By Duncan Smith
If you were paying attention earlier today — and anyone with retirement savings wrapped up in 401(k) accounts and other investment vehicles likely was — the major indices tanked.
The Dow was off by about 900 points; the NASDAQ 200; the S&P 500 down by more than 90 points.
Those are big drops.
What’s going on? What is making the market jittery today?
While ‘renewed concerns’ over COVID resurgence also lent momentum to today’s drop, beginning last week, inflation concerns were the primary drivers of the markets’ downward trend.
So what is driving inflation? Simple: More money in the system with fewer goods and services causing prices to increase 200% year-over-year for many items.
What is Joe Biden’s solution?
Fox Business Network reports:
President Biden said Monday that Congress needs to pass his sweeping economic agenda in order to tamp down rising inflation amid concerns that another burst of government spending will act as an accelerant to already rapidly rising consumer prices.
“As our economy has come roaring back, we’ve seen some price increases,” the president said, speaking from the White House. “Some folks have raised worries that could be a sign of persistent inflation. But that’s not our view.”
Biden said that his administration was doing “everything we can” to address the higher-than-expected inflation, but he pushed back against fears of persistent inflation and maintained his stance the recent surge in consumer prices is temporary.
“Look, we brought this economy back from the brink. There are going to be ups and downs,” he said. “Reality is you can’t flip the global economic light back on and not expect this to happen. As demand returns, there’s going to be global supply chain challenge.”
First of all, what’s this “we brought the economy back from the brink” BS? This guy and his administration haven’t done jack when it comes to revitalizing the economy.
Growth began with, and was propelled by, red states that ended stupid COVID restrictions and allowed Americans to get back to work.
Secondly, can this economic genius please explain how dumping more dollars into an already inflationary economy — one in which he admitted there are supply chain issues — will reverse inflation?
This is madness upon madness.
Hang onto your seat folks. And your hard-value ‘currency’ like gold and silver.
Is Inflation Going to Break the Back of Consumers and our Economy?
Will backed-up supply chains ever catch up to demand?
You have to be prepared for the coming financial reset