Whoda Thunk It?

I would not be surprised to learn that Peppermint Psaki doesn’t know who Larry Summers is or how he warned about inflation last year.

Déjà Vu All Over Again

I’m so old, I remember the last time the government admitted that the inflation rate was 7.5 %. Of course, they bragged about the rate having come down from a much higher peak back then. Today, the rate is on the way up.

The Gentle Reader may remember that I once said that Carter’s second term would be a best case scenario for the present administration. That was much too optimistic. We’re already in James Buchanan territory and rapidly headed downward.

Off-the-Shelf Solutions for a High-Class Problem

Folks at the Xiden White House have referred to inflation as a “high-class” problem. Now, when I took ECON 101 many decades ago, I was told that the cause of inflation was too much money chasing too few goods. Of course, the Build Back Better scam will pump even more fiat money into circulation, so that would suggest that inflation would accelerate even more if Xiden’s plan were to pass.

But what if all that money had no goods to chase after? Would that break the back of inflation? Is the supply chain disruption seen as so potentially beneficial by the people in the Administration that they’re willing to tolerate late delivery of their treadmills?

Or are they thinking at all?

Hmmmm.

Fiat Penuria

The Xiden Administration’s economic policies have resulted in the inflation rate rising to 6.8 percent for the 12 months ending this November. This has mostly been caused by executive actions such as the restrictions imposed on the oil and gas industries which turned America from a net exporter of energy products to a net importer.

But have no fear. This afternoon the President will sign another “executive
order on delivering the Government services and experience the American people expect and deserve.”

Fiat Penuria. Let there be scarcity.

Math is Hard

From January to May, the Consumer Price Index rose 3.9 %. That’s an annual rate of 9.5 %.

The last time the CPI was rising at a comparable rate was from 1979 to 1981—

1979  11.3 %
1980  13.5 %
1981  10.3 %

Carter’s second term is beginning to look like the best-case scenario.

BTW, I looked over some old financial records, and while my raises averaged about 9 % each year during the Carter Administration (mostly because of promotions), my paychecks didn’t keep up with inflation.

Harbingers of Stagflation

The recent employment report was expected to show around a million new jobs. Only around a quarter of a million were created. The Consumer Price Index for April rose 4.2 %, even greater than the expected 3.6 % inflation.

And in other news, the Xiden administration wants to dump multiple trillions of deficit spending into the economy.

Carter’s second term is beginning to look like the best case scenario.

I wonder how badly the values of my 401k and IRA will be hit.