So How Is The Second Coming Of Joe Biden Working Out?

Definitely not the Economic Messiah.

The birth of Jesus defines the line between BCE and A.D., some 2,000 years ago. More recently, we had January 20, 2021, the inauguration of President Joe Biden. This was going to be the dividing line between the "orange man bad" (OMB) era and the new messiah, Biden (A.B.). He would heal the country, bringing everyone together to a new social and economic order of 'equity'.

We had Biden as a senator and Vice President. Now as President, how are things working out? 

Forgetting the social enmity Biden has wrought on the populace, his economic policies are truly epic in their headlong rush to catastrophe.

What matters to most people are life's bread and butter economics: mortgage repayments, retirement funds, cost of food and fuel, affordable healthcare and education.

Looking at some charts, we have evidence that Biden is leading America down an economic plug hole with stunning rapidity. We may not be hitting economic collapse, but things are getting dire for the average person. Most know it, except for the economic illiterates in Washington and several other countries. The Biden team and his Federal Reserve cronies are guilty of gross financial malpractice.

It's a real slap to the average worker when the people who caused a problem—the current administration—claim to solve it. In fact, they are making things worse. They were warned about all the 'green' spending and giving Covid handouts with the $1.9 trillion American Rescue Bill in 2021. In the same year, they passed the $1.2 trillion Infrastructure Bill. Last month came the $740 billion Inflation Reduction Act, which is nothing but a green energy boondoggle. How preposterous; spending money to reduce inflation. It can't get any dumber. But wait, Biden also signed a Student Loan Forgiveness Plan costing the government almost another $1 trillion.

As they say, the horse has bolted, and inflation is not 'transitory', which was the collective lie. It is entrenched, and now the Fed is in panic mode, jacking up interest rates virtually every month. So what is Biden's response?

In last week's 60 Minute program interview with Scott Pelley, this is what Biden said regarding the surge in inflation:

Pelley: "Mr President, as you know, last Tuesday, the annual inflation rate came in at 8.3%."

Biden: "Well, first of all, let's put this in perspective. Inflation rate month to month was just an inch, hardly at all ... No, I'm not saying it is good news, but it was 8.2 or 8.2 [per cent] before, I mean… you're making, make it sound like, all of a sudden, my God, it went to 8.2%."

The first thing that came to mind was this guy is brain-dead. He's not in control; the people running him are total incompetents, or perhaps they are intentionally doing this and think people are too stupid to notice.

Here is the first chart of U.S. Treasury Bonds. 

When Biden was inaugurated 10 year treasuries were under 1%. Today they are at 3.73% which is triple what it was 20 months ago. The value of those holding bonds has dropped. Who wants to buy bonds with low interest rates? To unload those, sellers have to drastically discount them.

There is a similar impact on the stock market. The DOW today dropped well under 30,000; a 24% decrease since the beginning of the year.So if you hold stocks or bonds and inflation is running at 8.3%––in reality it’s double that––you’re going backwards fast. Your assests and true income are in rapid decline.

The economic situation is now impacting housing. When Biden came into office the 30-year mortgage rate was 2.77%. Today it’s 6.02% which is a 117% increase.

Source: macrotrends.net

Wells Fargo Bank keeps a Housing Market Index which measures sentiment among builders, has dropped rapidly. At the beginning of the year the sentiment was 80%, very positive. It has now dropped into negative territory.

The economic situation is causing the Australian dollar to free-fall in relation to the U.S dollar.

The Aussie dollar is a barometer of the U.S. economy. Why? Because Australia is primarily a resource-based economy. Suppose there is a perception that America is slowing down. In that case, Australia sells less to others, especially China, which will sell fewer goods to the U.S. Hence, it devalues the Aussie dollar.

The sad part about this economic implosion is that it didn't have to happen. There are similar parallels to the Covid-19 debacle. A common thread besides incompetence is the refusal of leaders to take any responsibility for their actions and pie-in-the-sky policies. Biden and his crew blame Trump, Putin, climate change, and right-wing extremists; for anything but themselves. The second coming of Biden is a disaster.

The only glimmer of hope is the U.S. midterm elections in November. If the Republicans win the House and Senate, they can thwart some of Biden's irrational actions. However, if past performance is an indicator, many Republicans may go along to get along instead of serving their constituents.