Reply to U.S. Annual Inflation rose to 6.8% in November

Forum Index » Political Discussion

Reply to "U.S. Annual Inflation rose to 6.8% in November - the highest in 40 years"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous]I dont think Biden or his administration can meaningfully change the inflation trajectory unless its stopping fiscal spending.  Biden seems to have no backbone to tell the progressive wing of his party no and lets Sinema/Manchin take the blame.  All this stuff about jawboning OPEC and vilifying meat packers is all political theatre.

The only think that's going to break this is if the fed raises rates hard ala Volker.  Off course the economy is going to slow with increased unemployment by the midterms and the Democrats are going to get even pounded

[/quote]

Yup, it's simple.  If Biden and the Democrats don't pullback the reins of lax fiscal policy and cutdown on all of these loose left wing progressive policies, the solution will come from Fed hammer and monetary policy.  Interest rates will get hiked by a lot, kicking off a recession and severe economic pullback.  It will also mean the US has to pay a ton more money to service its current debt load.  Kind of hard to keep handing out checks for progressive policies if there is a big recession and all of the sudden the govt has to spend hundreds of billions of dollar more paying down the interest alone on its debt due to interest rate hikes needed to control inflation.  This is a very difficult problem Biden is facing. [/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics