Finance / Government Watch / Politics

Biden Says He’s Got Inflation Under Control but the Man on the Street Fears a Second Great Depression

inflation

WASHINGTON, DC, Oct 5 — Inflation is easy; recession is hard; and “stagflation” can be even harder for all of us. We’ve all felt the impact of the Biden inflationary cycle. It’s simple: the prices of everything you need — including the necessities of life — rise and rise again. Eventually, the nation falls into a recession.  In fact, some experts tell us we are already in a recession. But it’s not official until the National Bureau of Economic Research [NBER] says so.

USA Today explains “A recession isn’t determined by a negative quarter of Gross Domestic Product [GDP] or even two for that matter. Rather, it’s a significant decline in economic activity resulting from several factors, including high unemployment, a slowdown of goods produced and sold, and wages falling in addition to negative GDP readings.” 

However, Jim Reid, Managing Director and Head of Global Fundamental Credit Strategy at Deutsche Bank, says “We still think a recession is almost a slam dunk over the next 12 months but want to see more evidence of employment rolling over before we would call the current U.S. environment a recession.” Is that a bad thing? Not necessarily. Economists will tell you that we need a recession in order to see a decrease in consumer prices.

And then there is something called “stagflation.” The Harvard Business School refers to stagflation as “a nightmare scenario.” According to the Harvard Business Review, “What stands between a recession with above-target inflation and ‘stagflation’ is the Fed. If the central bank has the resolve to keep monetary policy tight despite recession, there is every chance that inflation can be wrought from the system. That requires significant strength and independence, as politicians, investors, and the public would push for rate cuts.” 

In fact, the Fed has already begun to “aggressively” raise interest rates in order to check inflation. It has raised the rate three times to three and three and a half percent, so far, and has indicated that it is likely the rate will go up to about 4.4 percent by year’s end and to 4.6 percent in 2023. 

These moves have increased the likelihood of a recession if we are not already in one, says the Economic Policy Institute. They tell us that a “common argument runs that inflation harms everybody in the economy, but only those who lose their job are harmed by recession. This is the opposite of truth. A recession directly reduces economy-wide incomes while inflation does not.”

Here’s some food for thought from Senator Mike Crapo [R-ID]: “In August, consumer prices rose 8.3 percent relative to a year earlier, rising higher and faster than economists predicted and more than double the historic long-run average of 3.3 percent. The Biden Administration’s inflationary policies have led to an average consumer price inflation rate of 6.1 percent during his term in office, more than triple the inflation average over the four years prior to Biden taking office, and far above the 1.4 percent he inherited in January 2021. Overall prices have risen 13.2 percent since the President took office. 

As bad as inflation, recession and stagflation might be, there is a fourth, unspeakable economic danger; it’s called a depression. It occurred only once in the history of the U.S., between the years of 1929 and 1941; it was called the Great Depression. No serious economist is likely to suggest we are headed for another Great Depression but recent polling shows that a majority of Americans are concerned about that possibility. A new survey by the pollsters at Rasmussen Reports found that “57% of American Adults believe it’s likely that, over the next few years, the United States will enter a 1930s-like Depression, including 21% who think a depression is very likely. Thirty-two percent (32%) don’t think a depression is likely, and another 12% are not sure. These findings haven’t changed much since May, when 55% said a depression was likely in the next few years.”

Bob Carlstrom, president of AMAC Action, the advocacy arm of the Association of Mature American Citizens, says “This November, Americans have an opportunity on election day to change the economic course that Biden and his congressional allies are taking our Nation. The negative outlook about the prospects of a deep recession or even a depression are clearly a reason for a change in the direction the current national political leadership is taking this country.”


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Thomas, Of Texas
3 months ago

Biteme can barely control his bowels.

NinaRae
3 months ago

You cannot trust anything that the current administration says, because they change their minds in the proverbial ‘blink of an eye’. This farce that’s being perpetrated upon the American public is outrageous. It’s just sickening to have to try & live in this Economy. They are intentionally destroying this Nation…undermining the Middle Class businessman…bait & promise tactics with Senior Citizens… outright lies to youngsters in college & trying to subvert Parental authority and fill our children’s minds with filth. The list goes on & grows continuously more disgusting. I hope & pray that people will Vote wisely in this coming election. Be aware of the backgrounds of those you support. May God Bless America & help her Citizens to regain control of their government.

