"Can Donald Trump do something about this inflation? He can stem the growth. But short of deflation (which is seldom helpful), what has happened has happened. In other words, the item which once cost you $80, will now cost you over $100 from now on."
Hey! Inflation is getting much better! Time to crack the bubbly! How do we know all of this? We are being told (or gaslighted) by our current administration. Actually, a little inflation is a "good thing". Really? In which world is that true? It is helpful from time to time, to look at the reality of our situation. So - let's go!
Item 1 - Why is it, that more people are not "feeling the love" of this economy? That many things are crazy expensive these days. I mean, the current inflation rate (annualized) is ONLY 3.4%. But here is the rub. Unless someone had just crawled out from under a rock, they know things are 20% higher than 3 1/2 years ago. That means what cost $100 today, cost $80 3 1/2 years ago. That is a huge jump! Then next year (with a 3.4% inflation rate), our very expensive $100 item will cost $103.40.
Item 2 - As some of us know, there is a hook and ladder relationship between inflation and interest rates. Last week, there was an interesting exchange with a young person who was trying to buy his first house. Not a big and fancy house, just a starter home. BUT - without the Fed lowering the interest rates so the mortgage rates would become more affordable, that dream of buying a new house has become a nightmare. Why won't the Fed just lower the rates? Inflation is still over 2%. Why is inflation over 2%? Ask Joe (or Foe I have been advised to call him) Biden. He is the one who juiced up the spending machine.
BTW - as a postscript to this item, a second term of Joe Biden would mean the 3% (or more) inflation would continue for another four years. And interest cuts would be few and far between. Just saying.
Item 3 - Guess who our Biden inflation is hurting the most? Seniors. Seniors on fixed income. They are really stuck. Sure, there has been some COLA help on their Social Security. And - maybe some had pensions which also had some COLA benefits. But many seniors only have Social Security, and that is it. Here is the real tragedy - about half of all seniors are living paycheck to paycheck under this crushing inflation. And to make matters worse, many only have one month's living expenses in the bank. This is a terrible way to retire.
And yet, with all this misery, we are still being gaslighted and lied to. "Relax - things are fine. You are doing well." The only problem is this - we are not stupid. We are not doing well. We have been skinned alive by this cruel tax called inflation.
Can Donald Trump do something about this inflation? He can stem the growth. But short of deflation (which is seldom helpful), what has happened has happened. In other words, the item which once cost you $80, will now cost you over $100 from now on. Fast food has been replaced with "not as fast and very expensive" food. Joe (Foe) Biden has put his tattoo on our finances. Once again, all Trump can do is stem the tide. Take it back to under 2% so the Fed can reduce the interest rates.
Maybe for lunch I will go to McDonald's and have a $5 Big Mac. Or is that only in my dreams? In reality, it will be a $8 Big Mac with $2 left from my ten-dollar bill to buy a quart or so of gas to get home on.
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