Biden is tanking the US economy. Ten facts explain what is going on, how Biden’s incoherent economic policies are affecting all Americans, and what to expect. Is recession inevitable? No. Is it becoming likely? Yes.
First, the elephant in the room is inflation. A gallon of gas nips six dollars, edges seven in California. Annual inflation jumped to 8.6 percent in May, outpacing forecasts, the highest since 1981 – will continue.
Sector and commodity prices are telling. Nationally, gas is up 49 percent, fuel oil 106 percent, natural gas 30, high-protein foods like meat, fish, and eggs up 14 percent, food up 10 percent, and electricity 12 percent.
Pause for reality-identification: The electric car craze may slow when people realize electricity in those fancy e-pumps comes from the power grid. The grid is 60 percent run by fossil fuels, the other 40 half nuclear and half renewables.
The more you buzz about electricity, the more oil and gas – and uranium – get used. And the holy grail of wind and solar is pumped up by Biden-Harris-Kerry, exactly nine percent and three percent, respectively.
Note that seniors are hit harder and use more high inflation commodities such as oil, high protein food, electricity, medicines, and things requiring high energy inputs; therefore, Biden’s inflation hits seniors the hardest.
Second, consumer confidence is vital. Why? Because consumption drives the economy, all growth, jobs, innovation, and real wage hikes. How is that doing? Down in May, with inflation and interest rising. University of Michigan survey showed confidence at an 11-year low.
Third, consumer actions are key. Private studies note that Americans are concerned about savings and making regular payments, such as credit cards. A third is now worried, and the number is rising, which is not good.
Fourth, the Federal Reserve is responding to inflation as if driven by growth, which is awkward since growth is only fast by comparison to COVID times, or phantom growth. The Reserve just raised rates “75 basis points,” three times what they signaled. The prediction is rates will now “rise throughout the year.”
What this means is simple – the price of borrowing for anything, homes, cars, schools, clothes, and credit cards will rise. Prices rise not just from inflation but interest rate hikes. This is all a response to Biden’s inflation, driven by an indefensible energy policy and mass overspending.
Things begin to cascade. Inflation, with falling confidence, lower consumption, and higher interest, which also means higher interest in our $30 trillion national debt, will surely trigger higher unemployment or negative growth, that is, a recession or perhaps stagflation.
Fifth, talk about unemployment. Biden and congressional Democrats first gave away COVID relief, much of that disappearing and spent elsewhere, then doubled unemployment benefits – making it better to stay home. This meant fewer people looking for work, causing wages to go up artificially, and again, damage done.
Unemployment is based on jobs open for those looking – not those on the sidelines. So, as all this adds up, a wave of higher unemployment is coming, more people looking, jobs drying up under the pressure of high-interest rates, lower consumption, and tightening of belts.
Sixth, the real estate market has been hot – but is cooling. People fled unruly and rioting cities, resisting “defund police,” – but now interest rates are high, and mortgages will get expensive. Good? Hardly.
Seventh, energy hits everything – and Biden shut down big parts of the sector, reversing energy independence. That drove shortages, price hikes, and inflation, but also hit other sectors like fertilizer (petroleum based) and diesel (used in trucking). Biden’s war on oil is a war on consumers.
Eighth, Congress bears blame with Biden. Overspending is – independent of extra benefits and earmarks – out of control. Congress dumped another $3 trillion into debt, which cheapens the dollar, creates waste, takes private money, and adds to bureaucracy.
Ninth, Biden reversed Trump’s deregulation, putting a new drag on the private sector every day, restricting property rights, income, and jobs. Hundreds of new regulations suffocate job creators.
Tenth, public trust in government is vital, especially for economic decision-making. From taxes to regulation, incentives to forward planning, predictability, and truth are key. Biden has eroded that fast as he pushes fiction as fact and jars investors.
Examples are legion. Biden has soft-shoed his ties to China, pretended killing pipelines was irrelevant, said inflation is “worse everywhere but here” (totally false), Russia’s fault (false), no overspending (false), solved COVID deaths, bad recovery numbers, etc.
In short, the Biden White House, aided by congressional Democrats, is tanking the US economy. Is recession inevitable? No. Are the odds increasing? Yes. Will this bear on midterms? Take a guess.
