The Wheels Are Coming Off the Biden Economy

…It means we have slow growth while inflation has hit its highest level in more than a decade at 5.6%. In addition, consumer confidence in the economy has tumbled.

All of this is a bit reminiscent of the economy of the 1970s. Does anyone remember the term stagflation? Those under the age of 40 probably don't even know what that is, and they've certainly never experienced it upfront and personally.

Here's the definition from Investopedia: "Stagflation is characterized by slow economic growth while at the same time accompanied by rising prices [i.e., inflation]."

Under Presidents Richard Nixon, Gerald Ford and Jimmy Carter, years of persistently high inflation triggered a surge in unemployment. That then led to the term "misery index." The sum of the inflation rate and the unemployment rate. It exceeded 18% in Carter's last year in office.

And then it was, "So long, Jimmy." With the economy sagging, Carter lost a landslide election to Ronald Reagan.

The lesson here is straightforward: The witches' brew of slow growth and higher prices is the ultimate curse for politicians.

Inflation, which had been relatively tame for 40 years, has been a cascading problem in President Joe Biden's first 10 months in office. The consumer price index suddenly galloped from less than 2% in the Trump years to 5% and 6% in the past four months. The cross-your-fingers hope by the Federal Reserve Board and the White House that the sticker-price rises at the grocery store, the restaurant and the gas station were only "transitory" have melted away like an ice cream cone on an August afternoon. Inflation is accelerating, and Jack Dorsey, the CEO of Twitter, predicts hyperinflation.

Let's hope he's wrong, but there is no plan in Washington or by the Fed to slow it down….







read more: https://www.realclearpolitics.com/articles/2021/11/02/the_wheels_are_coming_off_the_biden_economy_146674.html





Inflation is one of the biggest disasters that can happen to an economy. Only a deflationary Great Depression spiral is worse. Combining inflation with slow or no economic growth is stagflation. This is the brew that misery indexes are born of. This will be a disaster for Dems in the mid terms unless Biden reversed course and cancels reconciliation and reinstates Trump border and energy policies. Biden would rather risk losing in a landslide than do that.

 

I am sure partisons could cherry pick various economic stats that support that the great depression was a time of economic prosperity.

Walls of rhetoric aside, what do you think is causing our current inflation?

 

The supply chain, too many stimulation dollars chasing existing products, and the spike in energy prices which are excluded from base inflation.

 

It is not Biden's doing. The forces are even further beyond his control than his bowels. A lot of inflation is about the economies' only escape route from the liquidity trap we have been in since the recession. It is a global thing.

 

It’s all Biden’s doing. Trump has a great economic recovery going before Brandon let’s it up.

 

Trump's economy was crap. A three year old as President could have been as effective as he was as far as the economy.

 

Why then don't you explain why you ae so proud of Biden?

 

At no point in my posting history at this site will you ever find one by me saying I am proud of Biden about anything. Sorry I don't share your if your if you criticize one you support the other mentality. Life would be a lot simpler.

 

Trump's policies had the USA energy independent in less than four years. Biden has reversed those policies. Don't you see how that is hurting our economy in many sectors?

 

The Training Wheels Are Coming Off the Biden Economy

 

Yep. I paid north of 14% interest on my first home. I didn't ask for that disaster. Today, people who have the most to lose to runaway inflation are the instigators. They will end up owning nothing, exactly what they are lobbying for. Can't tell the geniuses anything, so they'll have to sleep in the bed they are making.

 

And that is True.
Productivity, progress and stability all go hand in hand. Stability is the control factor; the most critical element that enables the others. It comes from good policies and steady support of ethical principles in leadership- and of course, we have no stability at all in that respect today.That causes erratic events that can devastate an economy.

An example-
I sold 500 shares of CAR stock, which is Avis car rental a few months ago. IF I had still owned that yesterday, the one-day gain would have been $92K, because it more than doubled. The price of this stock over 12 months has ranged from $28.20 to $545.11, or 28X initial value. While that sounds like a good thing to the amateurs, it is in fact a sign of a huge and widening gap between what we see as rational and or crazy. It's not the company that has produced this, it is the volatility and emotions of investors. It demonstrates an extreme instability- and that is a double-edged sword, that in the long run will fall harder than it rises....meaning a depression could happen just as fast. It is impossible to read such a market, to forecast it and make the right decisions- and our entire economy is behaving this way. Inflation is a warning- fail to keep it under control by good practices, and it will eat you alive and lead to disaster.

 

It's so cute that you just ignore 2020 like it never happened. Trump left office with a .4% GDP growth average - the worst of any modern President.
Even before covid, Trump never got above a 2.9% GDP growth in any one year - the same as Obama.

 

That would be Dick Chaney's policies that made us energy independent and our economy's "suffering" pales in comparison to our competitors' energy prices. This is also a global problem having nothing to do with Biden.

 

And the Biden admin tells you that inflation is 5-6%, too. Every citizen who has to buy things knows that's BS. These people discarded reality and integrity quite a while back; the safest analysis of anything they say is that it's a lie designed to cover ugly failure.

The Trump economy was stable and genuine. The Biden economy is fluff and bat guano- a delusion perpetuated like a hoax. Gas-lighting, anything but truth.
The sad part is that the consequences of this farce will hurt everyone, not just the fools who created it or believe in it.
You have never in your life been as close to a true depression as you are right now- and the odds of that happening are very high. This administration gets total credit for that.

 

Silly people still think government can stop a virus.

 

Dick Cheney? Really? Biden is purposely killing our oil production to push electric cars but now has to beg OPEC to bail him out.

 

Not even the Federal Reserve can control inflation even though the Federal Reserve has affectively reduced the prime interest rate to near zero...Inflation will eat up any profits you could make from a CD investment.

 

Its even funnier you chose to just ignore Trumps economy pre Covid. I guess you don't want to talk about that, huh.

 

Guess you must just hate everybody! That way when things go wrong you can always say" I told you so!!"

 

More simplistic logic

 

I don't think I've ever seen a "profitable" CD anyway, at best they slow the loss to inflation. During the mortgage crisis, I talked my mother into giving me the last CD she had, $15K- to invest. A year later, she had $100K. Today's market however is more like a disaster waiting to happen than an opportunity. If it does happen, which I'm sure it will- the opportunity will be on the other side for those who protected their assets beforehand.

 

It's often called "common sense".

 

Trump passed the car on without wheels... Sad!

 

And others call it retardation. To each their own