Doug CRAIG
3 months ago

I think I have a clue to Biden control of inflation. If the supply is limited and you cant buy itThen you don’t pay a high price for it.

James J
3 months ago

jill and joe I Puke at just the thought of you two. Disgusting Pathetic Traitors .. faq u aholes

tika
3 months ago

biden doesn’t know the definition of inflation, recession, depression. they ARE precisely defined words used in the science of economics. to him and the uneducated elites, they are simply pejorative opinion.

tika
3 months ago

you can’t possibly control ANYTHING you don’t understand.

2004done
3 months ago
Reply to  tika

Creepyjoe is controlled by ice cream, but I doubt he can understand why he isn’t allowed it all the time.

Hal
3 months ago

One thing seems consistent about Biden’s pronouncements …. THEY ARE VIRTUALLY ALWAYS LIES!!!!

Tucker7518
3 months ago
Reply to  Hal

The increasing gas prices will help the Republicans in the midterms.

Wolton
3 months ago

Given that you made mistakes before, how do you think your wife would feel about you getting presents for a much younger female, married colleague? And texting with them, or them rating your looks and personality? I don’t think you are really clueless.

Sherri A Lucio
4 months ago

And I wonder how we got here? If we don’t get that failure out of the White House, The puppet for the Deep State we are doomed, and if people don’t see that, I just don’t know what to say anymore.

Hal
3 months ago
Reply to  Sherri A Lucio

We got here because we had to suffer the results of a rigged election. And it will happen again and again until the clear majority of citizens finally realize they are being duped by the DemocRat Party and the Republicans seem to be helpless.

2004done
3 months ago
Reply to  Hal

After a 2 year mask denier hiatus as a NY poll-worker, I was not surprised to see “Dominion” during the ballot machine startup display, but ‘unknown” from the instructor. I’m going to guess intentional ignorance was a factor, rather than duplicity.

Hal
4 months ago

Biden is full of what come out of the South end of a North bound Bull. More succintly … he is a weir liar!!

TPS
4 months ago

Well, if inflation was his plan, I guess he has it under control along with illegals crossing the border by the thousands daily/weekly!

Myrna Wade
4 months ago

Biden has said his spending bills “will not cost a thing.” Liz Warren claims the environmental programs authorized to spend huge numbers of dollars will save “trillions.” Those of us who lead real lives know these statements are wishes, not facts.

Mark
3 months ago
Reply to  Myrna Wade

Not wishes, just lies

BAE
4 months ago

Since January 2020, Joe Corn Pop Biden has destroyed so much of America; if it keeps up we will not recognize our own country. Since he is Puerto Rican, do we now call him Jose? I have to laugh to keep from crying!

Enuf Said
4 months ago

Biden doesn’t even have his DEPENDS under control! Ask the clean-up guy on aisle 5!!

JayA
4 months ago

Ask the average American that buys food, pays utility bills, buys vehicle fuel and pays health care if we’re in a recession. The answer will differ from the potato currently occupying the white house! (I refuse to call him President)….

bruce c wickstrom
4 months ago
Reply to  JayA

Who in the blue moon is this charlatan kidding? He cannot control his own family and he himself makes more gaffes than a late night comedian. We need divine intervention to save the Republic. RVN 68-69

Tucker7518
3 months ago
Reply to  JayA

Biden will continue to eat his expensive meals, and be cozy warm in the White House and in his mansions and beach homes.

Linda Baker
3 months ago
Reply to  JayA

How about the resident in office since he stole it.

teresa Ann d'alessandro
4 months ago

lies, lies, and more lies! he wouldn’t have a box of fleas under control! a danger and drain on this country

Rick
4 months ago

Sounds like the Man on the Street is way more intelligent than Joe. Of course, so is a rock!

Elena Tellez
4 months ago

Even if B-b-b-biden got his head out of his posterior, he still wouldn’t know what day it is, or what’s going on. As an economist, I totally disagree with the Fed (Jerome Powell), and think the Fed could be abolished with no harm done. We only have recourse in November to change our Congress… and in 2024, to elect a conservative (non-socialist, non-traitor) AMERICAN to the White House. If not, something drastic has to happen… Coup d’etat anyone???

mytake
4 months ago

Biden has no control of anything.

JayA
4 months ago
Reply to  mytake

Not even his bowels!

Stephen Russell
4 months ago

NO, Biden does NOT control inflation day 1

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