No Communist Was Ever As Dedicated to Economic Suicide as the Current Class of Idiots who Rule the US

Inflation is about the difference between money earned and money spent. If the government is printing loads of money (which is not earned), the inflation will grow. If the government wants to reduce the inflation, it needs to cut government spending, raise interest rates, reduce regulation, and lowering taxes. Government can and should facilitate increases in productivity by reducing its interference in every private transaction.

But ... more Americans get a check from the government than pay taxes. The labor participation rate is dangerously low. There just aren’t enough people pulling their weight to make the things needed to stop up all of this excess money.

The coming reckoning for Biden’s insanely irresponsible monetary policy will dwarf the troubles from all recent recessions and periods of inflation ... combined.

Now the US has a real problem.

To fight inflation, interest rates need to exceed the inflation rate. That means a dollar saved loses purchasing power unless savings interest rates climb from less than 1 percent to something over current inflation (now around 8 percent). One rule of thumb provides that savings interest rates should reach 150 percent of inflation in order to reverse the trend. The theory holds that high interest rates encourage saving cash, thus slowing down the speed at which money chases assets.

But with Biden's policies, raising interest rates will cause a cascade of problems. The higher interest rates will slow the economy and cause unemployment. It will also swallow up tax revenue as the government has to pay interest on its massive debt. But more critically, it will increase the rate of default on home mortgages. Those defaults will make mortgage-backed securities less valuable and more unpredictable. That’s how the 2008 housing market seized up.

The US is in a curve it can't escape from.

What Trump would do to resolve the issue of inflation is reducing regulation, huge cuts in government spending, dramatically lower taxes, facilitating increases in productivity by reducing its interference in every private transaction (and start pumping oil again on a massive scale, buy only American goods and services), increase exports and decrease imports.

But unfortunately, the current president is Joe Biden, and he isn't a leader, who's able to make such thing happening, together with the worst American leaders ever.

Worst American leaders.

And with such leaders, the chickens coming home to roost, and that's what we see at the pump and rising prices and inflation.

The chickens coming home to roost.

And don't expect that Joe Biden and his Democrats will resolve the inflation. He's going to fight any effort to improve a single thing for the Americans.

One thing Biden did, which is special. He and is Democrats managed to bring down America in a year. That's the only accomplishment they actually did.

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