Joe Biden's 'Sick' Take on Inflation :: Right & Free

2 months ago

Joe Biden's 'Sick' Take on Inflation

# joe-biden # federal-reserve

As inflation rises under the Biden administration, our spending power decreases as costs go up.

In a rambling speech on March 11, 2022, President Biden exclaimed how “sick” he is of the American people. 

He is “sick” of us for calling him out for his direct role in inflation and rising fuel prices — Both of which he adamantly denies any responsibility. 

“I’m sick of this stuff… The American people think the reason for inflation is the government spending more money,” Biden said angrily. “Simply. Not. True.”

“Make no mistake, inflation is largely the fault of Putin,” Biden spouted.

“Democrats didn’t cause this problem. Vladimir Putin did,” Biden said while pointing at a New York Times article as his so-called “evidence.”

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The inflation rate in the U.S. rose to 7.5% in 2021 — well before Putin invaded Ukraine. This rate is much higher than was expected and it is the highest increase since 1982.

During his speech on Friday, President Biden falsely claimed that increased government spending and money printing policies are not responsible for the massive spike of inflation we have seen almost since the moment he entered the White House.

One of the basic fundamentals of economics is that increasing the money supply will lead to inflation, with all else equal. 

The money supply is all the currency and other liquid assets in a country's economy. It typically refers to the amount of cash or currency circulating in an economy. 

Since January 2020, the US has printed nearly 80% of all U.S. dollars currently in existence. This has an undeniable impact on our money’s value. 

Every economic expert, or anyone with a basic understanding of economics, will correctly tell you that sustained inflation occurs when a nation’s money supply growth outpaces economic growth, like we are experiencing now.

As a currency loses value, prices rise and our money buys fewer goods and services. This loss of purchasing power impacts the general cost of living for average Americans, and ultimately leads to a deceleration in economic growth, and an acceleration in inflation. 

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Sixty-three percent of Americans disapprove of the president’s handling of inflation and rising prices, including 54% who “strongly” disapprove.

Even former Democrat officials have noted that Biden’s reckless spending agenda, as well as the Federal Reserves’ policies, has overstimulated the economy and led to the surge of inflation.

Economist Steven Rattner, who served in the Treasury Department during the Obama administration, said that February inflation numbers only indicate a small effect from the Russia / Ukraine conflict. 

“This is Biden’s inflation and he needs to own it,” Rattner exclaimed on Twitter. 

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From the time Biden’s massive $1.9 trillion spending bill passed last March, inflation has outpaced wage growth, essentially giving Americans a pay-cut by reducing our spending power.

Former U.S. Treasury Secretary Matt Whitlock, who also served as an economist with the Obama administration, called this spending bill “the least responsible economic policy in 40 years.”

With inflation soaring near 8% in the past year, a high unseen in more than four decades, economists now worry that Biden is poised to make things worse.

The White House’s plan to combat rising prices has primarily centered around Biden’s social welfare and climate change bill, which include plans for even more massive spending increases.

Once known as the “Build Back Better Act,” and now repackaged as “Build Back America,” the legislation would funnel another $1.75 trillion or more into the economy over the next ten years.

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To understand the full impact of the recent money printing increase, we must look back to before the start of January 2020 when there was approximately 4 trillion U.S. dollars in circulation. 

The U.S. money supply increased by 41% from December 2019 to December 2021 as the Federal Reserve began printing cash to offset the cost of the economic downturn related to pandemic restrictions, including the issuing of stimulus checks to millions of people forced out of work. 

This was the largest increase in the money supply in modern American economic history, and it did not stop there. Inflation was sure to follow, and it did, just as economic theory dictates. 

On January 4, 2021, the money supply increased to $6.7 trillion dollars. 

By October 2021, that number climbed to over $20 trillion dollars in circulation.

In December 2019, inflation was sitting at 2.3%. Two years later, it was over 7% and rising.

Then, in February 2022, U.S. inflation rates reached their historical 40-year high of over 7.5%, and the Federal Reserve still plans to print trillions of more dollars with a green-light from the Biden administration.

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What the Federal Reserve is doing now has been tried throughout history. The outcome is always the same, yet it appears we have not learned the critical lesson. 

Use pre-war Germany for an example. Between June 1921 and November 1923 in Weimar Germany, the highest monthly inflation rate rose by over 30,000%. 

This major economic disruption in Germany also created great political disruption, and soon a very dangerous man named Adolph filled the power-vacuum with promises of a booming economy and financial revival.

The German people fell for the false promises — The rest is tragic history. 

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During the fall of the Soviet Union, and more recently in socialist countries like Venezuela, we have seen entire currencies collapse and become less valuable than one-ply toilet paper due to out-of-control, skyrocketing inflation. 

Let’s pray we don’t experience the same monetary devaluation in America under the Biden Administration, or we will certainly suffer very serious consequences.

The answer is to stop printing money before it’s too late. Restricting the money supply by increasing interest rates to encourage investment and economic growth is the only way inflation can be tamed at this point.

President Biden is “sick” of Americans demanding accountability, but don’t let Lying Joe get away with denying his clear role and responsibility in negatively impacting our economy.

Remember what Old Joe told us in August 2020, 

"Here’s my promise to you," Joe said,

"I’ll take responsibility instead of blaming others.

I’ll never forget that the job isn’t about me — it’s about you."

Does Biden seem to be fulfilling his promise to the American people? 

I'm sure you can decide that for yourself.

Last updated: March 14th, 2022 at 15:03 pm