Joe Biden, Democrats celebrate while markets drop

If anyone has worse political instincts than Joe Biden, I haven't met that person. Biden attended a South Lawn celebration for the Inflation Reduction Act on a day when the August CPI report came in hotter than expected at 8.3% year-over-year. That caused the stock market to drop like the Hindenburg. At the end of the day, the DJI dropped 1276 points. The NASDAQ dropped 632 points, which represents a 5% drop of the NASDAQ.

According to this Reuters report, "Appearing with congressional allies and iconic singer-songwriter James Taylor, Biden held a White House event Tuesday to celebrate the Inflation Reduction Act. The bill is the most ambitious attempt by Biden and congressional Democrats to tackle the runaway cost of living before the midterm elections. But critics seized on data showing another month of unusually high inflation that caused stocks to tank."

Yesterday was the 4-week 'anniversary' of Biden signing the bill into law. Initially, the bill was hailed as having $350,000,000,000 worth of deficit reduction. Penn-Wharton, the CBO and the Committee for a Responsible Federal Budget disagree.

In his daily opening riff, Larry Kudlow said "The Atlanta Fed's wage tracker is up 6.7%, but real wages had their 17th-straight negative month. In other words, middle-class working folks are getting clobbered, absolutely clobbered. They're working more but buying less." Meanwhile, while Biden celebrated another terrible CPI report, CNN cut away from the speech:

While Biden bragged about his accomplishments, the stock market ticker showed the Dow down 1,217 points. If the Ticker had a name, it might've been titled 'Biden meets reality.' Kudlow continued, saying this:
Meanwhile, the stock market has fallen nearly 1,300 points. The 10-year treasury rate has jumped over 3.4% and the 30-year fixed mortgage rate stands at 6.5%. Those are a full percentage point above where they were a month ago. Those are the facts. What does this all mean?

The Federal Reserve will be much more aggressive in hiking their target rate and draining excess cash in the economy. They ought to raise the Fed funds rate a full percentage point next week and another percentage point in November and then a third percentage point in December in order to stop the inflation tide. This is a painful wage-price spiral. We haven't seen one of these for four decades.

What this likely means is that families will continue hurting until we get a new (Republican) president working with the Cavalry, which we hope is elected this November.

Comments

Post a Comment

Popular posts from this blog

Tim Walz's Confederate Flag Fiasco

Image
After Minnesota's Democrats shoved the most controversial progressive legislation down Minnesotans' throats, gossip started popping up about Gov. Walz being interested in running for president . That's died off but Gov. Walz is still making headlines, this time for all the wrong reasons. First, Gov. Walz isn't the brightest bulb in the chandelier. Still, Gov. Walz is fighting against Minnesota's history. This Alpha News article quotes David Hann, the chairman of Minnesota's Republican Party, as saying " The flag the DFL has eliminated was a version of the historic flag our regiments fought under during the Civil War. Minnesota was the first state to offer troops to the Union cause in 1861 , beginning a long tradition of leading the nation in confronting injustice. The DFL quest to erase our history is repugnant and should be rejected." Gov. Walz, though, sees things differently. He's quoted as saying "Minnesota is a diverse state, it continue...
Read more

What is Kamala Harris afraid of?

Image
Apparently, Kamala Harris suddenly loves debating. Let me rephrase that. Harris loves debating as long as the moderators are partisan hacks. She wants nothing to do with a debate moderated by Fox's Bret Baier and Martha MacCallum. She's afraid of Bret and Martha because a) they'll either fact-check both her and Trump or they won't fact-check either of them and b) Bret and Martha aren't afraid of asking follow-up questions. To a candidate whose answers are scripted and who isn't quick on her feet, the last thing you want is a follow-up question. Kamala fears follow-up questions like vampires hate wooden stakes, sunlight and holy water. Why has Kamala Harris avoided Fox News like the plague? The moderators/propagandists fact-checked Donald Trump aggressively but didn't fact-check Harris . Why didn't David Muir and Linsey Davis fact-check both candidates equally? Is it because Harris doesn't like fair fights? Perhaps she's just afraid of getting exp...
Read more

Why is Joe Biden letting Hamas off the hook?

Image
It isn't disputable whether Joe Biden's administration is letting Hamas off the hook. That issue was settled months ago, when a spineless Joe Biden caved to activists interested in saving Hamas and thwarting the Israelis' attempt to defend themselves. Gerard Baker's op-ed highlights what's at stake for the U.S. if the terrorists are permitted to survive. In his op-ed, Baker wrote "If, under the pressure of internal Democratic politics and global public opinion, the Biden administration forces a 'cease-fire' that leaves our closest ally in the region short of victory over an enemy that seeks to destroy it, sooner or later we shall all pay the price." It's time to revisit George W. Bush's speech to a joint session of Congress on Sept. 20, 2001. It's required that we remind ourselves of one of its most important paragraphs. In talking about who committed the atrocities of 9/11, President Bush identified al-Qa'ida as "a collectio...
Read more