We open today with the monthly inflation report and it is not good. Before I dive into the numbers and bring you the reality of just how bad it is, I remind you through a montage of soundbites what the “Wizards of Smart” in the Biden regime have been trying to tell us since May of 2021. They have been wrong about everything. But, the media and die-hard Leftists still cling to their words as if they are Gospel.
Just this past Sunday, on State of the Union, Treasury Secretary Janet Yellen tried to convince us that while inflation is higher than it should be, we are not in a recession. Well, they can keep lying to themselves and writing new definitions for words, but she is the same woman who said an inflationary cycle was not coming. For months she assured the public it was going to be a blip and then go away. Since she was so wrong for so long, why would anyone believe her now?
CNBC’s Rick Santinelli was forced to reveal the bad numbers this morning. He then tried to distance himself from the Biden regime’s policies by saying, “We agreed spending was causing inflation yet Biden keeps spending even more.” He went on to label the spending related to the Inflation Reduction Act, the subsidies for US microchip manufacturers and forgiving college loans.
Heather Long with the Washington Post (you know it’s bad when one of the biggest arms of Democrat propaganda can’t spin a positive) tweeted that while gasoline prices are down, Americans are still feeling the sting of inflation with food prices up 13.5% in the past year – the largest since 1979; rent up 6.7% in the past year – largest since 1986; electricity up 15.8% in the past year – largest since 1981; and, health insurance up 24.3% year-to-year – the largest ever increase in US recorded history.
And while the average American is now loosing at least one month’s income to the rising prices for food, rent and energy, their average hourly wages slipped 2.8%. In effect, the average family is now spending over $6000 a year more for the exact same things they were buying just one year ago today. All of this is due to the policies of the Biden White House.
The Fed has been trying to slowly pick at the bandage instead of rip it off like I suggested they should do earlier this year. Instead, their slow up-tick of interest has done nothing to stop inflation and will need to be slam the brakes if we want to prevent this economy from spiraling down into a depression for months if not years to come.
As to our Strategic Petroleum Reserves, they have not been this depleted since 1984 and the Biden regime, in an attempt to make it look as if they have the price at the pump issue taken off the voting table, plans to dip into it even more until just before the election. As soon as they stop, combined with OPEC+ already stating their intention to slow oil production, will reverse the downward trend at the pump as soon as the midterms are over. It’s all a ruse to win votes and retain power.
To show you they don’t care, they are planning a celebration today at the White House. They are praising the passage of the Inflation Reduction Act. They are going to party while the United States economy (and most of us) burns in the background. And as a side note, all those concessions Joe Machin (D-WV) thought he was getting by voting for the IRA, are being kicked to the curb. Democrats are doing what Democrats do best, lie to get their way then leave you holding a bag full of empty promises. He betrayed his own constituents and, by way of extension, the entire country by believing his party’s own lies.
Finally we end with a reminder of what a real Noble Prize winning economists said about inflation. Milton Friedman, at the close of the Carter administration was asked about the cause of inflation. His answer from decades ago still applies today, because truth is truth, regardless of how much magic-thinking folks in D.C. are capable of conjuring. Government spending and printing of money is always and has always been the root of inflation. Yet, the Biden regime is planning to throw a party today in honor of printing and spending trillions more.
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