States are sovereign and can operate as long as it doesn’t go against state or the U.S Constitution . Why can’t any state drill oil and convert it to gas and tell D.C. to blow it out their backside ? Regulation of oil drilling isn’t one of governments duties by the Constitution. It’s time for states to stand up against Big Bro . States wouldn’t need government funding if they produced their own petroleum. In fact, we could sell gas to Biden for $10 a gallon !!
It is a known fact that humans vote based on the incumbent….
Isn’t that special, you are paying Twice as much for Gas than you were a years ago, going from $2.39 a gallon to $5.00 and good-Hearted Joe wants to knock off 18 cents for 3 months and will only save the Seniors less than $20.00 all the while depleting the Highway trust Fund by 6.3 billion so the Roads will go to hell and will be unfit to drive on, He’s so stupid who tie’s his shoe’s. Old Jimmy Carter is happy, he now has 2 presidents more worthless, Obama and Biden.
This article is right on.
I was talking with a buddy of mine, that is 2 years younger than I am, and I told him, “When I was your age I was paying $1.239 per gallon of Gasoline.” It took him a while, but he figured it out. Gasoline has nearly QUADRUPLED here.
RBC,
The Biden administration isn’t tanking our economy. They are merely transforming or “transitioning” it to conform to what most of western Europe looks like these days. High inflation, high gasoline and diesel prices, high food costs, high housing costs, etc. etc. resulting in low to no growth economies with growing unemployment and ever high taxes. At some point, it is hopeful the majority of the American public will wise up to where we are being herded before it is too late.
As for the so-called electric car craze, there isn’t one. At least not one widely driven by the consumer. What you have is governments all around the world raising their emission standards so high that only an EV can meet them. Thus forcing the car companies to race to crank out high cost, money losing EVs, which require a government subsidy and our existing power grid can’t support in any meaningful volumes. The entire move to EVs is being driven by governmental fiat.
By the way, I’m sure you’ve already heard that Germany is moving to re-open their closed coal-fired power plants to try and address the rising costs of electricity. So much for “green energy” as they decommissioned their nuclear power plants and some of their natural gas power plants just a few years ago. Now they are being forced to go to the dirtiest form of energy generation. At least France was not stupid enough to shutdown all their nuclear reactors and go to windmills and solar farms. Meanwhile the Chinese have recently announced that they will be building 150 new nuclear power plants in China over the next 15 years, along with more coal fired power plants.
Is the photo attached to this article, suppose to make us think, Biden has a working brain? NOT WORKING!
Thank you for looking up the source of electricity: “The grid is 60 percent run by fossil fuels, the other 40 half nuclear and half renewables.” Added to that I’m told solar “renewables” are horribly polluting at the end of their life cycle when they must be replaced. Hopefully enough will be realized about electric cars before they become all we can buy.
The economy is tanking. In other words, all is going according to the Globalists plans. When America fails, Biden and his globalist cohorts can build back globalist as part of the one-world government.
It would be nice if the leader of the free world had an IQ greater than room temperature! Having lost all credibility, this useful idiot will definitely be replaced by someone more clever and evil very soon!
A few notations to back up Mr. Charles 10-fact article for disbelievers:
Presidential Executive Order 14008, signed 27JAN2021 and published 01FEB2021 govinfo.gov/content/pkg/FR-2021-02-01/pdf/2021-02177.pdf” target=”_blank” rel=”noopener nofollow ugc”>2021-02177.pdf (govinfo.gov) was precursor to establishing policy having devastating effect to present and future food and energy security the world over, regardless of never-ending Eurasian and European tit-for-tat wars:
Part I – PUTTING THE CLIMATE CRISIS AT THE CENTER OF UNITED STATES FOREIGN POLICY AND NATIONAL SECURITY.
President Biden was energy specific in Section 102(h) where he directed that, “The Secretary of State, the Secretary of the Treasury, and Secretary of Energy shall work together and with the Export-Import Bank of the United States, the Chief Executive Officer of the DFC, and heads of other agencies and partners…identify steps through which the United States can promote ending international financing of carbon-intensive fossil fuel-based energy…in consultation with the Assistant to the President for National Security Affairs.”
