President Joe Biden said today that the U.S. is in a better position than any country to beat the current round of runaway inflation, completely denying that the Ukraine War, and Russian oil embargo, is the primary cause of inflation. “First of all, it’s not inevitable,” Biden said, referring to recession in the U.S. “Secondly, we’re in a stronger position than any nation in the world to overcome this inflation,” Biden said, showing no understanding of how his Ukraine War fuels inflation by cutting 25% of the world’s oil supply from Russia to the U.S. and European Union. Without a major change in the Ukraine war, namely, sending it to the peace table, Biden has no clue how to tame inflation. Fed Chairman Jerome Powell has relied heavily on rate hikes, bumping up the Federal Funds Rate 75 basis points last week. As interest rates rise, the prospects of slowing the economy increases.
Another two or three rate hikes by year’s end practically guarantees that the U.S. slips into recession, where at least two quarters of negative GDP growth confirms recession. Recession comes with a rise to the unemployment rate as employers cope with rising costs by starting to lay off workers. Today’s 3.6% unemployment rates is likely to go to 5% in 2023 and 6% in 2024, according to economic forecasts. Biden’s talks about inflation like some mysterious event that sweeps over the countryside like locusts. When, in fact, Biden’s economic policies, especially funding the Ukraine government and war, increases inflation by spending over $40 billion on a war without any national security significance to the U.S. Biden thinks he can continue spending billions on Ukraine, embargoing Russian oil, and spending taxpayer money like a drunken sailor without consequences to the U.S. economy.
Biden’s failure to see the cause of the current hyperinflation cycle shows he’s more zealous about fighting the Russian Federation than for for the American public. As long as Biden spends billions on Ukraine, there’s nothing left for U.S. taxpayers. Biden acts like he doesn’t know what’s fueling today’s inflated energy prices, after removing Russian oil from the U.S. and Europe. When Biden goes to Riyadh next month to meet with Saudi’s de facto leader Crown Prince Mohammed bin Salaman, he’ll ask the Kingdom to make up for lost Russian oil. Biden’s decision to embargo Russian oil is entirely his own. No one tells Biden he must continue the Ukraine War at all costs, especially to rising fuel and commodity prices. Biden knows, but won’t admit it, that the Ukraine War is the primary cause of today’s 8.6% hyperinflation, leaving ordinary citizens unable to pay their bills.
Steep rate hikes by the Federal Reserve isn’t the answer to deal with hyperinflation in the U.S. Biden says the U.S. is uniquely suited to deal with inflation better than other countries. Yet, despite all the minimal EU or NATO support of the Ukraine War, Biden funds the lion’s share of the Ukraine government and war effort. With the U.S. struggling with fossil fuel shortages, how can Biden possibly say the U.S. is in a better position to mitigate inflation when it’s funding the Ukraine government and war? Economists at Wells Fargo Bank disagree with Biden’s assessment, seeing recession as inevitable at the end 2022 and early 2023. Morgan Stanley chief strategist Mike Wilson said the higher interest could lead to more bad news on Wall Street, eventually adding to recession pressures. Wilson sees more selling off on Wall Street leading to recession.
Without the Ukraine War and the Russian oil embargo, the U.S. would be well-positioned to overcome the hyperinflation and impending recession. As long as Biden continues to fund the Ukraine government and war, energy prices will drive inflation, eventually creating recession. Biden thinks inflation came on the scene like a plague, not seeing that spending billions in Ukraine and boycotting Russian oil is the obvious cause of today’s inflation, forcing the Fed to hike interests rates. Biden want everyone to believe that he didn’t cause today’s inflationary cycle, thinking that his Russian oil boycott has had to effect on the economy. Only yesterday, Biden said there would be sacrifice for American citizens to defend freedom. Biden joins Ukraine’s 44-year-old President Voldymyr Zelensky in telling the world that the Ukraine War is ground zero for defending European democracy.
Too much smoke blowing at the White House and U.S. press prevents the American public from understanding how the U.S. got into its current economic mess. Without any doubt, Biden’s Russian oil embargo causes worldwide shortages and skyrocketing prices. Retailers raise prices to reflect the cost of landing goods for sale, something going up by leaps-and-bounds because of higher energy prices. So if Biden wants to level with the American public, he needs to stop the Ukraine War, tell Zelensky to move the conflict to the peace table and end the Russian oil embargo that drives oil prices into the stratosphere. Without ending the Ukraine War, Biden can expect more hyperinflation due to high energy prices no matter what the Fed does to raise rates. It’s no mystery that boycotting Russian oil fueled today’s hyperinflation, leaving the Fed handcuffed to stop recession.
About the Author
John M. Curtis writes politically neutral commentary analyzing spin in national and global news. He’s editor of OnlineColumnist.com and author of Dodging The Bullet and Operation Charisma.
