The monster known as inflation has been unleashed upon the world and will not easily retreat into the night. This is reflected in soaring commodity and housing prices. Due to the stupid and self-serving policies of the Fed, we are about to experience a massive shift in the way we live. Bubbling up to the surface is also the recognition the Fed has played a major role in pushing inequality higher. This means that inflation is about to devour the purchasing power of our income and the savings of those that have worked hard and saved over the years.
Over the months we have watched Fed Chairman Jerome Powell time and time again cut rates and increase the Fed’s balance sheet. This has hurt savers, forced investors into risky investments in search of yield, damaged the dollar, encouraged politicians to spend like drunken sailors, and increased inequality. The greatest wealth transfer in history has already begun and the next crisis will only accelerate the process. Sadly, the same policies that dump huge money into larger businesses because it is an easier and faster way to bolster the economy give these concerns a huge advantage over their smaller competitors.
For decades the American people have watched their incomes lag behind the cost of living. To make matters worse, the official numbers of the so-called Consumer Price Index (CPI) have been rigged to understate inflation and not to reflect the true impact it was having on our lives. Want to know where the real cost of things is going, just look at the replacement cost from recent storms and natural disasters. Currently, the government understates inflation by using a formula based on the concept of a “constant level of satisfaction” that evolved during the first half of the 20th century in academia. This has skewed expectations and led many people to think inflation is not something they need to worry about.
While many workers are chilling at home or working reduced hours due to covid-19 lock-downs many are paying little attention to the huge number of job opportunities that are vanishing every day. Jobs are being eliminated at an alarming rate and the soaring wages businesses must pay to get people to work is adding a whole new element to this situation. It encourages businesses to bring in machines that reduce the need for human workers. Those putting a friendly face on this calling it “creative destruction” may someday look back at the problems created by jobs vanishing with huge regret. Millions of small businesses being decimated by Fed policies that favor huge companies coupled with a surge in automation bodes poorly for small businesses and those looking for work.
Democrats always kill our economy
The Monster is called BIDEN !!!!