The February inflation number has come in at 7.9%, meaning prices in February 2022 were on average 7.9% higher than in February 2021, a level not seen since 40 years.
Joe Biden and members of his administration were quick to blame the inflation on Russia. This is wrong, here is why:
Russia invaded Ukraine on February 24, 2022, at the very end of the month. Sanctions on Russia had not yet been imposed in February.
Inflation has been hot ever since Biden took office. Inflation came in at 7.9% in February, but was already at 7.5% in January 2022.
The Biden administration appears to want high inflation and the commensurate erosion of wealth. On the one hand, they are increasing demand via deficit spending of Trillions of newly printed dollars, on the other hand they choke off supply with lockdown policies, vaccine mandates, unemployment welfare, mask mandates, and of course the shutting down of the Keystone XL pipeline and widespread restriction on the oil and gas industry.
The latest steep rises in the price of gas were not yet present in February. We can hence expect that the March inflation number will come in even higher. The Federal Reserve is expected to start raising interest rates in March. However, without coordination from politicians, this may result in stagflation, meaning economic stagnation due to high interest rates that discourage investment and growth and also high inflation due to unending deficit spending and supply restrictions by the political leadership, e.g. green new deal.
The ideal policies at this stage would be for the federal government to significantly reduce spending, for the Fed to raise rates slowly but steadily, and for the administration to stop setting the world on fire via idiotic and weak foreign policy. Don't hold your breath on that. Instead, we encourage you to write to your representatives in the House and Senate, and also at the local level, and encourage them to pump the brakes on spending. Vote in the mid-terms to shellac the Biden administration and limit its ability to further damage the country via pork barrel spending, racism, educational terrorism and woke fascism.