“President Biden called NBC journalist Lester Holt a “wise guy” Thursday when the veteran TV anchor pointed out that Biden erroneously said high inflation would be temporary and that instead it surged to a new 40-year high.
“I think it was back in July, you said inflation was going to be temporary. I think a lot of Americans are wondering what your definition of temporary is,” Holt said during the president’s first TV interview of 2022.
“Well, you’re being a wise guy with me a little bit,” Biden said. “And I understand, that’s your job.”
The federal Consumer Price Index found overall consumer costs up 7.5 percent in January versus one year earlier — dashing White House predictions that the figure would begin to fall.
Biden in December claimed that the prior month’s 6.8 percent annual inflation rate was likely the “peak.” He said in July that inflation was “temporary” when it was around 5 percent.”
Comment: Holt is about as mild mannered and inoffensive a man as you are likely to find in the news bidness. His question was as plain and simple as he is. It is typical of Biden that he instinctively snarled at the man. This is the real Joe Biden unmasked. This is the Biden who left so many behind in Afghanistan because they were inconvenient. This the president who now announces in advance that he intends to abandon more in Ukraine if his own silliness and weakness convinces Putin that he can make some sort of move in eastern Ukraine.
In the same interview Biden categorically rejected the Army’s after-action report that realistically depicts the sorry mess that his administration and his post grad pals at State and NSC made in Afghanistan. pl
with his history of sniffing young girls hair, don’t you mean dirty grandpa?
Recent coastal road trip in California- gas over $6.00 a gallon.
Come on, Highway One is worth it.
Biden’s inflation is a feature… it is how you get headlines like this on Bloomberg:
“Fattest Profits Since 1950 Debunk Wage-Inflation Story of CEOs” (November 30, 2021)
He has helped his corporate handlers claw back every single stimulus cent Trump gave to Americans, and then some. Just more hollowing out of America and the west, led by Biden and friends.
If one hops on over to Moon of alabama for today, you can see the logic of Biden playing out with regards to the Afghanistan central bank, basically outright theft.
The following two things will never happen, because these are against the interest of Biden’s handlers, but they would certainly lay the foundation for a true economic recovery.
(1) Close the IP , tax-sheltering loopholes American multinationals use to offshore profits to low tax jurisdictions.
(2) Add a 10-20% tax on corporate share buybacks. If the leader of a company can’t figure out what better use to make of the largess they have amassed (you know, by investing in research, infrastructure, giving workers real wage increases), then channel it into infrastructure projects that benefit large segments of society instead of the 10% for-the-big-guy crowd.
Build-Back-Better = Delay-Dither-Dump… the true Democrat working motto.
the current inflation is caused primarily by massive shortages in the supply chain and will be impervious to assault by the fed raising rates. just ask cal governor newsom why he has made it so hard for truckers to transport out of long beach port greatly aggravating supply chain backup with his absurd truck pollution environmental regs. the supply chain mess is intentional.
You might find this article interesting:
https://mattstoller.substack.com/p/corporate-profits-drive-60-of-inflation
It would be nice, and easier, if it was as simple as you make it out to be. But it is not. Cost push and demand pull inflation driven by transportation costs or supply chain shortages are but one part of what is driving our inflation.
Fiscal policy and monetary policy are the other components, and look like the larger drivers of inflation. Carefully raising interest rates and reducing other monetary stimulus are appropriate remedies for them.
Fiscal policy, running over a Trillion a year in budgeted deficits is very stimulative. Deficit funding of things like the $1.9T recovery act early last year, and the other deficit financed covid support acts, are major additional fiscal policy contributors to inflation.
Monetary policy in the form of quantitative easing through which the Fed has been buying $120B a month in Treasuries (close to half the deficit funding, although that is now easing), mortgages, and holding interest rates close to 0% for wall street are also major contributors.
Nobody can tell precisely how this toxic inflationary stew cooks, but supply chain issues are likely condiments to the main brew.
Worse, it is looking like the Fed is ready to hit the panic button. Goldman Sachs predicted the other day 7 1/4 point interest rate hikes this year, in addition to previously announced abrupt removal of the quantitative easing stimulus. Shades of the Greenspan debacle in the oughts.
