“Oooh, goodie, inflation!” Imperial Leader Joe Biden exclaims. He gets so excited that aides need to grab a spray bottle. This particular form of economic insanity isn’t anything new for Joe. Back before his dementia set in, when His Wisdom was serving as Vice-President to the Kenyan, he told folks at an AARP town hall something they still laugh about. The only problem is that it wasn’t a joke. Biden was serious.
Inflation to balance taxes
On July 16, 2009, Joe Biden told people attending an AARP town hall that the only way to avoid bankruptcy was for the government to spend more money.
“Now, people when I say that look at me and say, ‘What are you talking about, Joe? You’re telling me we have to go spend money to keep from going bankrupt?'” Biden said. “The answer is yes, that’s what I’m telling you.” Now people keep complaining about inflation like it’s a bad thing.
“C’mon man, we need rising prices to offset the taxes,” His Wisdom declares. Under the economic voodoo affectionately known to Democrats as Modern Monetary Theory it’s a big game of rock, paper, scissors. Massive government spending fuels inflation which gets eaten by the huge taxes required to fund the massive government spending.
It all works as long as the system keeps moving. Since a country can’t default itself, in theory it should keep working forever. In reality, there is no such thing as a free lunch, when the music stops there aren’t enough chairs to go around. That’s when people start eating their pets, like happened in Venezuela.
Janet Yellen, top economic officials, and the crew who feed the creature from Jekyll Island named the “Federal Reserve,” are “trying to sell the benefits of inflation while soothing concerns about the potential risks as the economy emerges from the coronavirus downturn.”
They say that for far too long, the index was way to low. So really, its about time to raise prices. But “with the U.S. now seeing both prices and wages rise at much faster rates, policymakers are attempting to keep Americans patient.”
Give everyone a raise
The official solution to combat runaway inflation, endorsed by Joe Biden and his handlers at the palace, is to embrace “the upward pressure on wages, dismissing the rate of price increases as a fleeting quirk of the COVID-19 recovery.” Just give everyone a raise. Drink the Kool-Aid and it will be all right, they assure.
Even so, Old Yellen warns it could get tricky. “We don’t want a situation of prolonged excess demand in the economy that leads to wage and price pressures that build and become endemic,” the Treasury Secretary explains. “Looking at wage increases, you can have a wage price spiral, so you need to be careful.” That’s where taxes come in.
Yellen thinks that there is still lots of time to twiddle the knobs before things get worrisome. “I do not see that happening now.” MMT economists are all hoping to see a raise so they “generally agree that the risk of a rampant inflationary spiral akin to the 1970s is remote.” The inflation lessons learned back then were about as helpful as the lessons on racism taught by Archie Bunker and George Jefferson.
Everybody on both sides of the aisle loved peanut farmer Jimmy Carter while also agreeing that he couldn’t run a country to save his life. Gas rationing and a tanked economy weren’t something that older Americans have forgotten. Joe Biden seems real similar. The only difference is instead of Billy and his beer, we have Hunter and his crack. At least Billy didn’t get busted selling access to his brother.
Some economists are having nightmares about what we could be facing in the future when the Democrat pipe dreams pop like a soap bubble. Rising consumer prices are a problem and ignoring it is dangerous. “Even if you don’t think it’s a problem, and I don’t think it’s a problem for the economy, it creates problems for the Fed and pressure on the Fed.”
According to Adam Ozimek, chief economist at Upwork, “While I have as much confidence in Powell as anyone can have in a Fed chair, we have a lot of experience lately in the Federal Reserve raising rates too fast, and we know that people start to scream and shout when inflation even looks like it’s getting slightly above target.”