I Feel Your Pain!
President Biden’s New Message Shows He Feels Americans’ Pain.
In recent weeks, Mr. Biden has made personal appeals in his speeches to families facing higher prices for food, gasoline and cars. Addressing county officials this week he said: “I grew up in a family where the price at the pump was felt in the kitchen. Everybody knew. Everybody felt it. I understand.” In Virginia last week, he said: “I know food prices are up, and we’re working to bring them down.”
That is a change from the way the president addressed inflation earlier in his term. In July, after inflation accelerated at the fastest pace in 13 years, Mr. Biden said price increases “were expected and expected to be temporary.” In September, he said there was “a lot of evidence that gas prices should be going down, but they haven’t,” pledging to work on it. By November, he was acknowledging the impact on families, saying “everything from a gallon of gas to loaf of bread costs more. And it’s worrisome, even though wages are going up.”
Mr. Biden is planning to talk about how inflation has affected Americans during his State of the Union address on March 1, the White House told Democratic lawmakers this week. With inflation reaching a 40-year high last month, a White House official said Mr. Biden wants to convey to the public: “I feel and understand what you’re going through.”
Free Money
Not the M2 growth per se!
It was “free money” literally a “helicopter drop” – three rounds of fiscal stimulus coupled with supply change disruptions and a shift in consumer preference from services to goods.
Far more to it than M2! https://t.co/125OpsVtBC
— Mike “Mish” Shedlock (@MishGEA) February 20, 2022
Many people still do not get it. Perhaps a long term chart will help.
M2 vs the CPI
No Relationship
There is no relationship between money supply and the CPI and there never has been.
Yet, we constantly hear about the relationship.
Why the Recent Surge?
- Three rounds of fiscal stimulus, two by Biden and one by Trump
- Supply chain disruptions
- Massive change in consumer preferences from services to goods
1: Fiscal Stimulus
There were three rounds of fiscal stimulus, the last two of which were unwarranted in size and scope.
In addition to direct fiscal stimulus, Trump initiated and Biden twice extended evictions. Many people made no attempt to pay rent and instead spent that money
2: Supply Chain Disruptions
Supply chain disruptions erupted due to Covid-19.
In addition, thanks to the Fed’s QE policy, the stock market made an enormous bubbles.
The bubble wealth effect led to a huge wave of boomer retirements also increasing the labor shortage.
3: Consumer Preference Change
Covid-19 had a huge change in consumer preferences. Instead of eating out, going to the movies, and getting nails polished, people preferred things.
On top of the above, work at home fueled demand for home offices, office furniture, computers, and homes in suburbs instead of closer to the place of employment.
Feel “My” Pain
When Biden says he feels your pain he is lying.
What he really means is he feels the pain of the upcoming midterm blowout in which Republicans take the House and Senate.
If Biden was honest he would be saying I feel “my” pain, not I “feel” your pain.
He still wants “free” education, although he reluctantly concedes it will not happen. He still has all sorts of environmental demand all of which will raise the price of energy.
And he wants to unionize everything which of course will increase prices and encourage more outsourcing.
In short, Biden is a liar and a hypocrite who feels only his pain, not yours.
That applies to politicians in general. But the person in office is the one most deserving of attack at the moment.
CPI Up Most in 40 Years
For more on the CPI, please see CPI Jumps Most Since February 1982, Up at Least 0.5% 9 Out of Eleven Months
Alleged “Benefits of Running the Economy Hot”
Meanwhile, Charles Evans, president and chief executive officer of the Chicago Fed wants to run the economy hot.
For discussion, please see Chicago Fed President Praises the “Benefits of Running the Economy Hot”
This post originated on MishTalk.Com.
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Mish
But once again, they will lose because they didn’t do anything for the average working American, and once again, after they lose, people like HR Clinton, 0-bama and Mish will say that the defeat was because the party ran “too far to the left”. Same as always!
The various factions in the Republican Party at least get what they want – the social conservatives get their abortion restrictions and bans, the libertarians get their tax cuts and deregulation, the neocons get their wars and so on. The progressives in the DONORcrat Party get nothing. Hell, even with a 75% majority in California, the DONORcrat establishment was able to prevent even placing single-payer health insurance for a vote.