The Biden administration and the Federal Reserve continue their deafening silence about the drastic escalation of the rate of inflation in this country. It’s getting worse by the day. In this short interview, Peter Schiff tells Tucker Carlson what’s causing it. Here are the core quotes (bold, underlined text is my emphasis):
If you look at how much the cost of living went up, measured by the CPI in the first four months of this year, it’s 2%. So, if you triple that to annualized it, we have consumer prices rising at 6% annually. But if you look at the monthly numbers, every month it accelerates. So, if you extrapolate the trend of the first four months of this year for the entire year, you’re going to get a 20% increase in consumer prices in 2021.
. . .
The real problem is the surplus of money. Whenever you print a lot of money, it’s always a goods shortage because the Federal Reserve can print all the money they want, but they don’t print products to buy with the money. So, we have all this money being printed. We’re not producing a lot. People are sitting at home cashing unemployment checks. This is a tax. It’s an inflation tax, a Biden tax, whatever you want to call it. But when Joe Biden says ‘don’t worry! Only people that make over $400,000 a year are going to have to pay higher taxes to fund all these programs,’ he’s lying. Because every American is going to pay the inflation tax. And it’s going to hit the middle class and the poor the hardest.
. . .
Remember early on, Ben Bernanke said, ‘ Don’t worry about subprime. It’s contained.’ Well, now they’re saying don’t worry about inflation. It’s transitory. Inflation is as transitory now as the subprime market was contained. And this inflation crisis is not only going to be worse than the financial crisis, it’s going to be worse than the pandemic. Because the government’s cure is what’s going to kill the economy, not the disease itself.
Here’s the interview. It’s short enough that it won’t waste your time, but it puts in a nutshell what we’re seeing all around us. It’s important viewing.
That’s the way it is, clearly and concisely put. My main concern is the acceleration in inflation rates identified by Mr. Schiff. If you extrapolate from trends over the past few months, I suspect we may be looking at more than 20% annual inflation by the end of this year – perhaps 25% to 30%. We’re already at an effective 14.7%, after all, as we discussed last week. There’s no reason why that couldn’t double in six months or so, because the core problem is getting worse by the week.
I have no idea why the Biden administration is so hell-bent on destroying the US economy, but if they aren’t stopped, that’s going to be the end result of their shenanigans. I suppose it fits the wider Cloward-Piven strategy; trash the economy to force more and more people onto the welfare rolls, which would create such an intolerable fiscal burden that it would destroy the capitalist foundation of US society. I certainly can’t think of any other explanation.
Peter
I'd been thinking about buying a kennel from the local non box hardware store. In January it was $199. In March it was $239. Last week the price was missing. Yesterday it was back as $269. The small business owners are feeling the pinch now and are raising prices accordingly.
@Skyler: Think about it. From $199 to $269 in 5 months… that's a price increase of 35%. Extrapolate from that to a full year, in December, and you're talking an annualized inflation rate of 84% for that kennel. Please God, prices for the rest of our needs won't rise that fast!
Good thing I already have cases of wine and rum stocked away.
It is definitely a tactic to implement a Cloward-Piven collapse of the economy and UBI. The hyper extended unemployment, the massive deficit spending when the pandemic was all but over, the open border flooding us with cheap workers: all tactics to destroy the economy and create a massive, dependent underclass who will reliably vote Democrat. They will feel they have no choice. LBJ would be proud. Combine this with a highly effective election fraud machine in every blue city (I live in Arizona where the Maricopa officials are fighting tooth and nail to stop the audit). The red/blue split is coming, and it won't be pretty. Probably by the end of this year. I don't think it will be peaceful. The GOP simply doesn't recognize that they are in a gun fight with a gang, armed with a spoon.
There was a big deal about the Bank of America saying we're headed for "transitory hyperinflation" a couple of weeks ago.
The unstated part of that is that people will think transitory means the prices are going to come down after the hyperinflationary period. I really doubt that. If the prices double or triple, does anyone really think they come back down?
"Inflation is always and forever a monetary policy issue" Hyperinflation isn't really just "inflation on steroids," it's a collapse of the currency.
Remember the line about The Great Reset, that "you'll own nothing and you'll be happy?" That's the setup. Someone will own the things in your life and you'll pay rent on them forever.
When you hear the govt talking about bad things being "transitory" keep in mind this is the same govt that has lied to us for years about the inflation and unemployment numbers.
Covid lockdown was 'transitory' too.
AFAIK, there is no shortage of ice nor cows in the U.S.
A Thrifty (Rite-Aid) single scoop ice cream cone was 5¢ in the 1980s. 10¢ for doubles, and 15¢ for triples.
They go for $1.99 now, for a single scoop.
The minimum wage – even at Rite Aid – would have to be $120/hr now to keep up with that rate of inflation. Businesses are kicking at $15/hr.
Just more evidentiary proof in demonstrating that your dollar is now worth 2.5¢.
And these are the good old days.