Joe Biden is on track to oversee one of the worst economic crises in American history.
Less than a year after taking office, the United States is heading straight for a fiscal cliff.
And it’s all because Biden is letting sky-high inflation run out of control.
For months, talking heads in Washington, D.C. and left-wing economists have alleged that the rising prices on food, gas, and even lumber are all just “temporary” price-spikes that will disappear by the end of the year.
The term that was collectively used for the past six months has been that inflation is “transitory,” and that there is ultimately nothing to fear about an increase in prices.
But after months of printing trillions upon trillions of dollars, new evidence is showing that the Biden inflation bump is here to stay, and it could wreak havoc on millions of Americans.
The Wall Street Journal reports, “Americans should brace themselves for several years of higher inflation than they’ve seen in decades, according to economists who expect the robust post-pandemic economic recovery to fuel brisk price increases for a while.”
“Economists surveyed this month by The Wall Street Journal raised their forecasts of how high inflation would go and for how long, compared with their previous expectations in April.”
The jump in inflation has been most heavily pronounced in basic consumer goods that the vast majority of Americans purchase on a regular basis, including food, groceries, and gasoline.
But other items have also skyrocketed in price over the last half year, including the price of lumber, rubber, corn, and soybeans.
“The respondents on average now expect a widely followed measure of inflation, which excludes volatile food and energy components, to be up 3.2% in the fourth quarter of 2021 from a year before. They forecast the annual rise to recede to slightly less than 2.3% a year in 2022 and 2023. That would mean an average annual increase of 2.58% from 2021 through 2023, putting inflation at levels last seen in 1993.” adds the Wall Street Journal.
The recent spike in inflation is far higher than the Federal Reserve and most liberal-leaning economists had previously predicted. There are signs that if the inflation rate remains as high as it currently is such a scenario would force the Federal Reserve to raise interest rates far sooner than they currently wish, this could trigger a major correction in the stock market, which would likely hurt middle-class Americans even more.
“At the Fed’s June policy meeting, most officials projected they would raise interest rates from near zero by 2023. Several expected to raise rates next year. In March, most officials expected to hold rates steady through 2023.” writes the Wall Street Journal.
As a sign of just how out of control inflation has become, the Wall Street Journal also adds: “The inflation measure—the Commerce Department’s core price index of personal-consumption expenditures—jumped 3.4% in May from a year earlier, the biggest increase since the early 1990s.”
Typically, inflation factors in heavily with whether the President’s party does well in midterm elections, and during presidential elections.
Should the economy continue to stall going into 2022, the end result could be an electoral disaster for Joe Biden and the Democratic Party.