Biden Inherited 9% Inflation Rate?

[Mac1958]

Not true. 2021 inflation volume was first and foremost caused by Covid distortions. Thats the foundational cause.

No, a large part of the inflation problem was the $11 trillion in QE stimulus poured into the economy since the Meltdown. We all knew it was inflationary at the time.

The Meltdown happened because Greenspan absolutely refused to regulate the derivatives that damn near killed us, and the banks ran with it.

The derivatives existed because Clinton repealed Glass Steagall, opening the door for the banks to create and market the high-fee derivatives that damn near killed us.

Then there was essentially no choice but to pour QE into it, and we all knew it was inflationary. But it had to be done.

So the real roots of this are deregulation, the Wild West mentality that spread the derivatives, and the necessary QE. The economy could absorb the QE until supply chains crashed, and the shit hit the fan. Looking back, none of this is a surprise.

 

[AntonToo]

No, a large part of the problem was the $11 trillion in stimulus poured into the economy since the Meltdown. We all knew it was inflationary at the time.

Except it wasn't.

Inflation was moderate until Covid induced global inflation disrupted supply and demand balance in a huge way.

 

[Mac1958]

Except it wasn't.

Inflation was moderate untill Covid induced global inflation where supply abruptly stopped meeting demand.

As I said, the economy was able to absorb the stimulus because there was still so much slack. But the collapse of the supply chains took care of that.

 

[AntonToo]

As I said, the economy was able to absorb the stimulus because there was still so much slack. But the collapse of the supply chains took care of that.

Collapse of the supply chains and a change in what people were spending money on was the core problem.

That would have been a major problem no matter what was going on in prior years.

The effect you are talking about may very well still be slacking and may comeback as a problem in it's own later on.

 

[Rambunctious]

The Biden Bull Shit is getting deep.... better slip on the over boots....

 

[Mac1958]

Collapse of the supply chains and a change in what people were spending money on was the core problem. That would have been a major problem no matter what was going on in prior years.

We disagree. The economy was flooded with QE cash. Then, when the inflation kicked in, the Fed was about 10 months too late in reacting.

I went over this a zillion times with my advisory clients.

 

[AntonToo]

We disagree. The economy was flooded with QE cash. Then, when the inflation kicked in

What does it have to do with the disruption in the supply chains?

Take oil - when everything went on pause oil prices collapsed and caused great pain in the sector for companies that in turn caused drastica contraction of oil production. When economy started re-opening they couldn't bring production back up fast enough to keep up with the demand, especially with Russian invasion factored in.

Is that a QE issue? Of course not.

 

[Mac1958]

What does it have to do with disruption in the supply chains?

The pent-up demand. That was half the reason the supply chains broke. The other half was that so many people weren't working to keep them operating properly, so they had decayed and evidently nobody fucking noticed it. People just started SPENDING.

My most successful business clients during the lockdowns were home improvement companies. They made a TON of money, since so many homeowners were sitting around the house staring at the walls. Once people could get back out, they started buying the big ticket items, traveling, etc., and those chains collapsed like dominoes.

 

[AntonToo]

The pent-up demand. That was half the reason the supply chains broke. The other half was that so many people weren't working to keep them operating properly, so they had decayed and evidently nobody fucking noticed it.

My most successful business clients during the lockdowns were home improvement companies. They made a TON of money, since so many homeowners were sitting around the house staring at the walls. Once people could get back out, they started buying the big ticket items, traveling, etc., and those chains collapsed like dominoes.

Is it QE fault that people suddenly shifted their spending to home improvement?

NOPE.

It's the sudden pandemic disruption that caused big inflation, not gradual QE volume effects that mostly retained supply and demand in balance.

 

[Mac1958]

Is it QE fault that people shifted their spending to home improvement?

NOPE.

Of course not. As I said, people were bored at home and looking around at the house.

 

[AntonToo]

Of course not. As I said, people were bored at home and looking around at the house.

So again, it's the sudden pandemic disruption that caused sudden inflation, not gradual QE volume effects that mostly retained supply and demand balance.

 

[Mac1958]

So again, it's the sudden pandemic disruption that caused sudden inflation, not gradual QE volume effects that mostly retained supply and demand balance.

