Tag: Inflation

Join Jim and Greg as they welcome the news that FTX Founder Sam Bankman-Fried is facing a truckload of fraud charges and luggage thief Sam Brinton is out at the Department of Energy. They also groan as inflation is still at an annoying 7.1 percent year-over-year. And while the growth of inflation is slowing, the administration and its media allies keep trying to make us believe the problem is over. And they shake their heads as the man who ran the 2020 Bernie Sanders campaign says the senator would probably take a hard look at a 2024 race for the White House if President Biden does not run again.

DeSantis-Crist Debate: Used Car Salesman Available

 

The debate the other night between Republican Gov. Ron DeSantis and former Gov. Charlie Crist offered actual meat coming from Gov. DeSantis, with the new fake plant-based meat coming from Crist. We’ve lived in Florida long enough to have lived under both governors. DeSantis delivered answers that belong to a real governor. He answered questions directly, based on real-life issues, both state and national, and his policies. For example:

He believes in teaching children the basics — math, reading, writing, history — and not distorting their young, fragile minds with confusing gender ideology, race-baiting, planet-worshiping, or any of today’s trends that young children should not be subjected to. He made it clear that parents decide their child’s health, which includes vaccines, their mental and emotional well-being, and their gender identity.

Schools are for teaching skills and all history — not selective, as it has always been. He rejected Common Core elements that left math and other skills more complicated than teaching needed to be, and heard teachers who wanted to teach and not be bound by countless tests — and a specific, nationally dictated curriculum. Teachers want to teach children, and share their gifts of enthusiasm for our country and all that it has to offer. I spoke to teachers and they told me so, and how they’ve been hampered by Common Core.

Inflation is here. After a 40-year hiatus, we’re now in the midst of the phenomena characterized by rising prices and declining purchasing power. Many had warned about it, but it became inevitable in the wake of the pandemic with the passage of the $2 trillion American Rescue Plan. Did policymakers and economists anticipate the danger of inflation from massive fiscal stimulus, only to have their advice ignored? Or were they complacent? To answer these questions and more, Harvard economist and Pioneer Institute board member Ed Glaeser recently interviewed Larry Summers, former U.S. Treasury Secretary and former President of Harvard University, for a special episode of Hubwonk.

Guest:

Join Jim and Greg as they applaud the direct and devastating attack from GOP New Mexico gubernatorial candidate Mark Ronchetti, as he blasted Gov. Michelle Lujan Grisham for grabbing the crotch of a male staffer, claiming she did nothing wrong, but also paying the staffer $150,000 to settle the complaint while forbidding the staffer from discussing the matter publicly. Ronchetti was also very effective at calling out the governor for imposing lockdowns she violated on numerous occasions. They also cringe over the latest consumer inflation numbers that come in worse than expected and prove higher prices aren’t going anywhere for awhile. Finally, they slam Politico Europe for naming Vladimir Putin as their top “green” figure because ending dependence upon Russian energy will force a revolution in renewables – ignoring the reality of people freezing to death and facing astronomical energy costs.

Join Jim and Greg as they wince over the larger-than-expected jump in the Producer Price Index in September and brace for the consumer inflation numbers tomorrow. They also discuss Jim’s in-depth reporting on Pennsylvania Senate candidate John Fetterman and the media that have coddled him for many years. And they shake their heads as the Quinnipiac Poll, which was spectacularly wrong at times in 2020, shows not only Sen. Warnock growing his lead over Herschel Walker but Brian Kemp and Stacey Abrams in an alleged dead heat in the governor’s race.

Fuel for Inflation

 

For financial markets, September 2022 was one of the worst on record. A nonstop bear market has been created by a decline in stock prices in excess of 20 percent, just as national output declines for the second straight quarter. These indicators point to a continuing recession. Inflation pressures have, as of now, brought the thirty-year fixed-rate mortgage to a 6.7 percent rate, up 1.5 percentage points in the past six weeks and double what it was in January 2022. The Federal Reserve has instituted a series of sharp rate increases to tame the inflation. But this remedy, even if justified, will drive down stock prices in the short run and, by raising the cost of capital, could well further dampen economic activity. Wages have risen in nominal terms, but well below the rate of inflation.

We are now past the point where any government response to monetary issues can reverse this downward trend. Instead, what is necessary is a hard look at the wide array of social and business policies that have led to the current malaise.

Recall for these purposes that the basic definition of inflation is too many dollars chasing too few goods. The rate of inflation does not depend solely on monetary issues within the Fed’s domain—it also depends on changes in the stock of goods and services. Sensible economic policies that aid growth will thus tend to curb inflation even with bad or capricious decisions by the Fed. But conversely, foolish economic and regulatory decisions will compound the problem by shrinking the economic pie in area after area; a key tenet of progressive thinking harbors the sorry illusion that if the Fed does its job, governments and businesses—often backed by government power—are free to pursue all sorts of collateral ends, most of which are counterproductive.

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Tomorrow is the first day of October, which kicks off the Hallowthanksmas holiday cycle. It’s time to put out the decor, and I usually do a fair job of it (see below).  We were already planning on scaling back a bit this year. I anticipated buying a few strings of lights to replace the old […]

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Riochet.com Editor-in-Chief Jon Gabriel is in for Jim today. Join Jon and Greg as they are pleased to see Dr. Oz and the GOP exposing John Fetterman’s radical record of coddling violent criminals. They also shudder as the government confirms a recession as the negative economic growth in the second quarter of this year becomes official, and they nod glumly as former Treasury Secretary Larry Summers ties the inflation mess back to a spending binge that started 18 months ago. And they sigh as White House Press Secretary Karine Jean-Pierre says it is not at all odd that President Biden would ask if a deceased congresswoman was in the audience because she was “top of mind.”

