The reality of persistent inflation in prices across the board has finally set in, as Federal Reserve Chair Jerome Powell, fresh off a renomination from Brandon, said in remarks before Congress:
Nah, just kidding. He let everyone know that higher prices are here to stay for the foreseeable future:
“It now appears that factors pushing inflation upward will linger well into next year.”
If you haven’t gotten a pay increase in a while, now is the perfect time to ask for performance reviews, polish your resume, and ask for a raise. Or go job hunting to get paid more if your work is worth more, and you can find another employer who’s glutted with all that Powell money. Why should inflation happen to your costs of doing business and not others’ costs of your business?
The Fed chair did go ahead and ask people to stop using the word “transitory” to describe this bout with inflation:
“We tend to use the word transitory to mean that it won’t leave a permanent mark in the form of higher inflation. I think it’s probably a good time to retire that word and try to explain more clearly what we mean.”
How bad is it? 6.2%, a 30-year high:
“Prices for U.S. consumers jumped 6.2 percent in October compared with a year earlier as surging costs for food, gas, and housing left Americans grappling with the highest inflation rate since 1990.”
That’s the year it was the economy, stupid, which combined with Ross Perot running for president on the Reform Party ticket, and being allowed on the debate stage with Herbert Walker and Willliam Jefferson, led to Rush Limbaugh saving AM radio and becoming the most popular talk radio host in the 90s.
You know, because Clinton won. The mild recession (actually in ‘92 IIRC) was already over by 1994 when the GOP did something in the midterm elections so that you could append the word “wave” to color above. Fifty-four seats were flipped. Now that’s a wave. Then, we weren’t doing Blue (Dem), Red (GOP) yet. For some reason, that started in 2000, and people rolled with it.
The drastic increase in prices is the increase in new money created by the Federal Reserve and other central banks worldwide. The Heartland Institute breaks it down in a recent article at RedState:
“In 2008, the U.S. money supply was $7.5 trillion. By 2019, it more than doubled. As of this writing, it has eclipsed $21 trillion.”
As the Heartland Institute points out, an incredible amount of that new money was created just this year by the 117th Congress, with Brandon’s sign off on it:
“To date, the Biden administration has passed the $1.9 trillion American Rescue Plan, $1.2 trillion ‘infrastructure’ plan, and is on the verge of passing the largest spending bill in U.S. history, the $3.5 trillion Build Back Better Act.”
How to play defense against inflation: Increase earnings, cut expenses, pay debt fast, defer as much taxes on income as possible using tax-deferred savings vehicles, and use these accounts to buy inflation-proof hard assets.