(Prior to the above directive, Bank of the West, 2018, discontinued fossil fuel-based loans to long time business clients – mine included)
Part II – TAKING A GOVERNMENT-WIDE APPROACH TO THE CLIMATE CRISIS
Section 208 specifies, “…the Secretary of the Interior shall pause new oil and natural gas leases on public lands or in offshore waters pending completion of a comprehensive review and reconsideration of Federal oil and gas permitting and leasing practices…”
Section 209 provided the OMB and National Climate Advisor that, “…Federal funding is not directly subsidizing fossil fuels,” and that coordination is had “…to eliminate fossil fuel subsidies from the budget request for Fiscal Year 2022 and thereafter.” (See P.L. 117-103 – H.R. 2471)
As well, Public Law 117-58 govinfo.gov/content/pkg/PLAW-117publ58/pdf/PLAW-117publ58.pdf” target=”_blank” rel=”noopener nofollow ugc”>PUBL058.PS (govinfo.gov) originated in the U.S. House as H.R. 3684 – Investing in a New Vision for the Environment and Surface Transportation in America Act or the INVEST in America Act (2,739 pp with some 536 amendments). The aforementioned title would never have seen the light of day in the Senate, so the short title of H.R. 3684 was changed to read “Infrastructure Investment and Jobs Act” in the U.S. Senate on 10AUG2021 to entice about 19 Senate republicans to attach their names to the final 1039-page document and allow President Biden the luxury of calling the $1.2T albatross, “bi-partisan” on 15NOV2021. This law also places the term “intrinsic value” as an asset, e.g., “collateral”. Hang on to your purses and wallets.
There are reams more documents signed by President Biden with bi-partisan blessings of the U.S. Senate to back up all of Mr. Charles 10-facts, and then some. Thank you, Mr. Charles, for putting them in a nutshell.
I belive that this has Obamas name all over it everything that Biden is doin he wants America to collapse. When he became president that was his goal in the first place, Biden is the puppet he can’t even think for his self he just signs everything. Pelosi and Schumer is also in on this, and trying to spend as much money as they can as fast as they can so the infrastructure of America will collapse. This has nothing to do with a green new deal it is all part of a one world government, and they don’t care who they hurt or kill to get their, I know kill is a strong word but looking at the far left track record and supporting the riots ,and dozens of food processing plants burning down or plane crash you know that the far left is behind it because nothing is being done about it and the fake news hasn’t said anything about it, My question is how much more do we have to take before we start seeing the elites get arrested for their crimes .
Biden is a jerk.
Thanks RBC, mostly a fact based article on our current state, sadly enough… Since we are only (6) days away from the 2nd qtr. of negative GDP growth, I think it is safe to say we are in a recession now, at this late stage it is mostly academic in ether case as the US economy stumbles along due to the complete incomitance of the current/former Obama regime. Does anyone remember where we were in 2008 & 2009 under the Obama administration? What is going on this moment is eerily similar to the early Obama years but this time around the economic damage is predicted to be even far worst…
Only a fool would be doing all these Trump reversals from day one in office, these things are not the results of a fool, they are all part a greater global elite plan to remake America & the world into this so-called Global Reset… In many quarters this so-called global reset is already falling apart as people are slowly beginning to open up their eyes & asking questions to what is really happening, hopefully we can stop it in it’s tracks in all eventualities, perhaps in the Nov midterms, if not, America will potentially be in serious trouble…The hole is getting ever deeper by the day, if we don’t stop this madness soon, we may not be able to crawl out of it! Prime rate currently set at 1.5% & they are shooting for 3.5% over the next (6 ) months, that like all things in this life, is subject to change with inflation currently at 8.6% & rising. For me personally, it feels closer to 17% plus after paying $5.00 a gal for gas & buying groceries with stagflation thrown into the mix for good measure.
Respectfully,
Bill… :~)
There should be Eleven. NMP Biden’s oil production blockade, shutdown, opened the door for oil dependence from other oil producing countries, world wide, specifically Russian oil. Putin immediately use this gift of international leverage to try to sway world opinion as he moved on the Ukraine. Putin’s war on the Ukraine would not have taken place if the United States was still producing and supplying oil. This war should really be called Biden’s War! No, Biden didn’t pull the trigger, but he did set up the target. Its hard to imagine that any democrates still beleive Biden is doing an acceptable job. Ignorance is dangerous, not bliss!
Biden and company are not just tanking our economy, they are destroying our country
Joe Biden’s mental instability and inability to do anything good is on full display by the American people whom he loathes.
Lots of commenters say it’s due to incompetence. While that certainly is true, there’s more to it. All of the Cabinet appointments were based on “checking the right boxes” on the social equity questionnaire and not on merit. Also, and most importantly, swearing allegiance to the Progressive-Socialist agenda. That agenda is what’s driving the deliberate destruction of our country now.
