Let’s stop pretending that the increase in energy costs is an unintended consequence of either Biden’s policies or global developments.
It is, in fact, the goal of his policies.
Throughout Europe, energy prices are artificially inflated because of green taxes designed to drive up the price of fossil fuels to discourage driving.
Same goal here.
But how does Biden plan to handle the expected 30% increase in natural gas prices this winter, according to the Department of Energy?
Heat less? Bring back, Jimmy Carter wearing a sweater in his house and in national addresses? Is the sweater Biden’s new symbol, in addition to his omnipresent mask?
The drastic overall inflation numbers this week — 6.2% in Consumer Price Index and 8.5% in wholesale index — are increasingly proving to Biden something he appears not to know: That when you put your foot on the gas pedal, the car goes faster.
Biden’s continued huge spending really shows that this correlation has escaped him.
Or is his real approach different? Perhaps Biden is trying to solve inflation by out-running it — by having incomes out-race prices? That’s a no-win proposition.
With stagflation, the price increases themselves constrain economic growth by squeezing the supply chain so that incomes can never keep pace with prices. Out racing inflation becomes like a dog chasing its tail.
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