Proving that most people have no idea what causes inflation, the majority of Americans in a recent poll said they want the federal government to hand out stimulus checks to combat inflation.
Did you know the Biden administration is still handing out COVID-19 stimulus money?
In fact, there are still billions of dollars in pandemic aid sitting in various federal and state government accounts waiting to be handed out.
This may be the dumbest thing you read today. Not my words, but this CNN article I’m about to tell you about.
Retail sales surged at a higher than expected rate in October, rising 1.7%.
The mainstream reported this as fantastic news signaling a strong economy. American consumers are out there buying lots of stuff. The stock market rallied and gold fell.
But the mainstream narrative isn’t giving you the full picture.
GDP for Q2 came in far below expectation at an annualized rate of 6.5%. But despite being a big miss, 6.5% growth is still pretty solid — until you consider what it took to buy that growth.
As economist Daniele Lacalle pointed out, the Fed and the US government rolled out the biggest fiscal and monetary policy in history. All we got from it was a momentary sugar high.
The US government has pumped trillions of stimulus dollars into the US economy giving us a massive sugar high. It felt good at the moment, but after the initial rush, you always experience a crash.
It looks as if we’re already coming down off the high. May retail sales disappointed, dropping 1.3% after big stimulus-fueled gains in March and April. Meanwhile, over the last two weeks, weekly unemployment claims have jumped back above 400,000.
The economy is booming again – or so we’re told. Trillions in stimulus have juiced consumption and created the illusion of prosperity. But in truth, Americans are simply spending printed money on stuff they didn’t produce. Peter Schiff recently said America’s consumption economy is really a bubble
The problem is, economies can’t run on consumption. A vibrant, healthy economy needs production. Stimulus does nothing to boost production. In fact, it completely warps the production structure
The trade deficit in goods leaped to another record high in March as Americans continue to spend stimulus money printed out of thin air on products they didn’t produce.
The goods trade deficit surged 4.0% last month, hitting an all-time record of $90.6 billion. That tops the previous record of $88 billion set in February.
Joe Biden unveiled details of his $2 trillion-plus infrastructure plan complete with tax hikes. The claim is that this is going to strengthen the economy and create opportunity. Peter broke down the spending plan in his podcast and said it will do the exact opposite. It’s going to weaken the economy and destroy opportunity.
The latest Biden/Democrat stimulus bill is just the beginning. There is more government spending coming down the pike. That means more money printing. But Paul Krugman says not to worry. It didn’t cause a big jump in CPI last time and it won’t this time either. Peter Schiff talked about it in his podcast. He said when Krugman talks – nobody should listen.