We disagree. That's fine with me.

 

[AntonToo]

We disagree. That's fine with me.

What would cause big global inflation increase in 2021-2022 SPECIFCIALLY and lower inflation in 2019, 2023, 2024?

It's the Covid of course, alternate explanations defy the timeline and the facts.

 

[Independent thinker]

It was 1.4% when Biden took office and skyrocketed to 9.1 six months later.

Absolutely nobody should be buying what this guy is spewing. Why make such an assinine statement that is easily fact checked?

Donald Trump's son responds after Biden claims he inherited 9% inflation when he came into office

Donald Trump's son responds after Biden claims he inherited 9% inflation when he came into office

Eric Trump swiped President Biden after the Democrat claimed he inherited 9% inflation when he took office in January 2021. His claim is factually wrong as inflation was 1.4% at the time.

www.foxnews.com

You mean Biden lied? No! Tell me it ain't so.

 

[Winston]

1.9% inflation is a problem? Roflmao, you're really stupid, stupid

Bookmarked. I believe there is a strong possibility that Trump will win the presidency. What is going on in Israel, the War in Ukraine, and the fact that one can never underestimate the intelligence of the American voter, you a gleaming case in point.

If that happens, well you will see inflation come roaring back with vengeance.

Allianz | Trumponomics: the sequel

Whoever wins the White House in November will be confronted with a changing US economy.

www.allianz.com

The above white paper, while predicting increased inflation under a second Trump administration, also indicates that Trump's proposals, from increased tariffs to more tax cuts, would be mitigated by fiscal discipline. Evidently, in Brussels, Allianz is not paying attention to the complete dysfunction of the Republican party today. There will be no mitigation, there will be no fiscal discipline, I when has a Republican president, with a Republican Congress, ever been fiscally disciplined?

 

[Nostra]

Please explain what Biden did or didn't do which caused this inflation?

I will point out this a Global Inflation Problem.

Now what caused Global Inflation?
"Oil price shocks were the main drivers of variation in global inflation with a contribution of over 38 percent, followed by global demand shocks with a contribution of about 28 percent over the past five decades, and much smaller contributions of global supply shocks and interest rate shocks."

What Explains Global Inflation

This paper examines the drivers of fluctuations in global inflation, defined as a common factor across monthly headline consumer price index (CPI) inflation in G7 countries, over the past half-century.

www.worldbank.org

Now who was a the main driver for a cut in Oil Supply?

OPEC and allies' oil production cut is Trump's 'biggest and most complex' deal ever: Dan Yergin

Yergin said there were two main factors driving the turnaround to the deal that just six weeks ago "would not have seemed possible."

www.cnbc.com

Trump says US will cut oil production to secure global deal

President Trump said Friday the U.S. would reduce its oil production to move forward with a tentative deal limiting global output, part of an effort by the administration to address …

thehill.com

Ahh, this is embarrassing...

Now this is where you are going to claim ignorance and then start insulting people in a hope that your ignorance or deceit hasn't been shown up...

He is spending over $7 TRILLION per year.

Next stupid question?

 

[HikerGuy83]

Except it wasn't.

Inflation was moderate until Covid induced global inflation disrupted supply and demand balance in a huge way.

Unfortunately, nobody cares.

All they know (and what we are going to wrap around his neck) is that it happened on his watch.

Both sides do it all the time.....so spare me any response.

 

[HikerGuy83]

He is spending over $7 TRILLION per year.

Next stupid question?

And only taking in about 5 trillion.

The interest on our debt is getting way out of hand.

 

[Nostra]

Absolutely Biden inherited 9%, because thats what it would have been no matter who was in the WH in 2021.

Nothing could have been done, short of crashing of the economy, to stop that.

Anyone with half a brain (not you) understands that.

No stupid, Tater inherited 1.6% inflation.

 

[Winston]

He is spending over $7 TRILLION per year.

Next stupid question?

But yet he has decreased the deficit by ONE TRILLION DOLLARS. I mean come on, you guys .are always belly aching about the deficit, how the FED is just printing dollars. Well, they were printing about a trillion more dollars a year under Trump than Biden.