As Biden Speaks, remember the economy is run by the Fed and it is run by inflation
Of course, a career politician will be adept at framing the narrative just right, adding to it, tweaking it and layering on fancy words and concepts in order to veil the true and unbelievably simple fact that the inflation started under a very different presidential administration and continues to this day. The only difference is that the party that won the election gets to take a bow for the broad results that have little or nothing to do with them.
Biden goes on offensive against economic critics, argues rising wages show his agenda is working
Well, his agenda was to push rising employment costs into the economy with the inflation the Fed created out of thin air. So that is true. I am not against raising minimum wages under this vile inflationary system because low income people cannot keep up with the pace of the inflation the Fed has created. Under an inflationary regime, an inflationary (Keynesian) system, you can’t go with the old conservative method of letting each earn his or her way based on merit. At some point – due to inflation – the goalpost has been moved too far away.
Trump was so 2020, and that book is closed for now. What Biden is doing is taking the (funny) munny printed out of thin air by the Federal Reserve, and feeding it into favored areas of the economy, much of it as agenda-driven (some of it radical) pork. Trump was pushing the pork too, but much of that went to the already hefty pigs in corporate board rooms. It’s just a matter of realigning where the pork is going, but in the American system we have now, regardless of party affiliation, it’s all about the pork, baby. “It’s inflation all the way, baby!” (from the late Jonathan Auerbach).
And it is all born of desperation. Take a step back in time with me if you will, to March of 2020. Casino patrons were terrified and puking up stock holdings. The economy was being shut down and in a system that had already been driven to sublime levels of debt under Trump (merely continuing a tradition, regardless of party) all that debt must not be allowed to unwind or else there would be no society left. Nothing other than discord, violence and well, some scary shit that 2020 only hinted at.
There are people who think that the liberals – a global liberal elite cabal – manufactured the Coronavirus…
…to eliminate Trump and resume control over whoever is left after the vaccines depopulate a majority of the world’s human residents. Ha ha ha, but seriously, if it were a creation it was designed to trigger the next inflationary episode because after all, as we documented back in 2019……the yield curve had bottomed, the Trump reflation was starting to decelerate and well, if I were to wear a tin foil hat in the belief that COVID-19 was man made for some reason, that would be my guess. Inflationary operations like the one we’ve been riding for the last year need a trigger because the Fed operates in the shadows and needs to be invited to the party or in this case begged to come in.
For what it’s worth, I don’t think COVID-19 was willfully created, but work with me here. The salient point is that the Fed needs economic fear, decelerating prices and at least a strong whiff of deflation in order to work its inflationary magic.
The Fed is a vampire that sucks the economy’s life blood little by little over decades. But it operates in the dark of night and most effectively when under cover of deflation.
Reference from 2019:
So just as Trump’s bullshit was tuned out for proper market management, so too will be Biden’s. They are politicians, after all. They have favored beneficiaries and customized messages to the people. Trump’s beneficial choices pissed off many. Biden’s are now pissing off many. But it’s all one system with different figureheads placed on top as mouthpieces.
The economy is run by the Fed and it is run by inflation.