Are we headed to inflation the likes of which we have not seen since the Carter administration? April saw an increase of 0.8% in the Consumer Price Index after a 0.6% increase in March. The BLS reports a year over year increase of 4.2%. Keep in mind that a third of that increase came in the last two months. This inflation rate is three times the rate under the PDJT administration. [Top Line Data Here – Detailed Sector Data Here]. I would not be surprised to see inflation hit 6% or higher this year.
A leading cause of these increases have been massive increases in energy costs. Gasoline is up 49.6% year over year. And this was before the spike in many areas of the country due to the ransomware attack on the Colonial Pipeline. Fuel oil was up 37.3% year over year. There are areas of the country where the increases are in the 70-90% range.
Higher gas prices hit the middle class the hardest. It also causes an increase in the price of transporting goods particularly food. Keep in mind that these data points are six weeks old. They do not reflect recent upswings in energy prices. Significant increases in the price of food will be the result in the months ahead.
Sundance notes:
“It is specifically the Biden economic policies that are to blame for the scale of these increased prices. Inflation of this scale is an outcome of policy.
“Biden is focused on helping multinationals and Wall Street; President Trump was focused on helping small businesses and Main Street. We are now seeing the impact from these two differing economic priorities.”
This has the potential to decimate the middle class again just as it did under the Obama administration. And some of these people who will suffer these outcomes actually voted for the Dems.
Just a few days ago the elites in the Washington bubble were ready to dance with the April jobs report. A million jobs were forecast. A declining unemployment rate was forecast. As states opened up (NY, Michigan and California, not so much), workers would be surging back into the work force. They missed by three quarters of a million jobs. Unemployment went up. The Dems tried to spin the news as positive.
I cannot remember in my lifetime when so many things went wrong for the people in power. The voter fraud investigation is gaining legs around the country. The audit in AZ is gaining more attention. Investigations in other states continue. Fraud showing how illegitimate the administration is may lead to a collapse of the government’s ability to govern. Things are getting ugly as the pain is being felt by even the politically ignorant.
The border crisis continues unabated. Trying to keep a lid on the crisis has been unsuccessful. The pandemic is being exposed as an artificial construct. Facts concerning the efficacy (lack thereof) of masking wearing are seeping into the public consciousness.
War has broken out in the Middle East with Hamas bombing Israel and insurrection going on elsewhere in Israel. China is threatening Taiwan. North Korea is threatening anyone who will pay attention. Iran is trying to steal more money from a Democratic administration. Is there anyone with two working brain cells who think that any of this would have happened if PDJT was in office?
The economy is slowing dramatically as people tighten their belts in anticipation of stagnant wages and even a regression in wages. Violent crime stats are surging once again as renewed calls for defunding the police are heard in the halls of Congress. Rent/mortgage payment arrears now approach $10K for almost 20 million households. What happens when the grace period is over? Who will swoop in to buy these distressed properties?
This has been the worst opening months of any administration in my lifetime. It is hard to believe that we are less than four months into this train-wreck of a presidency.