Economic security is the foundation for national security. How did PDJT get elected in 2016? His views on the American economy, his belief in the American worker set him apart from the crowded Republican primary field in 2016 and propelled him to the forefront. Despite being outspent more than 2 to 1 in the presidential election, Trump prevailed because he was able to communicate this foundational idea on economic security to the public.
Did PDJT deliver on what he said? Boy, did he ever! PDJT showed Americans that this statement about national security is true. I am not sure how much he slept while he was President. It seemed like he was always awake doing something. PDJT assembled experts in global economics and executed a plan to level the playing field. PDJT understood from the get-go that the key to a strong American economy was energy independence.
Sundance notes:
He also knew there would be negative consequences to allies and partners if the U.S. energy policy was independent. Trump knew that OPEC nations in general would be negatively impacted, and he knew that Saudi Arabia specifically would be weakened geopolitically. That is why the very first foreign trip by Donald Trump was to Saudi Arabia and the Gulf States that make up the majority of OPEC.
What was the purpose of this trip? First and foremost, it was to assure Saudi Arabia and others in that area of the world that America was committed to their stability and safety. They were going to lose money and therefore, the potential for unrest existed.
PDJT promised to work toward peace and the economic prosperity of all. PDJT delivered on those promises with the Abraham Accords. The Middle East had not seen the potential for peace, security and prosperity for all in many, many years.
Trump repeated these efforts around the world many times during his tenure in the White House. How does the record of the avatar currently sleeping in the White House occasionally compare to this? What do the communists behind the throne have to show for their efforts?
From the very first day in office, this administration has systematically worked to destroy America as it exists. Biden issued an executive order against leasing federal lands for oil production. It is rumored that this was part of the deal with Elizabeth Warren to get her to drop out of the primaries. Biden also stopped the Keystone XL pipeline that would have brought more fossil fuels to our refineries on the Gulf Coast.
This immediately impacted the price of oil on the world market. Continual exploration and drilling are need to keep the spigots flowing with cheap energy. Cheap energy and energy independence are the keys to a booming American economy.
The Democrats were determined to fundamentally change that. They needed such energy to become much more expensive if they were to cash in on the rapture of solar and wind energy. And rapture it was since there is no conceivable way that solar and wind energy can replace the cheap energy that we were getting from oil and natural gas.
Combining this approach with the reckless spending of money we don’t have, the result was an inflation that has hit Western economies like a sledge hammer. The Democrats do not care. They need this level of inflation to make more people depend on the government for their very existence.
Where is inflation headed? The “Producer Price Index” (PPI) is essentially the tracking of wholesale prices at three stages: Origination (commodity), Intermediate (processing), and then Final (to wholesale). The PPI is at record levels. The Consumer Price Index (CPI) generally follows the PPI by 6 to 9 months.
Where is the PPI today?
This is extremely troubling. The PPI has been in double digit range for six months. This is well before the invasion of Ukraine. The idea that the war is causing inflation is ridiculous. It appears that before the election this coming November, the CPI will hit double digits unless the administration pulls some flim flam with the numbers.
Sundance notes:
More troubling than the final demand price increases (wholesale finished goods), are the price increases in the intermediate goods and unprocessed raw materials.
Intermediate processed goods increased 2.3% in May (27.6% annualized). The intermediate unprocessed goods, raw materials, jumped even higher in price at 6.3% for May (that’s a whopping 75.6% annualized increase). It would appear the raw materials coming into the goods sector are coming in with even higher built-in energy costs than most people anticipated.
Once those intermediate products reach the final demand stage (wholesale), the cumulative price increase will mean even higher consumer prices.
These are scary numbers indeed. However, they are not fictitious. All of us have seen just how much gasoline has gone up. The price of gasoline has more than doubled since Biden took office. Very little of that is due to the Russia Ukraine war.
The Fed trying to curtail inflation by raising the interest rate 0.75% is closing the barn doors after the horse has escaped. Perhaps a better analogy would be trying to swat a gnat with a sledge hammer. The problem is profligate spending by an administration that knows how to do nothing else along with a continued resistance to turning on the spigots for fossil fuel production. This inflation problem is only going to get worse.
The administration is considering two more ideas that will further exacerbate the situation.
The Biden administration is now considering sending taxpayer funded “gas cards” to taxpayers who cannot afford the gasoline prices created by the Biden administration energy policy. Some would say this is just a special kind of stupid. In reality this is where they want to be. They want to be seen as saviors coming the rescue of the Putin price hikes. Most people can see through this chicanery.
The second idea is to “forgive” student loans. Again, a special kind of stupid? Not really. They are flying in to rescue the public. Of course, injecting this much money (over a trillion dollars) into the economy right now would make inflation much, much worse. We could be looking at gas prices approaching double digits in the dollar column.
Every day it is a new absurdity. But this is their plan. And they need to accomplish this before November. Such desperation is leading to an acceleration of their attempts to destroy the foundations of America, liberty, individualism, self reliance and freedom.
How will it all end?