Joe Biden is in denial about spiraling inflation.
At the same time prices are surging, he’s busy ignoring the disaster that’s on the horizon.
And now, inflation is about to deal Biden one massive defeat.
This year has seen unprecedented inflation in the United States.
Prices on just about everything, from lumber to hot dogs, has skyrocketed since the COVID pandemic sent the markets into a panic last March.
And now, around a year and a half after the outbreak began in early 2020, the economic side-effects of the Federal Reserve’s historic money-printing operation is starting to bear down on the American economy.
With inflation surging to around 5% year-over-year, prices are reaching levels never seen before, driven by hikes in both gasoline and homes across the country.
But at the same time that inflation is putting the US economic recovery in danger, Biden is busy downplaying the issue by suggesting that inflation fears are overblown or even nonexistent.
Fox News reports, “President Biden on Wednesday again downplayed concerns about the recent burst of inflation, maintaining that surging consumers prices are temporary even as he cautioned that restaurants and other businesses in the hospitality sector could take longer to recover from the pandemic.”
“The vast majority of the experts, including Wall Street, are suggesting that it’s highly unlikely that it’s going to be long-term inflation that’s going to get out of hand,” Biden said. “There will be near-term inflation, because everything is now trying to be picked back up.”
Biden’s comments fly directly in the face of economic reality for tens of millions of Americans who are seeing their paychecks evaporate in the face of one of the highest levels of inflation in living memory.
And now, there’s even signs that inflation won’t be “transitory” like the Federal Reserve spent 6 months promising the public.
“The Labor Department said in its monthly report that consumer prices rose 0.9% from May and 5.4% over the past year. Excluding volatile oil and gas prices, so-called core inflation jumped 4.5% over the past year, the largest increase since November 1991,” adds Fox News.
“Higher-than-expected inflation has emerged as a new political liability for the Biden administration, with the government reporting last week that prices for goods and services in June jumped by the most in 13 years, fueling concerns that a rapidly rebounding economy could lead to runaway growth.”
Biden’s recent actions this year, including ramming through a new 1.9 trillion dollar “stimulus bill” without a single vote from Republicans, could be making the situation worse.
The Federal government already runs one of the largest budget deficits in history, and much of the Democrats’ agenda requires even more spending than what’s already taken place.
This will only force the Federal Reserve to continue to print money and keep interest rates artificially low, in order to fund the Federal Government’s growing budget deficits.
And endless money-printing combined with artificially low interest rates are two of the necessary components to trigger runaway inflation.
If that happens and inflation continues to run up through 2024, it could end up costing Biden the White House.