“Hot, Hot, Hot” is the mantra that we keep hearing from the financial pundits. Despite the valiant efforts of the Fed, the economy continues to have inflation woes. The financial and business media call the continued rise of consumer inflation “unexpected.”
Who are they kidding? The financial media is either totally ignorant in basic economics or they are covering up the obvious causes to help influence the coming election outcomes. The economic results are not surprising to those who are not pretending to know what is going on.
From CNBC:
“The Federal Reserve has made it very clear they’re committed to price stability, they’re committed to reducing the inflationary pressures,” said Michelle Meyer, chief U.S. economist at the Mastercard Economics Institute. “The more inflation comes in above expectations, the more they’re going to have to prove that commitment, which means higher interest rates and cooling in the underlying economy.”
Another large jump in food prices boosted the headline number. The food index rose 0.8% for the month, the same as August, and was up 11.2% from a year ago.”
The problem with this statement from a supposed expert economist is that it ignores the underlying costs that are continuing to be felt throughout the economy. The historic rise in energy prices are what have driven inflation throughout the economy. These increases are the direct result of Joe Biden’s specific energy policy to limit oil, gas and coal as energy resources.
Cheap energy is what has driven the success of our economy in the past as well as being responsible for the increases in the standard of living for all people around the world. The Biden administration along with the globalists in other countries are trying to collapse the economies so that they can sweep in and “save the people.” In doing so they would impose a communist society on our country with them at the top of the food chain.
Let’s take a look at a chart:
Food costs are exploding. This is the third wave of such increases. What is reaching the grocery store shelves has significant increases embedded from rising energy prices. The Fed raising the interest rates has no effect on this dynamic.
As Sundance notes:
Financial “experts” can shout all day long about the fiscal policy (spending) being the origin of inflation (ie. demand side), they’re wrong. Our current inflation cycle, most notably evident within massive increases in food prices, is a supply side issue created by the increased energy costs. Full stop. It’s a Biden policy outcome.
These costs are built into what is reaching the shelves of the grocery stores. These costs (fertilizer, diesel fuel, etc.) will not go down without a return to cheap energy and that requires America to become energy independent. So, will we see continued inflation if the Republicans gain control of Congress? The short answer is yes.
This administration has made it clear that they will impose whatever pain is needed to get the American public to accept a new reality. They will continue to rule by executive fiat regardless of what Congress does. The reality is that the standard of living for the general public will diminish. We all have to accept lower expectations. This was all part of the “Grand Bargain” that was struck to get the leading candidates (think, Sanders, Warren, Buttigieg, et al) to drop out of the primaries in 2020. It was the only viable path to stealing the election. As a result, the Green New Deal would be implemented.
The administration appears determined to fundamentally transform America from a country where freedom and liberty are paramount to one where the government knows best. And you better not disagree with the government or you may get an FBI SWAT team at your door.