Every month, the inflation numbers are released, and every month, I’m stuck trying to think of some new headline that expresses the escalation of disaster that those numbers represent. The five percent inflation we saw during the summer seems almost quaint now, and while last month’s 6.8 percent was horrific, the Biden administration managed to top themselves.
December’s inflation numbers are out and are sitting at a whopping seven percent year over year, with far higher increases in several areas that are key for middle-class families. That’s the highest number since 1982.
BREAKING: #inflationThe highest rate of growth since 1982 was 7%, which is a 7% increase over the previous year. pic.twitter.com/YowskvZ5r0
— Squawk Box (@SquawkCNBC) January 12, 2022
This is the highest inflation rate in over 39 years. #Bidenflation
Gas: (+49.6% from last year
Bacon: +18.6%
Eggs: +11.1%
Chicken: +10.4%
Fresh fish +10.2%
Shoes: +6%
Dresses: +8%
Cigarettes: +9.6%
Furniture: +13.8%
Used Cars & Trucks: +37.3%
Car & Truck Rentals: +36%— Jacki Kotkiewicz (@jackikotkiewicz) January 12, 2022
The majority of meat products (i.e. Most Americans have increased their consumption of meat products by over 10%. After a small dip in gas prices, the price of gasoline has remained stubbornly high with a nearly 50 percent increase. If you are needing a used car to get to work, you’re going to pay 37 percent more for it than a year ago. These numbers are absolutely insane, and very harmful.
These taxes can also be a rage-inducing to those who feel like they are finally getting ahead, but now see their bank accounts and savings disappear while receiving nothing in return. Inflation is the direct cause of Americans paying more tax. You can’t deduct, and it can’t be avoided.
Worse, there is no easy way out of what the Democrats’ ridiculous spending plans have wrought. Their stimulus checks and debt-busting “relief” spending didn’t create the jobs boom they promised, but they did paint the nation into a corner. All that can be done now is to raise interest rates, which will slow inflation but will also slow investment and crush people’s retirements. Because the White House’s man, who cannot think for himself, is an absolute dolt and has absolutely no options.
Further, instead of staunching the bleeding, Democrats are now proposing even more spending under the guise of the “emergency” posed by the Omicron COVID-19 wave. In the face of crushing inflation, they aren’t willing to do what’s necessary to help normal people. Instead they continue to run full speed ahead, which means you have to pay the hospital bill.
Last but not least, the Biden administration changed inflation calculations. In other words, it’s likely that 7 percent number is watered down, making the comparison to 1982 apples to oranges. That’s how bad things are.
I’m not an investment strategist, but if you’ve got a lot of money sitting in the bank or stock market, you should probably go speak to one. You might consider diversifying and moving some money into assets like real estate, or any other asset. Things are going to worsen over the next 12 months.
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