U.S. national Inflation is soaring to the highest level in many decades but Democrats aren’t worried. In fact, they planned on it. Just because all the “gloom and doom” economists predict that you will soon need to buy your coffee two cups at a time — to avoid the hourly price increases — doesn’t mean they’re right. Joe Biden and the Palace assure Americans you don’t need to start raising hamsters for food because the magic voodoo called “Modern Monetary Theory” makes ever-rising prices magically disappear. Alexandria Ocasio-Cortez gives it her Socialist seal of approval so it must be true.
Inflation a thing of the past
Alexandria Ocasio-Cortez loves Socialism and is a devout believer in Modern Monetary Theory but she has no explanation for why some Venezuelans ate the zoo animals. After that, they ate their pets. Now that the meat is gone, they “have resorted to eating wild fruit and garbage.”
That won’t happen here, His Wisdom Joe Biden promises. He will whip inflation with a Palace Decree. All he needs to do is raise taxes. Duh, Democrats are doing that already. It’s finally time to implement his Obama era plan to “spend our way out of bankruptcy.”
On Friday, the palace treasury announced that the numbers for the Bureau of Economic Analysis’ personal consumption expenditure inflation metric “climbed 3.6 percent in April from the prior year.” It doesn’t sound like much but it is a huge deal. This is the “strongest reading in 13 years and more than the 3.5 percent gain that economists in a Bloomberg survey had expected.”
Even liberal socialists are getting anxious. Over at the New York Times they’re getting frantic. “The core price index, which strip out volatile food and fuel prices, rose 3.1 percent in the year through April — the fastest pace since 1992. Prices rose 0.7 percent compared with the prior month, the biggest increase in two decades.” That’s not good for the ole 401K. Or the grocery bill.
The measure of inflation most watched by the Fed surges to the highest since 1992. U.S. personal consumption expenditure core price index: pic.twitter.com/jrM4U86JCl
— Lisa Abramowicz (@lisaabramowicz1) May 28, 2021
Even left-leaning economist Larry Summers is sounding the alarm. He worked for both the Clinton cartel and Barack Obama. Imperial Leader Biden, he warns, is “overdoing it.” The “sense of serenity and complacency being projected by the economic policymakers, that this is all something that can easily be managed, is misplaced.”
He isn’t drinking the MMT Kool-Aid. “We’re taking very substantial risks on the inflation side,” Summers predicts. Those who feed and care for the “creature of Jekyll Island,” commonly called the Federal Reserve, have been doing things in weird ways these days.
Time to hide the punch bowl
“The Fed’s idea used to be that it removed the punchbowl before the party got good. Now, the Fed’s doctrine is that it will only remove the punchbowl after it sees some people staggering around drunk,” Summers explains. Biden’s been into Kamala Harris’ stash of weed again. He thinks he can pass a “massive $6 trillion federal budget.” Congress is going to fight him tooth and nail, even the progressives.
“Under the proposal, debt as a percentage of annual gross domestic product would within a few years exceed the level at the end of World War II and climb to 117% of GDP by the end of 2031” The Wall Street Journal wrote, buried deep in the market news. “That would be up from about 100% this year.” Until MMT came along, that inevitably meant runaway inflation.
Conservative Senator Tom Cotton of Arkansas is furious about it. He says that Joe Biden’s $6 trillion in planned spending is insanity on a stick. “If you think inflation is bad now, wait until Biden spends $6 trillion that we don’t have.”
There’s already been a huge spike in “personal consumption expenditures.” Disposable “personal income, after taxes and other withholdings,” the experts declare, “tumbled 14.6%.” Ranking Republican Kevin McCarthy proclaimed that was “too extreme and too expensive.”
When debt becomes too large, it takes on a life of it’s own. Ours is already “more than a hundred percent” of GDP. “There’s no coming back from that. This sounds like Venezuela or Cuba. Even Obama’s economists tell you this is wrong. And when he’s doing it is wrong. He’s doing it with an economy that’s come booming back. So, what’s he doing? Creating inflation. He’s rewarding people not to work.”
It only took “a short five months” to “put us in a place we haven’t seen since Jimmy Carter.” Palace economists take a deep breath and look calmly into the TV lens. “No, our approach won’t lead to hyperinflation, because we take inflation incredibly seriously,” they soothe. Taxes are “sometimes necessary to stave off inflation.”