Biden’s Bad Policies Spark Panic Around The Globe – Nothing Can Stop This Now

The Organization for Economic Cooperation and Development (OECD) revealed that rapidly rising prices are hindering the global economic recovery form the COVID-19 lockdown-induced recession.

The group’s most recent economic outlook found that the economic rebound is drastically “losing momentum.” This is in part due to supply chain bottlenecks, lockdowns, and scarcity of certain materials – which have helped to drive a higher inflation rate.

In addition to the obvious cost burdens stemming from manufacturing supply bottlenecks and food price increases, imbalances in the energy market are a key factor driving up inflation in all economies.

“Gas prices have risen sharply, notably in Europe, and risks are high, with storage levels around 28% lower than they would normally be at this time of the year. Rising food and energy costs are inevitably hitting low-income households the hardest,” the economic outlook reported.

The report continues, “Inflationary pressures are proving stronger and more persistent than expected a few months ago. Consumer price inflation in the OECD is now projected to start fading in 2022, before moderating as key bottlenecks ease, capacity expands, more people return to the labour force and demand rebalances. The Outlook underlines the risk that continued supply disruptions, perhaps associated with further waves of COVID-19 infections, may result in longer and higher inflationary pressure.”

“The strong rebound we have seen is now easing and supply bottlenecks, rising inflation, and the continuing impact of the pandemic are clouding the horizon,” explained OECD Secretary-General Mathias Cormann, also noting the risks associated with the Omicron variant which the media is sensationalizing despite reports that its symptoms have proven to be remarkably mild.

The OECD also increased its 2022 inflation projections for the United States from 3.1% to 4.4%. In 2023, it expects inflation to reach 2.5%.

Last month, the Personal Consumption Expenditures Price Index, the Federal Reserve’s primary inflation metric, reached 4.1% — its highest level since the early 1990s.

Congress, meanwhile, is salivating at the potential opportunity to spend more money and worsen inflation. Congress may soon approve President Biden’s $1.75 trillion Build Back Better Act. The far-left legislation would expand various social programs, including universal preschool, childcare subsidies, and climate change initiatives.

Democrats, meanwhile, have been pushing a falsehood that Biden’s pricey bill would have a “negligible impact on inflation.”

Lawrence Summers — who served as Treasury Secretary under the Clinton administration and National Economic Council director under the Obama administration – is the one being used to push that lie.

“First, let’s not compound errors that have already been made with far too much fiscal stimulus and overly easy monetary policy by rejecting Build Back Better. The legislation would spend less over 10 years than was spent on stimulus in 2021,” Summers wrote in The Washington Post.

“Because that spending is offset by revenue increases and because it includes measures such as child care that will increase the economy’s capacity, Build Back Better will have only a negligible impact on inflation. It will of course be imperative to ensure that various temporary measures, such as the child tax credit, will not be extended without new revenues to pay for them.”

It remains entirely possible that Congress will pass the bill at $1.75 trillion just to make it seem somewhat more palatable, and then choose to extend those temporary measures Summers referenced. If that happens, the total cost of the bill would rise to a devastating $4.9 trillion.

Author: Jeff Jigor