Interest rate changes take around 6 months to work their way through the economy. Greenspan would make a change, then in a month or so make another. By the time the effects of the first change became clear there were already several more stacked up behind it in the pipeline. What could go wrong with that?
Today that could leave us with a recession around labor day right in time for the midterms, not good news for incumbents. Watching the Dems coming up on elections and squeezed between inflation and recession would be schadenfreude fodder if the prospects for the country and world were not so grim. Wag the dog, Ukraine and/or Iran anybody?
Lefty I agree with your analysis re inflation. It is text book. Can it be that the socialist government doesn’t understand the causes of inflation? Or is it possible that inflation is intended. Most observers could see it coming 6 months ago. Maybe the government just doesn’t give a damn?
National debt 30T
US pop 331M
each breathing body owes 90k
tell me how that gets paid off?
If interest rates rise to 6% on the 10 year bond the repay cost will skyrocket.
https://usdebtclock.org/
https://www.thebalance.com/interest-on-the-national-debt-4119024
we’re passed the point of no return Lefty. Devaluation leading eventually to hyperinflation. Biden wants his own war to distract the peasants.
I don’t believe our views are incompatible, nor in opposition in any practical or meaningful way. If you believe that to be the case, I’m not quite sure as to why. Perhaps if you engage the principle of charity as you read my response below, you will come away with similar feelings to my own on their essential compatibility.
Inflation and interest rates have an effect, only when they affect future expectations. Other than missing that ingredient in your analysis, it is quite good.
You are probably aware of the fact that in late 2019 and early 2020, China and the US were both sliding into a recession, the monetary easing that the pandemic allowed, allowed us to postpone the day of reckoning for previous periods of economic distortion caused by previous loose monetary policy.
During the pandemic, Trump attempted to help the average American, Biden doesn’t even make an effort–he flatly doesn’t care how bad the electorate have it, we are all deplorables unless we are part of his select club. That is why as a stimulus measure, War is so much more appealing and preferable to this president and his handlers, than continued pandemic stimulus funding that benefits the many, and not just his close connections–War is a policy tool offering select benefits more efficiently to those who matter.
One way to drive down inflationary costs is to drive up the value of the dollar to lower the cost of imports. How do you do that while continuing the monetary easing you mentioned–one measure is by increasing geopolitical risk, thereby increasing the appeal of the US dollar as a safe-haven.
It is important to keep in mind, that what might complicate the traditional analysis of inflation and interest rate effects in our current times, is the fact that now, for the first time in perhaps a century, there exists a highly interconnected economy–China–that is as capable of massive credit creation on par with or beyond that of the US. The US is no longer the only game in town for fiat ponzi printing policies.
A swamp triggered war in Ukraine is a very real possibility. I’d be surprised if we make it to Friday without one.
Wow guys, thanks for the thoughtful responses.
Bill, thank you. I think a couple of things happened. We’ve gotten away with very low interest rates and inflation since ’08 so everyone got used to it. Then the Modern Monetary crew is clueless. They think we can print money forever and have no consequences. Wrong! Thirdly we’ve got an equally clueless crowd in Congress who failed to understand that trillions of dollars were a lot of money. To update Everett Dirkson from long ago “A trillion here a trillion there and pretty soon you’re talking about real money.”
Southpoint, it’s easy, but not pleasant. We inflate out of it. If interest goes to 6% and inflation is 7.5% like it is today, the real cost is -1.5% and the value of old debt declines at the rate of inflation. I’m old enough I had a mortgage in ’77. It was a stretch on what I was making. By ’82 the mortgage more resembled my electric bill that had inflated along with the economy and my pay. It was no longer a stretch.
Mapleleaf, although under yours, my initial response was to Ted’s simplistic view. I’ve got no problem with you. I apologize for not making that indefinite antecedent clear in my initial response.
I would suggest that inflation and interest rates have an effect when inflation erodes the value of past debt and interest rates choke off current investments. It ain’t all future expectations.
You’re right, by late ’19 and early ’20 we were in the late stages of a heck of a long bull market. It had to end sometime, but huge fiscal and monetary stimulus put off the day of reckoning.
