Thursday, June 20, 2024

Joe Biden is Driving Us off an Economic Cliff

Professional athletes know they can gain a significant short-term edge by taking performance-enhancing drugs, but they also know that at some point, there will be a heavy price to pay. Anything that gets juiced up to achieve better results will inevitably experience a proportional crash.

Which brings us to the U.S. economy.

As has been pointed out repeatedly, Joe Biden is an unprincipled chameleon, shape shifting to appease enough voters to ensure his next election victory. The most obvious example is Biden’s shift from a segregationist to a self-loathing white apologist who believes the plight of modern African-Americans hasn’t improved since the 1960s.

Remember, for Joe, it’s whatever it takes.

Conjuring up an Economic Disaster

It’s precisely because of this insatiable thirst for power that Biden and his handlers cooked up a scheme that would appease their vocal, woke leftist base while keeping average Americans in the dark about the coming economic calamity. The radical left has made it clear they are willing to let the American people endure the hardship and inconvenience of energy chaos just in case humans might be causing climate change.

By instituting regressive energy policies, including canceling exploratory leases on federal land, canceling pipeline projects, intimidating banks so they won’t provide loans to the fossil fuel industry, and appointing anti-fossil fuel commissioners to FERC, Biden has made sure the price of energy in America will skyrocket, and the supply will continue to shrink.

A lot of this stuff is self-fulfilling. As the fossil fuel industry anticipates more roadblocks and diminishing returns, they choose to put their capital elsewhere, which serves to drive up prices even more. Want to know how much Slow Joe cares about your future? Just look at the Strategic Petroleum Reserve. He’s continually drawn down reserves until we’ve reached levels not seen since 1983. Why? He needs to artificially suppress the price of oil until after the election. He’s sacrificed our security for his own personal gain. So, what do you think he’ll do once he’s reelected and never has to worry about running again?

To mitigate the effects of the left’s disastrous environmental and economic programs, clever Democrats decided they would simply juice the economy with a bunch of free money giveaways and massive government spending. During the pandemic, Biden handed out a total of $6 trillion in the form of stimulus, PPE loans, unemployment benefits, credits, grants and forgiveness programs. This does not include the economic benefit of free rent and suspension of student loan payments.

On the spending side, Democrat cronies in Congress pushed through two major bills with an extraordinary price tag. The Infrastructure Investment and Jobs Act cost $1.2 trillion, but less than half was actually targeted for roads and bridges. Most of the money went for pork projects and climate change-related schemes like charging stations for EVs and mass transit.

The other major piece of legislation was the Inflation Reduction Act. The name itself reflects the ultimate irony of a bill that did the exact opposite. This $740 billion albatross gave healthcare to illegal aliens, raised taxes, invested in technology to reduce carbon emissions and a variety of other woke climate change initiatives. When coupled with an executive order that forgave $144 billion in student loan debt, Biden injected another $2 trillion into an economy already over saturated with money.

Inflation Makes a Comeback

Certainly, one would assume there are economists who could have foreshadowed the impact of such massive spending. $8 trillion in new money introduced over such a short period ensured the party was on, and for a couple years, Americans partied like it was 1999, well, except for that Covid thing.

However, like all really wild parties, eventually, the hangover phase starts, and this one is going to be a whopper. Inflation roared back to levels not seen since the bad-old-days of Jimmy Carter, peaking at 9% and averaging 5.7% through Biden’s term. It’s the third worst performance by a president since they started tracking inflation numbers.

Even worse, the national debt, which was already bulging at the seams, exploded. In fact, since 2021, Biden has added a staggering $7.5 trillion to the debt, which currently stands at $34 trillion.

But that’s not the worst of it. To battle the effects of inflation, the Federal Reserve raised interest rates 11 times, starting in May 2022. The current Federal Funds rate stands at 5.5%, and while the Fed was successful in capping inflation, the CPI has remained stubbornly high, currently standing at 3.4%.

Slow Joe is Driving us off an Economic Cliff

With Biden’s reckless spending and interest rates remaining high, the impact on the deficit has been devastating. In fact, some economists are warning that we have entered a death spiral of ever larger deficits, resulting in higher interest payments, which then adds to the deficit and accelerates the cycle.

The latest horrible economic news is that interest on the debt in 2024 has now surpassed defense, Medicare and Medicaid in size, and it is now the second largest budget expense. Yet, what isn’t discussed is the inflationary impact a trillion dollars in interest has on inflation. It is insidious as it continually compounds. You want to know where it ends if it isn’t addressed soon? Google the Greece sovereign debt crisis.

Perhaps worse, the 5% interest paid on CDs is also inflationary, as grandma’s million-dollar retirement account is now generating $50k a year, where under Trump and previous presidents, she was lucky if she made a grand. That’s a lot of gifts for the grand kids, expensive cruises and pulls on the one-armed bandit at the casino.

Remember at the beginning of the article where we determined Slow Joe is a shape shifting changeling? Well, he only has one more election to win, and he’ll do just about anything to make that happen. Another $60 billion dumped into the proxy war sinkhole to ensure Ukraine doesn’t lose until after the election? No problem. Another $7.7 billion in student loan forgiveness to buy votes? No problem.

Ordinary Americans better quickly figure out what’s going on here before it’s too late because Joe Biden doesn’t care, and his handlers are cheering on America’s demise.

Sometimes, when I sit back and crack open a Heineken, I try to remember how we let this shit happen…