By Duncan Smith
If you have a perception that your paycheck isn’t going as far as it did, say, 6 months ago, you’re not dreaming.
While the liars in the Biden regime like Treasury Secretary Janet Yellen yammer about how there is no real inflation and no real shortages of produces, Americans who are living regular lives know better.
All sorts of commodities and products are up — some way up — in terms of cost: Lumber, ammunition, gasoline, pork, chicken, milk, eggs, cars, houses, energy.
And here’s the really bad news: Things aren’t really going to get much better, as the Asia Times reports:
Real US consumer price inflation is running at about 4% a year, well above the Federal Reserve's 2% target and far higher than the 2.7% year-on-year increase reported for April and reflected in the yields of short-term inflation-indexed US Treasury securities.
That's due to a quirk of US inflation measurement, which includes home price inflation with a one- to two-year lag.
Even worse, the explosion of US home prices—now increasing at a bubbly 12% a year—portends even higher inflation for 2022. US fiscal and monetary policy pushed $5 trillion of fiscal stimulus into an economy hobbled by supply constraints, creating the economic equivalent of shaking a bottle of warm Pepsi while placing one's thumb over the opening.
This comes against a very odd backdrop in the labor market, which is, in part, why there are inflationary pressures (because there are supply chain shortages): While there are labor shortages in several industries (factories, construction, and the trucking industry — get ready for gas shortages and resultant price hikes this summer), there is also a rise in unemployment as well.
Fox Business Network reports:
Most economists expected the April jobs report to show that employers had unleashed a torrent of new jobs, the latest piece of evidence that the economy was rapidly rebounding from the coronavirus pandemic.
Instead, the Labor Department reported Friday morning that employers added a measly 266,000 jobs last month and the unemployment rate unexpectedly inched up slightly to 6.1%, confounding the rosy picture of the American labor market.
Consensus forecasts predicted the economy added somewhere around 1 million jobs last month amid increased vaccinations, easing business restrictions and trillions in government stimulus.
So — what happened? What’s going on? Several things, Fox Business notes:
Employers are having difficulty attracting new workers, weighing on the labor market’s recovery from the pandemic. But experts say there’s a host of explanations for the reticence among some unemployed Americans about returning to work.
Among them: Many parents are struggling to find child care with schools still closed for in-person learning, while others workers have said they’re reluctant to return to their jobs out of concern they will contract COVID-19, or one of its more dangerous variants.
Some have also been quick to blame the trillions in government stimulus that Democrats singlehandedly approved in March. The so-called American Rescue Plan sent most households a $1,400 stimulus check and sweetened jobless aid by $300 a week through Sept. 6, 2021.
Democrats in Congress and the Marxists in Biden’s White House are economic illiterates. Their policies are creating imbalances and self-inflicted conflicts within the U.S. economy.
Hard, hard times are coming.
Biden's inflation is GETTING WORSE by the month...
Around the world, supply chains continue to be disrupted. Delays are now commonplace. And they're going to get worse.
There IS a financial reset coming - that's just true. All the signs indicate as much.