I’m not sure if Biden does not care about people or if he is so far into dementia that he is clueless. Even when he had something that passed for a brain he was not a bright bulb. I also respect our host’s up close and personal observations that old Joe is a bully whose choices are screaming and threatening to fight. My real fear is that because the !@#$% neocons are still driving we have learned nothing from 20 years in Afghanistan, Iraq, Syria, etc, etc right back to the Cuban Missile Crisis and nuclear war that the world escaped in ’62 by the hair on it’s chinny chin chin.
There is no reason to expect Putin to be any more tolerant of NATO camped on his border with potentially nuclear missiles than we were with USSR missiles in Cuba. Presuming we survive the neocons current incitement to war in Ukraine the longer term issue is that we have driven the Russians into the arms of the Chinese. We would have been far better of if Putin had gotten his druthers and became a participating part of Europe.
I think you’re also right about the Chinese economy. It is big enough and when combined with Russia and others it is entirely possible in the foreseeable future the Yuan will become an accepted world reserve currency with all that implies. The Nord Stream gas and other Russian natural resources may also shift to China instead of Europe.
Nice work morons. Us boomers have really screwed the pooch, and it’s bipartisan.
I think one lesson learned with cryptocurrencies, is that any reasonably viable institution can issue a script of some sort. Before the Fed, individual local banks issued their own forms of money. Now the local banking system has been folded into the big banks, when the dollar starts imploding, the state governments are going to have to step in with their own forms of local currencies and we will find it to be a slippery slope to the break up of federalism.
I just read in Princeton Alumni Weekly that Princeton University’s endowment has increased 50 percent over the past year. Some people have been doing well in the covid turmoil.
Everyone’s investments have done well after Trump supercharged the economy. Endowments should do just as well.
Because a lot of alumni are no longer giving to woke colleges. Any endowment growth may not necessarily come from the alumni.
Princeton activist alumni recently created a free speech push back group, that has strong appeal for their disgruntled Tiger alums. Good mailing list for anyone wanting keep up on the front lines of evolving academic freedom.
Princetonians for Free Speech – alums push back against the tyranny of wokeness on many university campuses:
https://princetoniansforfreespeech.com
MapleLeaf,
all those covid shutdown orders had nothing to do with concentrating wealth at the top.
“If the leader of a company can’t figure out what better use to make of the largess they have amassed (you know, by investing in research, infrastructure, giving workers real wage increases)”
“Investing in infrastructure” It sounds like you never worked for a corporation or even a small business.
If you like fighting strawmen so much, I suggest going out into a field and looking for a scarecrow.
“all those COVID shutdown orders had nothing to do with concentrating wealth at the top.”
Just ask yourself, what was allowed to remain open? What companies, in which sectors, benefiting which particular people? Don’t see a connection between those people and the political elite who instituted those measures?
You can find the information for that in less than an hour.
You’re 100% correct. The vast bulk of PPP ‘s trillions was funneled directly to Wall St. A replay of Obama’s TARP.
Heads, Wall St. wins, Tails, Wall St. wins.
The bulk of US debt(soon to be worth a whole lot less) is actually owned by clueless sheeple Americans is their pathetic Wall St. controlled IRAs.
Yeah yeah. “Infrastructure ” is invested in by what business of any size? A new tax on “corporations ” funneled into infrastructure “… that’s the same line Obama-Biden gave us a decade ago.
His Dementia is Obvious..The worse it gets ..The Mean..Angry..and Offensive TheY Get..He Refuses The Cognitive Tests and should have Brain Scans for His ast Brain Damage..Any Curret Mini Strokes and Bran Bleeding.
He also Should Be Given Blood And Urine Tests..For Screening..To See How Whats in His System (Steroids} etc That could Affect His personality..and cause changes.
He is Obviously Being Prevented from That By His Wife and Others..He Has a White House hysicial..We Should get a Public Report from Him.. His STATUS is a CRITICAL National Security Matter..
What’s the alternative? Kamala Harris as president?
Alternatives:
Many Options on The Table. IMO..
.Actions…
POTUS..His Cabinet and Congress..MUST Immediately
Recognize andi ..JOINTLY ACKNOWLEDGE,,,,,,
that The United States.,Is In a State of War..DEFCON ONE.
COCKED PISTOL…
Senator PELOSI..Muss CANCEL The Congressional RECESS
she Called..For the Next TWO Weeks..How Stupid and Negligent In The Middle of All This..DESTRUCTIVE..
