By Duncan Smith
The vast majority of Americans know that prices for nearly everything they need have been shooting skyward since the beginning of the year — about the same time that Joe Biden and his handlers stole their way into the White House.
Monetary policy has been a disaster; the Democrats are spending worse than drunken sailors on shore leave, and they aren’t satisfied because they want to print more money and spend it.
But the piper will be paid at some point, and that day of economic reckoning is coming hard and fast.
President Trump’s chief economist, Larry Kudlow, has the down low:
So, another $4.5 trillion in federal spending is just what the country needs, right?
The Senate Democrats on the budget committee have proposed the budget resolution that would do just that.
They’re proud of it, and so is President Biden, so I don’t want to be the skunk at the garden party. I don’t want to be the guy that takes away the punch bowl, but I think most folks know that we already have a post-pandemic economic boom, and whether it’s temporary or not, a big increase in inflation.
So seriously, do we need this $4.5 trillion?
No, we don’t. Already prices have risen by double-digit percentages for gas, lumber, fuel oil, building materials, and cars — especially used cars.
Clearly the market is out of whack. And that’s never a good thing.
From an intelligence report we get:
Following last week's outlook from the Dallas Fed, June's Consumer Price Index (CPI) came in at 5.4% inflation year over year, while Core CPI hit 4.5% — the highest since September 1991. Consumer inflation expectations also remain high, clocking in at 4.8% in June. Most of the increase in CPI is due to vehicle, energy, and travel prices, followed by rent.
The White House is beginning to show some concern, privately worrying that former Treasury Secretary Larry Summers might be right that huge spending plans are creating inflation and hindering economic recovery. The White House reportedly hopes that inflation will be transitory, and two administration officials were privately adamant that inflation would soon peak. Some months ago, Summers warned of a repeat of the late 1960s, when then-President Lyndon B. Johnson's Great Society spending also caused inflation. Democrats didn't want to cut spending because they didn't want to undercut Great Society programs. The Fed was unable to wrangle double-digit inflation of the 1970s, but eventually got it under control by raising interest rates to 20% in 1981.
There is also a supply chain problem.
There are backlogs at ports, shortages of dockworkers, and shortages of truck drivers.
Food and box store retailers are trying to stock up ahead of the Christmas season.
They’re not going to be fully stocked, though. So supply will continue to suffer. And prices will continue to rise.
And all Biden and his Democrat Party have for us on this issue is more spending.
Buckle up, folks. It only gets rougher from here.
Inflationary pressures KEEP buillding in Biden's Economy...Is He Going to Destroy It and Break the Back of Consumers?
Supply chains around the world continue to be bottlenecked...
Don't let yourself be UNPREPARED for the financial reset that IS coming