Inflation rose in February but was in line with expectations, likely keeping the Federal Reserve on track for another interest rate hike next week despite recent banking industry turmoil.
The consumer price index increased 0.4% for the month, putting the annual inflation rate at 6%, the Labor Department reported Tuesday. Both readings were exactly in line with Dow Jones estimates.
We are going to be told that these are somehow good numbers and that this is further proof that the economy is doing well? I wonder out loud how many Americans got 6% raises in the past year? Because short of a 6% raise, your wages went down in real dollars. This is the reason why credit card debt it peaking at all time highs and savings are down.
The Federal Reserve does not have a really "good" choice here either way. But they seem convinced that the only way to tame the out of control inflation is with more interest rate hikes. Like it or not, the current government spending is likely to continue to push inflation. Certainly it does not look like we are looking to decrease our spending in the latest rounds of budget submissions. In fact, the White House is looking to push another 6 trillion in new taxes in order to spend more.
The trouble here is that inflation is caused by any "spending". Not just "spending" that is not paid for. In fact, you start tossing around 6 trillion dollars in taxes on businesses and wealthy business owners, those expenses are passed along to the consumer. Businesses cannot pass these expenses on without raising prices and it is not like the Government can force anyone to freeze prices. This is a problem.
Why?
Because raising prices, you see, is the very definition of inflation. So how can you honestly suggest that raising taxes by 6 trillion dollars will lower inflation? You cannot honestly suggest it. But you can dishonestly suggest as much. You might even name your new spending bill "the inflation kryptonite bill" just to fool Democratic voter. After all they are a gullible bunch. Although we might have already gone to the well once to many times on that one? You remember the "inflation reduction act" that Democrats passed? Well our 6% year over year inflation is the net result of them "reducing" inflation with a previous spending bill. Fool me once, shame on you... fool me twice and I must be a Democrat.
Roger has spent the last two days trying to convince me that Biden is decreasing the deficit but that it is just far more complicated than what I believe it is.
Because... you know the CBO historical budget data and a little math is a bit much for our favorite nursing home resident. Someone I am sure was quoted on politicalwire.com as suggesting as much and Roger takes it as gospel.
CHT, Any word from Roger on how well the "Biden Sanctions " are working to collapse thier economy?
We know how well Biden Policies are working to destroy the US Economy.
("it's the Sports Illustrated curse, but for con artists" / Twitter
Everyone laughed at Ron Paul when he called for a Federal reserve audit years ago.
He was prescient.
I was one of the everyone
no longer