For anyone Interested in That Situation..I would Urge You To Go To WISCPOLITICS.COM and Read The Story about a Story With The Header,,”U.S. Rep Gallagher Calls on CONGRESS
To CANCEL RECESS,Properly Fund The Government..
Its short artice..but Very Informative..
That SHOULD Be Done. IMO NOW…
Stay IN Session..Past Budget Itemas and Gallager Says..
Members On The Intelligent Committes..Should Be Going To the White House..For Daily Briefings…..The Daily Press Briefings..are Grossly Irresponsibe..We Deserve BETTER..
Our Southern Border MUST..Be Closed Immediately..RE; Concerns about All Tyes and Levels of Infiltration..Already
PROVEN..Homeland Threats..9/11 Responses..
Thats How I see It..JT
I should add that hyper-ambitious generals who “trained” the Afghan forces not only did a poor job but they then lied about how well they had done. that contributed to the mess because the state department is incapable of dealing with harsh reality.
Might they have actually believed those lies?
Which of the two situations would be the more ominous?
They were lying about Vietnam 50 years ago.
Either inflation or popping the market/debt bubble. Which will it be?
While it might seem obvious they should fight inflation and let the market take its lumps, they can’t. Massive debt has become an integral part of the economy. It would be like telling a three hundred pound couch potato to stop eating and go to the gym. Put it in the failed New Years resolutions category.
The whole Ukraine fiasco is to try maintaining the international dollar market, including oil. As well as trying to recoup all the money put into shale oil and gas in this country, that can’t compete with many other producer’s price points.
Given the latest headline, that the Russians are going to invade before the end of the Olympics, it seems like the situation is rapidly going parabolic. If they don’t, what’s the next move?
JM
My guess is that Russia will recognize a declaration of independence of the eastern, Russian culture provinces, and then sit back to see what Biden does.
They play chess, we play checkers.
pl,
The Communist Party submitted the initiative to recognize the DPR and LPR about three weeks ago. It’s being discussed and negotiated in the State Duma for submission to Putin. What that will do is put the final nail in the coffin of the Minsk Accords. Kyiv doesn’t seen overly concerned about it. They figure Russia is already in the breakaway republics and they were never keen on fully implementing the Minsk Accords anyways. Washington won’t recognize the new republics any more than the annexation of Crimea was recognized. That’s all Biden has to do in reaction to any recognition of the republics’ independence. We refused to recognize Moscow’s occupation of the Baltics for 50 years without going to a shooting war. It really depends on what Russia does after recognizing the new republics. Will they openly move Russian forces up to the present contact line? Will there still be artillery exchanges and sniper fire once Ukrainian and Russian forces are openly facing each other?
TTG
Why is it that the CP or whatever it is called now is carrying the freight on this?
pl,
It’s the CPRF, Communist Party of the Russian Federation. Although it’s almost inconsequential in the Duma, the CP introduced the bill rather than United Russia. My guess is that this gives Putin an out if the whole recognition idea turns to shit at some point. If United Russia didn’t want it, the CP would get nowhere with its resolution. The Kremlin already signaled its support for the resolution.
United Russia party member Alexander Borodai said he expects the Russian military to go to war with Ukraine if Moscow recognizes Donbas independence. “A war will become a direct necessity,” said Borodai, a former Donetsk prime minister. “Russia would have to take on some security responsibilities.” Of course, Borodai was not speaking for Putin when he said this.
I see a strong probability that Ukraine will militarily attack Donbass in the next few days, of course firmly backed by OTAN since it is what it has always been about. It would instantly be followed by a deep market crash and inflation REALLY skyrocketing.
If Biden runs again, next time anyone praises his “empathy” all the Republicans have to do is run that clip of him snapping “That was four days ago, five days ago!” at George Stephanopoulos when the latter asked him about Afghans falling from the sides of planes.
Straight up tyranny or the CCP. Pick your poison. I have the front runner over here in TX Crenshaw with flyers about the border but brags about Chile like his religion. Chile is HARDCORE COMMUNISM. What are my options seriously. Fight to the death I guess..meh.
Elections used to be the jewel in the crown of our unique form of democratic governance. Election years now are hazardous to the very health of our nation. Too much power, money and self-interest are now at stake.
“Elections used to be…”
Do you know Fred Reed?
He has some funny opinions about democracy. 😀