Wednesday, April 13, 2022
Expect record inflation by Election Day
On November 9, CNBC reported, “Wholesale prices rose 8.6% year over year in October, tied for highest ever.”
At the time, consumer prices were up 6.2%.On Monday, CNBC reported, “Consumer prices rose 8.5% in March, slightly hotter than expected and the highest since 1981.”
It took 6 months for the increase in producer prices (measured by the PPI) to reach consumer prices (CPI).
So what can we expect in 6 months?
Today, CNBC reported, “Producer prices rose 11.2% from a year ago in March, the biggest gain on record.”
This means the 6% hike in Social Security checks in January already is eaten up.
This also means that Biden and the Democrats will be very desperate this summer trying to distract our attention from their failures in Afghanistan, on covid and with the economy.
But while we can expect 11% inflation in November based on the PPI report, things are worse than that.
CNBC reported, “On a monthly basis, the gauge climbed 1.4%, above the 1.1% Dow Jones estimate and also a record.”
12 months of 1.4% increases mean a whopping 18% increase over a year’s time.
It could get worse because CNBC also reported, “On the producer side, prices for final demand goods led with a 2.3% monthly rise, while services prices gained 0.9%, up sharply from the 0.3% February increase.”
12 months of 2.3% increases in final demand goods mean a whopping 31% increase in a year’s time.
But that’s speculation at this point.
What we do know is the price of producing goods and services increased 11.2% in the past year and those increases will be passed on to customers.
Democrats are panicked.
Jeff Bezos in his WaPo floated the trial balloon of blaming greedy rich investors in a column by one of his minions today, “Big oil companies are using wartime profits to enrich investors, report says.”
These reports are always by some tax-exempt group funded by rich people who like to dabble in politics. Only millionaires can afford socialism.
Biden also wants to blame Putin.
But the blame game won’t cover the increase in prices. If anything, it shows how impotent Biden is. The unintended message is that Biden is letting oil companies and Putin shove him around.
If Republicans are smart, they will hit inflation hard and promise to bring it down by cutting the government in half. The beauty of this is that Biden won’t let a Republican Congress do that, so we will have to elect a Republican president
However, we are dealing with Republicans so don’t expect a red wave. They will do all they can to limit their gains in this election.
Electing Reagan killed inflation last time.
Inflation was 1.4% when Trump left office.
14 months later it is 8.5% and headed for 11% or more.
Posted by Don Surber at 4/13/2022 03:00:00 PM