With Winter Coming, 20 Million Americans Are Behind on their Utility Bills.

 

A favorite polling firm is TIPP Insights, which has been conducting public opinion surveys such as the IBD/TIPP poll for about 30 years. I follow their work closely. Their polling of the 2016 presidential election (Trump v. Hillary) was spot on.

This weekend, they published the results of a new survey that should scare incumbent Democratic officeholders on the ballot on November 8th, at least the ones (all of them in Congress) who voted to hose the economy with over $5 trillion in inflationary spending over the past two years and are still at it (and that’s not counting the trillions spent during the pandemic when the Trump Administration shut down the economy). Our money supply (M2) has grown more than 40 percent since February 2020. Even most Democrats blame Biden’s policies for runaway inflation. Yelling “Donald Trump!” and “Abortion!” and other shiny objects isn’t going to save them.

Quote of the Day: The Economy and Government Mismanagement

 

“The Great Depression, like most other periods of severe unemployment, was produced by government mismanagement rather than by any inherent instability of the private economy.” – Milton Friedman

We are going to see a repeat of this over the next year or two.  We are headed for recession, and possibly depression (although no one will call it that) even if the Republicans take over control of both houses of Congress next year. Part of that is due to existing inflation. But an even larger part will be due to government mismanagement.

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  I’m not a person that understands the stock market all that well, but I remember someone significant in the media saying watch the bond market – when that goes South, head for the bunker, because all hell is soon to break loose.  Why is that?  This was back during the last disastrously dip and […]

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Join Jim and Greg as they breathe a sigh of relief that a rail workers strike is averted, although they’re curious to see the terms of the agreement. They also sigh as Biden again claims costs are going down as he hails the announcement. They’re also pleasantly surprised to see New York Times columnist Tom Friedman scolding the left to get serious about fossil fuel production as a way both to help Europeans in the face of Putin cutting off natural gas and for the U.S. to produce energy at levels that renewables cannot possibly match. Then they roll their eyes as the left freaks out over red state governors sending a few migrants to blue parts of the country but as no interest in dealing with the thousands of people crossing our southern border illegally every day. Finally, they remember former Independent Counsel Ken Starr and how the Democrats and the media turned him into a villain for investigating the unconscionable conduct of President Clinton.

Join Jim and Greg as they get a kick out of Arizona Sen. Mark Kelly tripping all over his words when asked whether he thinks President Biden is doing a good job. They also applaud Florida Gov. Ron DeSantis for giving some of his huge campaign funds to help elect other Republicans in his state, and they hammer Charlie Crist his for comparing DeSantis to Satan and himself to Christ. Finally, they cringe at the latest horrible inflation numbers that are getting worse in many ways, even as the Biden administration tries to convince us things are getting better.

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My discussion question for today: In a world with global and highly-efficient transportation and communications…and billions of people who are accustomed to low wages…is it possible for a country such as the United States to maintain its accustomed high standards of living for the large majority of its people?…and, if so, what are the key […]

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Mrs. Tabby and I just returned from dinner at a modestly priced restaurant that is part of a regional chain (dinners in the $12 – 15 range). We rarely eat out more than once per week, so our observations of restaurants are a bit hit and miss. It’s been a few months since we were […]

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Quote of the Day: Inflation

 

“Inflation is as violent as a mugger, as frightening as an armed robber and as deadly as a hit man.” — Ronald Reagan

I graduated from college and began my career in 1979. Inflation had been out of control since the first oil shock in 1973. Jerry Ford, despite a well-intentioned attempt to Whip Inflation Now, had not.

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Wisdom, honesty, truth and common sense go a long way – in politics and life.  So it’s hard to believe the words coming out of the president’s mouth that conservatives, mainly those that support a “Make America Great Again” philosophy, are now considered “semi-fascists”.  This is a lie.  Biden is labeling people because they want […]

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Join Jim and Greg as they welcome the news that badly outspent GOP candidates are getting an infusion of $160 million from Mitch McConnell’s Super PAC for the final push to November. They also shudder as Fed Chairman Jerome Powell says he will be acting aggressively to rein in inflation but that many people will feel “pain” in the meantime. And they hammer the FBI after Facebook Founder Mark Zuckerberg tells Joe Rogan how the Bureau told Facebook to be on the lookout to confront expected Russian disinformation. That led Facebook to limit the reach of posts related to the Hunter Biden laptop story.

Join Jim and Greg as they are glad to see a new poll showing the Ohio Senate race narrowly favoring the GOP. They also grimace as the Fed expects inflation to stay stubbornly high for awhile – even with persistent interest rate hikes. And they fire back at former NSA and CIA Director Gen. Michael Hayden for absurdly agreeing that Republicans in the U.S. are the most “nihilistic, dangerous, and contemptible group” recently seen anywhere in the world.

Join Jim and Greg as they assess Rep. Liz Cheney getting trounced in the Wyoming congressional primary, her odd Lincoln reference in her speech last night, and whether she is really planning to run for president in 2024. They also shake their heads as the political left and their media allies drop the bogus talking point that their massive spending bill reduces inflation and admit it’s just advancing their big government goals on climate policy and more. And they hammer Washington, D.C. Mayor Muriel Bowser for continuing to demand that all students be vaccinated for COVID before being allowed in schools when up to 40 percent of black students remain unvaccinated.