Nothing happens by accident. We live in a world of cause and effect, which leads to every effect generating a new cause. This universal law is playing out in the U.S. economy and, by extension, the rest of the world.
Inflation Spiked 8.2% In September In ‘Nightmare Scenario’ For Fed
Core inflation which excludes food and energy went up even more on a month-to-month basis.
The overall 8.2% ‘official’ inflation rate is over 400% more than when Trump left office. Economists like Peter Schiff state that the actual inflation rate is closer to 20%. Dream along if you think this has happened accidentally. In fact, there is a case to be made that this is intentional.
3 Factors for the current predicament:
Restricting U.S. energy production.
Reckless spending and borrowing.
Spurring the war in Ukraine instead of promoting diplomacy.
So who is to blame? Look no further than the Biden administration, although Republicans in Congress have been complicit in reckless spending. Biden and his backers set about to stick it to the oil industry. They said so before the election, yet people still voted for the Green New Deal mob. How is that working out? I bet many are now regretting their vote.
In what has to be an unbelievable policy, Biden––after depressing the domestic oil and gas industry––went begging the Saudis to increase their production. How stupid can you get? Well, the Saudis rebuff and instead of upping production they told him that they were cutting production. Well done, Mr President.
Some people believe we shouldn’t be critical of Biden and come together; it’s really Trump’s fault. Trump may be many things, but he didn’t tank the U.S. economy. Biden is not a very nice guy, and his anger and tirade against ‘white extremism’ does not help bring a country together. It’s not really a surprise why we have the current state of affairs.
Everything is based on energy in our society. The massive rise in energy prices has filtered through the economy. This was compounded by reckless spending and money printing. The third nail in the economic coffin is the war in Ukraine. So who takes the hit? Not the elites or the politicians but the hardworking person and small business owners.
The average American is dealing with the following price increases.
Source: U.S. Bureau of Labor Statistics
People are going to have to deal with ever-increasing interest rates. No doubt we will get back to home foreclosures, more businesses closing down and an increase in unemployment. So the immediate future does not look rosy. The financial conditions in the U.S. are worse than they were in 2008. The U.S. debt during the Global Financial Crisis was $10 trillion. Today it stands at $31. Near zero percent interest rates lulled people into cheap credit. Now interest rates are skyrocketing and all that debt is going to hit home big time.
The long-term effects could very well have huge societal impacts. There will be a further reduction in people having children. Only the affluent will be able to afford kids. Seniors who have retired and are dependent on retirement funds could see a significant erosion of their funds and the ability to look after themselves financially. When a society starts to lack affordable energy and has difficulty paying for food, this could lead to chaos that may make the post-George Floyd riots seem like a picnic.
There is, however, a light at the end of the tunnel. Things could get terrible globally before they get better. It seems we don’t learn from history. When the housing market collapses, and people stop buying homes, when businesses can’t sell their products, inflation will be curtailed with a lot of debris left in its wake. But in the end, things will once again be on the upswing. How long that will take is anyone's guess. Much depends on the upcoming U.S. mid-term election .
Very well written. Share worthy to all my blue pill friends. Bravo!
The media are leaking out the huge cola raise retirees are getting of 8%. All I can say is read the fine print, you are still getting screwed again and by the same people. You are breaking even at best.