Ron Klain says Biden's got inflation licked so all's hunky dory
Just as Joe Biden gets ready to declare his plan to run for reelection, out come the cuckoos from Clock Biden, telling us there's nothing to see anymore on inflation. It's all gone, so put those coupons and calculators at the supermarket away.
That's what we are effectively getting from White House Chief of Staff Ron Klain, who, after assuring us inflation was 'transitory' now assures us inflation is all done and over with.
Alan Blinder, Jan.5, @wsj (left): Inflation for the last 5 months is approx. 2.5%, but the media keeps showing the year-over-year rate— David Dayen (@ddayen) January 9, 2023
James Boyce, Jan.4, @theprospect (right): Inflation for the last 5 months is approx. 2.5%, but the media keeps running the year-over-year rate pic.twitter.com/DrZRwonQxr
Now, what he's referring to is a January 5 Wall Street Journal op-ed by Democrat political fixture Alan Blinder, who's a professor of economics at Princeton these days. Blinder avers that the Fed's successive rate hikes have brought the rate of increases down, and so, the month-on-month inflation rate is indeed 2.5%. What's pesky, he notes, is that everyone is looking at the annual inflation rate, which currently stands at 7.1%.
According to Matt Margolis, writing at PJMedia:
“When inflation was at 40-year highs, there was no shortage of coverage. But now,” he tweeted, pointing to a report that inflation in the second half of 2022 decreased to 2% after climbing to a rate above 7%.
According to data released by the U.S. Labor Department on Dec. 13, the annual inflation rate for the 12 months ending in November 2022 was 7.1%, down from 7.7% before.
The annual inflation rate was 7.0% in 2021 and 1.4% in 2020. The highest annual inflation rate under President Trump was 2.3%
As Margolis's colleague at PJMedia, Stephen Kruizer, noted:
We’re supposed to be dancing in the streets because there has been a slight drop from precipitous highs. Why can’t we appreciate this bountiful relief?
Klain’s spin is akin to Keith Richards celebrating drying out because he only drank one bottle of Jack Daniels instead of two the previous night.
The real problem here is that we, the people, pay our elected officials and bureaucrats in Washington far too much money. Even the ones who don’t arrive with a lot of personal assets or wealth get comfy pretty quickly.
Ron Klain has probably never made a household budget and he’s most certainly not living paycheck to paycheck like many Americans. Joe Biden hasn’t been to a grocery store for anything other than an election photo op in at least 50 years.
After that, the Kruizmeister goes into what inflation actually is at the consumer level:
The economic policies that drive this inflation have been created by people who don’t have to worry about money. It was politically expedient to give away “free” money, long-term consequences be damned. Ron Klain can try to comfort me with a slight shift in statistics, but that doesn’t help with the fact that the eggs I was paying $3.99 a dozen for just a couple of months ago are $6.29 today. The organic and cage-free eggs are over eight and ten dollars a dozen, respectively.
All kinds of costs are up, and not just in the price of food. Home heating oil is up, gas and electric bills are skyrocketing, doubling in California, and my and other people's health care costs went up 14% this year, some more, some less. Nobody has lowered that amount to 2.5% for us. How many such workers have seen their wages rise 14% to pay for this Bidenflation health insurance hike that will extend through the year, just so they can get even? Not too many if statistics are accurate.
Crowing about inflation at 2.5% in this economy is laughable. That 2.5% is a reference to additional price hikes, not the ones we are already paying for. We still keep paying for those. And up it stays for the foreseeable future, just like the inflation-bathed price of organic eggs, and it probably won't go down 14% even if Powell gets inflation to zero on a monthly basis.
Inflation in fact is solely a monetary phenomenon. It's brought on by the Federal Reserve printing too much money for the economy it services. When that happens, prices have to go up to absorb all that floating cash liquidity to ensure that the payments made have value.
That's what makes Klain's crowing utter gaslighting, fueled by considerations for Joe's re-election prospects. It's likely the voters won't be fooled by all this talk about inflation being a yesterday-story. Voters know what the prices are and what they are paying for them. so all these efforts to claim nothing is happening are actually bound to make them madder. That's not a good strategy for Joe, but it is his re-election campaign we are talking about. Who needs results when Joe's team can gaslight?
Image: Twitter screen shot