Bidenflation Strikes Again

The Biden White House and congressional liberals were hoping for good news in today’s inflation report. They were sorely disappointed, as was the stock market.

The so-called “experts” were predicting that inflation had dipped slightly in August. Instead, it went up slightly – increasing by 0.1%.  Even the steep drop in gas prices wasn’t enough to overcome increases in other prices, like food and shelter.

Looking backwards over the last 12 months, the inflation rate has been a scorching 8.3%. 

While it’s true that gasoline prices are falling, and that’s good news for individual consumers, it’s really bad news from a macro-economic perspective. 

Biden’s high interest rate policy is slowing the economy down. Fears of a recession and demand destruction are largely responsible for the fall in gasoline prices.

Another reason gas prices are falling is because Biden recklessly drained the Strategic Petroleum Reserve to dangerously low levels we have not seen in decades, and at a time of tremendous global instability. 

From the war in Ukraine, the energy crisis in Europe and increasing tensions with communist China, this is precisely the wrong time to be draining our emergency energy reserve. 

By the way, Treasury Secretary Janet Yellen is warning that gasoline prices are about to go back up again. 

Biden’s emptying of the Strategic Petroleum Reserve is supposed to end next month – right before the elections. I think it’s a safe bet that the White House will continue tapping the reserve, which was meant for national emergencies, not political emergencies. 

But what happens after November 8th once the immediate political pressure is over? Every other policy Joe Biden has implemented is choking off supply.