First thing, I throw out the term Bidenflation at home and my wife laughs because we both know this has nothing to do with Biden nor government spending because to push the needle this far and this fast means an exponential increase in G spending as G spending in economic terms and in inflation terms is minor, so while the spending is up it is not enough to push the needle this far this fast.
So inflation, how is inflation created? Inflation is demand driven or supply driven and can be compounded by a monopoly or a supply shock or a massive demand shock. How was this bout of inflation created? Can we actually determine with real numbers and trends that can validate it that this inflation is due to G spending or spending at all? To move the needle this high and fast to me points far far away from G spending since we have been G spending for decades and yet here we are with the greatest inflation spike since likely the 80s as to speed and relative severity.
Another reason I think this is not demand based or excess G spending based is the FED has ramped rates hard, straight line up and in the past even moderate moves squashes demand based inflation because in theory raising rates smashes speculative demand, in the same way that the FED squashed the fake oil supply ramp as the lack of cheap speculative funding evaporated, and it wasnt really even the FED rather banks stopped giving zero cash out and that is the same as a rate hike to the general economy, the speculative frackers got wacked, banks stopped lending and our fake oil independence went away and that is why the monopoly now controls pricing.
My view is this situation started from a supply shock that still exists, The supply chain still is not fixed and that is largely due to higher interest rates...it costs corps more to finance inventories with rates higher and the only corps that are not hurt are those who sucked the debt market dry with long duration debt, so the large cap tech are still enjoying that cheap interest costs because they went longer in duration. Now that SOME supply issues are better but not FLUSH, the issue has morphed into a GREED-flation plus a lack of flush inventories. I do not consider this inflation to be consumer demand driven, I just do not see any sign of excess demand to the extent that would push inflation like this. We had more demand back in the .com bubble and the 2007 housing market bubble from a consumer perspective and yet neither compares to what we face now.
So take off the DEM vs Repub glasses and discuss economics and inflation. The G portion of the pie does not spike inflation, it just is not validated or backed by any real data so you can spare the BIDEN poop throwing, it has little to do with the government.
@WSC
President Biden was of course spot on about the threat to democracy posed by the MAGA cult, led by the sex-offender who is the leader of the GOP and boss of the trump crime family indicted on 91 charges.
Hot Forum Topics
