’s revelation that national average gas prices are now above $5 a gallon, for the first time in U.S. history.
As investment banks CEOs and analysts, and even Newsmax Finance Insider columnists, have been warning for a year now, recklessly printing U.S. dollars to throw at COVID-19 in order to save the economy from a recession, was not the answer—and the Biden administration took it too far
The $2.8 trillion in so-called COVID “relief” that Congress authorized since the start of the pandemic—coupled with a $6.7 trillion increase in the U.S. national debt, which boosted it to a record $30 trillion
—is what has overheated the economy.
It is not “unprecedented” economic factors, as the experts keep saying, of lockdowns and changing consumer spending patterns going into and coming out of the aberration of a once-in-a-century pandemic.
It isn’t a tight labor market due to people having left the workforce over fears of contracting COVID or because it was more lucrative for them to live on COVID stimulus money and extended unemployment benefits, than it was to work in a job.
It isn’t the disrupted worldwide supply chain or even the war in Ukraine.
And it certainly isn’t the automatic, zero-to-80-mile-an-hour shift from fossil fuels to green energy that Biden and the Democrats are demanding of America.
President Joe Biden’s version of inflation, i.e. “Bidenflation,” is caused by “Bidenomics,” to crimp two important new terms in The Wall Street Journal.
As the WSJ notes in an editorial over the weekend, “‘Peak Inflation’ Keeps Peaking”
“Once inflation sets in, it acquires its own momentum and isn’t easy to break
. Has anyone other than green-energy subsidy firms benefited from the Biden economy?”
The editorial concludes by reminding people of just how much worse today’s inflation would be, had Biden and the rest of his political party passed the $4.5 trillion Build Back Better
“Democrats owe West Virginia Sen. Joe Manchin for saving them from worse inflation had they passed the $4.5 trillion Build Back Better spending. The May report ought to kill BBB’s last desperate vestiges.”
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