The solution is to pull the offensive weed out by the roots. Every last Progressive-Socialist in our govt. must be removed. That goes their RINO collutionists, too. In a practical sense, that won’t happen. When 39%(according to polls) think the Biden admin. is doing a great job, we are in deep doo-doo.
The problems are well documented. The solution is clear. However, millions of Americans choose to be duped by the Socialists (I mean the Democrats), and they believe what the main stream propagandists tell them. I love this country. I do not vote for Socialists. But, I fear that they have done irreversible damage. Even the Republican Party produces many RINO’s who side with the Democrats. I believe we are on the cusp of God’s judgment. He may yet show mercy, but I believe we are in for a lot of pain in the meantime.
As the economic crisis and government ineptitude continues to grow…. do you think elections have consequences???? The last POTUS election was rigged and has resulted in the economic and social welfare of this Nation is on the route to calamity. We need term limits on Congresspersons and high Exec Branch Department heads. We need a Balanced Budget Amendment consequences to apply to the politicos when they fail. And we need to fix the voting system to make it rigging proof. Otherwise, things will not get better.
LGBTQ is moral failure of our society and against God. It better stands for Let’s Get Biden To Quit. Let’s use LGBTQ acronym is a good and positive way. All this Queerness and Wokeness needs to end.
He needs to be stopped. This is communistic. Why this idiot , like so many get elected, live off of us and try to dictate to us. He is a danger to our nation and the tree world. He is not a king or monarch to destroy what is not his. Open the economy and our energy. Forget him. Have a new presidential election because of what is transpired in his term. ???? hello let’s put our nation back together. It is our s. The kaws we have are good . He is a detriment to us all.
It is time we do something about our failed electoral system. Everybody knows it’s a complete and utter failure. Democrats have destroyed it.
The actions of Biden look exactly like Obama’s agenda to weaken the US and bring it down as low as he could!
Tank this little B*tch in the White House
My question is why is it that the Biden administration getting away with this mess , Everyone in their tight minds no that they cheated on the polls and is destroying America from the inside out , we shouldn’t have to wait until November to vote , when something like this takes place. The American people have the right to speak up and say enough with this junk.
2000 miles
Article V of the U.S. Constitution gives states the power to call a Convention of States to propose amendments. It takes 34 states to call the convention and 38 to ratify any amendments that are proposed. Our convention would only allow the states to discuss amendments that, “limit the power and jurisdiction of the federal government, impose fiscal restraints, and place term limits on federal officials.”We have 19 states that passed the resolution to call a Convention of States. Is your state one of the 19 states that passed the resolution? Help us get the 15 mores states to pass a resolution to call a convention estates.
There are many good ideas in response to this article. What we need to do is look forward to the plan we are going to be forced to carry out if the mid-terms are hijacked like the presidential election was. We can not sit by and let the democrats continue to run this country into the ground. I can’t see that much has been done to cure the voting machines, the mules that stuffed the ballot boxes, the nursing home ballots that were confiscated and voted for the democrats. Need I go on? Insanity we have all heard is doing the same thing over and over and expecting different results. Our country is being robbed out from under us in broad daylight, and we are doing nothing about it but complaining. The democrats figured out a long time ago that when you have an inferior product you have to go to extremes to peddle it. This means lying, cheating, stealing, Godlessness, and what ever else it takes to win. They are very good at what they do, what they do is cheating at elections, as we can all see, they aren’t good at running the finest country that has ever been on the face of this earth. It is so sad to see what has happened in the last 18 months to our country. I feel terrible for anyone in uniform for this country right now, the people that get up and go to work every day, pay their taxes, buy Biden’s $6. gas, watch our border being crossed against U.S. law. Biden told the car companies to build electric cars and he would make Americans buy them. No one has money to buy electric cars that they can’t charge and that won’t get them to work. So the auto companies are going to go broke, just like the home builders are going to go broke, the truckers are going to go broke, and we are all going to starve to death. No one can stay in business in this green economy. We continue to let a man run our country that clearly has dementia, we have V.P. that has less sense than Joe. The democrats have just come to terms with the fact that Joe can’t serve a second term. Could we please put a common sense president back in our white house. We have at least two in Florida that could do the job standing on their heads.