Axios: Don’t Fear Inflation

This is another one of the Biden administration’s many experiments.

How much spending can the federal government get away with without raising taxes to pay for it? How much funny money can the Fed inject into the economy before it overheats?

Axios:

“Inflation isn’t always and necessarily a bad thing. It’s one of many variables in the economy, and its presence helps some groups of people and harms others. But that kind of nuance is getting lost in the present debate. …

Where it stands: The messaging from the Fed and the Biden administration is clear. Consumer price inflation has been low — too low, and in fact — for many years. As we recover from the pandemic, it might be high for a while. But that’s likely to be temporary, and nothing to worry about.

Inflation hawks, led by Larry Summers, disagree and warn it could accelerate beyond control. Invariably they conjure up images of the 1970s. …”

Nothing to worry about.

We seem to be hearing that one a lot these days.

Washington Post:

“Prices were up by 3.6 percent in April compared to a year ago, continuing a trend of rising inflation, although economic policymakers say the increases aren’t here to stay.

Data released by the Bureau of Economic Analysis on Friday showed that prices rose 0.6 percent in the past month. However, consumer spending fell 0.1 percent in April compared to March, after adjusting for inflation, as stimulus running through the economy began to slow down.

The latest inflation data is unlikely to rattle the Federal Reserve, which is charged with keeping prices stable and unemployment low. Fed leaders have argued for months that a rise in inflation will be temporary, and that prices will simmer down as the economy reemerges from the pandemic. …

The Biden administration also expects that inflation will rise over the coming months before tapering off to more sustainable levels. On Thursday, Treasury Secretary Janet Yellen said that “as the economy gets back online it’s going to be a bumpy process.”

“I don’t think this is endemic inflation,” Yellen said. …”

Breitbart:

“A key measure of inflation accelerated to a faster-than-expected 3.1 percent annual gain in April, the Commerce Department reported Friday.

The last time the core personal consumption expenditures index hit 3.1 percent was in May of 1992, when George H. W. Bush was president and inflation was still recovering from the stagflationary 1970s era. …”

I guess we will see.

I’ve created a new category so that can track these predictions about rising crime, inflation, gas prices and illegal immigration over the next year. If this is ass covering, we will find out eventually.

About Hunter Wallace 11099 Articles
Founder and Editor-in-Chief of Occidental Dissent

11 Comments

  1. Inflation is actually good thing. It wipes away enemy main power source, the money. In short, it will hurt a lot of ours but in longer term, inflation will destroy enemy power like in Soviet Union or Weimar Republic and opens the door for real reformers like Adolph.

    Money is their main power source and thanks to this, they will corrupt every last instance what we have so before destroying enemy finance, all our victories are only temporary symbolic hooray.

  2. Um, the Federal Reserve has been trying to start inflation since George W. Bush was President. The entire reason he appointed Bernake to Fed Chair was because Bernake was known for his theory that the Fed caused the Great Depression by restricting the money supply after the ’29 crash thus causing a deflationary collapse, and that the Fed could simply “throw bags of money out of helicopters” to prevent a deflationary cycle. That is why they called him “Helicopter Ben.”

    So it’s finally working. It took 15 years, but it’s finally working.

    Conservatives are f-ing morons. What kind of idiot would actually want a deflationary cycle? I mean, unless you are sitting on multiple millions of dollars in cash.

    Are you sitting on multiple millions of dollars in cash? No? Then you really don’t want deflation, now do you?

    “Oh but prices are rising.” Um, yes, that is the entire point.

    You CHEERED when the stock market went up – that was the inflation. Now it’s trickling down to gas prices and you are mad?

    Right-wingers are idiots. I mean, Ron Paul was great on foreign policy but he was a moron with his “gold standard” bullshit. Did any of these right-wing idiots even take, like, Econ 102?

    • Ya the part your missing is most productive workers don’t receive annual wage increases that keep up with inflation (if the get a wage increase at all) so your just taking a 3% payout year after year.
      I make $25/hr, same as the job was paying in 2009 difference being I would need to be making $31/hr today just to be at the same effective income level.

      Inflation with stagnant wages is just a wealth transfer from the worker to the owner. Not to mention what it does to long term loans like mortgages…

      p.s. stock market is financial exploitation of the productive and wealth extraction.

  3. I believe Juri is correct here but it will be terrible to go through. Runaway inflation, destruction of the currency, defeat in war, massive corruption, loss of social cohesion all destroy the legitimacy of government, in this case the Left Wing Establishment that has ruled the U.S. since the 1930’s. The idiots running the U.S. Government (not Dementia Joe) act as though there were no problems, they don’t see the freight train coming at them at 100 MPH.

    “Inflation isn’t always and necessarily a bad thing. It’s one of many variables in the economy, . . . ” sort of like being a little bit pregnant?

    • @12AX7…

      I agree with you that clouds are over us, though, I am not so sold on the future being bleak.

      Never forget that, for all our problems, our infrastructure, economy, local and state governments still function far beyond most countries, which is why so many rush to come here.

  4. It’s not the deficit spending that’s the problem. It’s the truck driver shortages and supply chain disruptions from Covid-19. The plutocrats love to scaremonger about “printing too much money” so the masses won’t demand things like Huey Long’s “Share Our Wealth” proposal. Right now, the government should be spending even more money to subsidize the wages of truck drivers and enacting regulations to make the home/work balance more bearable for them.

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