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Conservatives Sound Urgent Inflation Alarm

Ever since the COVID-excused spending started conservatives have been explaining how the vast sums of money being printed and spent by the federal government would inevitably

lead to inflation. Those warnings were ignored, and even suggestions that the spending be reduced and targeted were ridiculed or attacked as being cruel.


Now the federal government’s latest inflation report shows prices rose 5% in the last year, the highest inflation we've seen since 2008.


With the inflationary spiral starting to come on with a vengeance the explanations have turned into urgent warnings that inflation is here, and the economic damage of Biden’s spending and other inflation-inducing policies is going to be severe.


Our friend David McIntosh, President of the Club for Growth, released the following statement in response to data on inflation announced by the Labor Department on Thursday:

Joe Biden is simultaneously flooding the economy with federal spending while unnecessarily paying people not to work – a recipe for disaster. At every point, Biden has put the priorities of the radical socialist wing of his party first, and this is why American families are seeing skyrocketing prices and a stalled recovery.

Mr. McIntosh’s analysis is supported by many commentators, such as US News & World Report that noted even though more than 9 million people remain unemployed, companies report difficulty finding workers and have been forced to bid up wages to get applicants. On Tuesday, the government reported employers added 1 million new openings in May, bringing the total of open jobs to a record 9.3 million.


As our friend economist Stephen Moore noted, “There are families [that] get $100,000 of government benefits. If you can get $100,000 of government benefits for not working, it’s going to be hard to get people back on the job.”


On her must-read website conservative economic commentator Trish Regan analyzed a report from Deutsche Bank that reached these important conclusions.


“Despite the shift in priorities, central bankers must still prioritize inflation,” the Deutsche Bank report says. “Indeed, history has shown that the social costs of significantly higher inflation and greatly expanded debt servicing obligations make it hard, if not impossible to reach the social goals that the new US administration (among others) is keen to achieve. We fear that the vulnerable and disadvantaged will be hit first and hardest by mistakes in policy.”


“We are witnessing the most important shift in global macro policy since the Reagan/Volcker axis 40 years ago. Fiscal injections are now ‘off the charts’ at the same time as the Fed’s modus operandi has shifted to tolerate higher inflation. Never before have we seen such coordinated expansionary fiscal and monetary policy. This will continue as output moves above potential. This is why this time is different for inflation,” the report said. “The effects could be devastating, particularly for the most vulnerable in society.”


And inflation, driven by Biden’s policies and spending, is becoming a worldwide problem.


Canada’s Globe and Mail reported China’s May factory gate prices rose at their fastest annual pace in over 12 years due to surging commodity prices, highlighting global inflation pressures at a time when policy-makers are trying to revitalize COVID-hit growth.


Investors are increasingly worried pandemic-driven stimulus measures could supercharge global inflation and force central banks to tighten policy, potentially curbing the recovery.


China’s producer price index (PPI) increased 9.0 per cent, the National Bureau of Statistics (NBS) said on Wednesday, as prices bounced back from last year’s pandemic lows.


The PPI rise in May – the fastest on-year gain for any month since September 2008 – was driven by significant price increases in crude oil, iron ore and non-ferrous metals, the NBS said.

And as Deutsche Bank noted, this new inflation is occurring in sectors that seriously affect families with lower income; used cars, food, furniture, airline fares and apparel all contributed said the Bureau of Labor Statistics.


For example, core inflation in April saw a significant contribution to used car prices pushing inflation upwards of 2% YoY mainly because prices of used vehicles on the month jumped 21% YoY according to ZeroHedge.com.


The bottom line: As Stephen Moore said, “The best thing Joe Biden could do right now is stop spending, stop borrowing, stop regulating, and let the economy get better on its own.”


  • economic growth

  • Biden recovery plan

  • deficit spending

  • federal deficit

  • COVID-19 stimulus bills

  • inflation

  • federal reserve

  • interest rates

  • Club for Growth

  • unemployment rate

  • Trish Regan

  • monetary policy

209 views6 comments

6 Comments


Rising prices are a result of, not the cause of, inflation. One thing creates and drives inflation and that's excessive government spending. As for the contention that current government spending is being driven by the pandemic, nonsense! Most of the trillions Biden and the Democrats are spending or proposing are for Democrat dream projects that have been in the works for several generations and bailing out of previous debts created mostly by Democrat controlled states and localities.

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Charles Wilkins
Charles Wilkins
Jun 12, 2021

Who is more disloyal or a disgrace to their Country, he Leader of Russia Vladimir Putin for giving 3 million plus to the Biden's(Hunter) Chairman of Communist China Xi Jinping for giving a Billion dollar contract, 200 million commission to the Biden's {Hunter] or "the persons who stuck out their hands to received that money" [Hunter}? This is the question all Americans should be asking now, under the current political decision process, Who is giving public quotes, using the "Communist leaders"? Who is trying to cancel July 4th holidays? Who did a "piss poor job" talking about our hero's on Memorial Day? Who is trying to kill our "pipe lines"? Who is driving our Country towards bankruptcy? Who won't protect…

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Jay Robison
Jay Robison
Jun 12, 2021

I've seen our assets grow in the last year so that our assets are now double what they were. Even though our net worth is only about 50% higher it is because we had a new custom-built home constructed for us and we've lived in it for a little over 9 months now and our mortgage is now more than 5x what it was. But we have seen the value of our new home rise about $150K in that time and the value of our other investments increase substantially... however, nearly all of that is due to inflation, not the growth of wealth nationally or personally. The root cause of which is government printing presses producing more and more currency…

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Jay Robison
Jay Robison
Jun 13, 2021
Replying to

I'm not sure I follow your reasoning here. I've bought and sold negotiable assets over quite a few years and never heard of anyone having to pay capital gains on an asset that gains value before it was sold to actually realize a gain. If, after holding onto an asset, like real property or stocks/bonds, gold, silver, etc., and it eventually decreased in value when you sold it, where is the capital gain. The most recent real property asset I sold gained more than 650% over 40 years, but I only paid state and local property taxes on it until I sold it last year. And, more than likely won't pay capital gains on it since I rolled it over…

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Seriously, "Urgent Inflation Alarm", really? What we are now seeing, what is being predicted is nothing compared to what is coming, what is planned!

As bad as Biden and his handlers have destroyed our economy, our border, our energy, everybody needs to be aware of the simple fact that, THEY AIN'T DONE YET!

Have they NOT made their intent clear? Trump proved just how easy it was for us to have a thriving, prosperous economy, energy independence and a secure border. Are there any out there that are unable to see the intent in reversing all of that?

Clearly, all that is good for the USA is exactly what the Democrats DO NOT want, a fact that is not open…

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