Timothy Birdnow

While overspending is at the root of this inflation - and the Fed exploded the money supply to cover the Covid spending spree and subsequent Biden "stimulus" everything this administration has done has been antithetical to real growth, which is the only way you can overcome more dollars in the system. Look at his push for "green energy" and his assaults on fuel prices; Biden promised to jack gas prices up. Well, all of this puts inflationary pressure on across the board in the market as everything costs more to transport and we don't live in a local economy. Making stuff costs more because electricity is more expensive, shipping costs more because of higher fuel prices, etc. This all is expressed in reduced economic growth to cover the extra dollars so voila! Inflation.

Diane M. Kimura

Q: Is "transitory” referencing inflation or the rate of the slow down in inflation?

A: IMO, it is the latter

Why? Because Biden’s weak leadership led to global conflicts and the remilitarization of the world which are inflationary.

Bidenomics constrain supply of needed commodities and interfere with free markets.

Spending on proxy wars raises demand by U.S. MIC workers on consumer goods while doing little to raise output of consumer goods. Spending on "guns” AND "butter” without adequate investment in new capacity due to high interest rates is itself inflationary.

Hundreds of millions of US "aid and support” are lost to inefficiency and corruption.

Tariffs on imports are directly inflationary.

The anemic growth in GDP is due to Biden|Harris attempting to offset to these forces is a massive influx of new labor across the border, but this has hit a political constraint.

Bidenomics is a prescription for persistently high inflation, bigger government, millions of people added to welfare rolls, strains on housing, schools, and healthcare.

Posted by: Timothy Birdnow at 09:25 AM | Comments (2) | Add Comment
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