LARRY KUDLOW: The Biden-created affordability crisis is worsening
Joe Biden’s heavy-duty federal spending fiasco is forcing interest rates to rise and keeping higher than expected inflation alive. Biden has poured in almost $6 trillion in new spending and it looks like he’s planning on at least another $4 trillion in the years ahead, that is according to the new CBO baseline.
Bidenomics would move federal debt held by the public all the way to $48 trillion – from $26 trillion presently, as though that weren’t bad enough – as the share of GDP borrowing could reach 116% in the years ahead. That’s well over twice the fifty-year average of 48% of GDP.
So, you have the Fed trying to restrain inflation on the one hand, but the Biden administration’s huge spending and borrowing look to be increasing inflation once again. Today’s unexpected CPI increase of three-tenths of 1% – coming to 3.1% over the past year – now, that may not be a one-shot aberration.
THOUSANDS OF UBER, LYFT, DOORDASH DRIVERS TO STRIKE ON VALENTINE’S DAY TO DEMAND FAIR PAY
Over the past three months, core inflation, that is excluding food and energy, is up 4% at an annual rate. Remember, the Fed’s target is 2%. Jay Powell’s goofy inflation measure of core services excluding housing is actually up 6.7% annually over the past three months.
That’s the fastest rate in nineteen months. Meanwhile services inflation itself is rising 6.4% annually over the past three months and, just to add to it, the latest ISM survey of manufacturing prices just moved above 50% for the first time in ten months. These are not good numbers. They suggest inflation is creeping higher, not lower. Long-term bond rates spiked all the way to 4.3% – up 14 basis points. They’ve been shooting higher since the new year began.
READ ON THE FOX BUSINESS APP
All of the Bidens’ government spending gave a temporary boost to GDP, but now they’re paying the inflation piper. Actually, we are paying the inflation piper. Outsized price hikes continue to pop up all over the economy. Since Biden took office, groceries are up 20.8%. Energy up 29%. The CPI itself is up 18%.
Want more? Eggs up 37%. Gasoline up 33%. Baby food up 29%. Electricity up 28% and I could go on and on. With all these price hikes for live-a-day essentials, real average weekly earnings for typical families have fallen by 4.9% under “Bidenomics.”
That key measure under Trump rose $6,000 for families, or roughly 9%. Minus 4.9%, plus 9%. Now, that’s a contrast. So, folks, the moral of the story is you can’t spend your way into prosperity. All of a sudden, prices are going up again, interest rates are going up again and the Biden-created affordability crisis is worsening.
If it weren’t an election year, the Federal Reserve should probably be tightening their money and interest rate targets, but certainly not lowering them, that’s for sure. Like I said, money can’t buy you love.
This article is adapted from Larry Kudlow’s opening commentary on the February 13, 2024, edition of “Kudlow.”
Original article source: LARRY KUDLOW: The Biden-created affordability crisis is worsening
News Related
-
Anyone who’s purchased gift baskets to hand out to loved ones this holiday season might need to find a backup present after the latest food recall that involves festive cookies. Gift basket company Wine Country Gift Baskets just announced that it is voluntarily recalling all gift baskets that feature Acorn Baking ...
See Details:
Recall Just Announced For Popular Cookies Featured In Holiday Gift Baskets
-
LOS ANGELES: Quarterback Jalen Hurts ran in an overtime touchdown to give the Philadelphia Eagles a 37-34 NFL win over the Buffalo Bills Sunday (Monday in Manila) and move them to 10-1 on the season. The Eagles, who lost the Super Bowl to Kansas City last season, trailed at half-time ...
See Details:
Eagles rally past Bills in overtime as Chiefs win
-
Yen Makabenta First word WHILE UN Secretary-General Antonio Guterres and other promoters of the climate emergency are preparing to convene the 28th conference of the parties (COP28) of the UN Framework Convention on Climate Change (UNFCCC) in the United Arab Emirates, starting on November 30 and stretching to December 12, ...
See Details:
Reality bites the green energy agenda
-
Sandigan orders Marcos Sr. pal to pay workers The Sandiganbayan has ordered the enforcement of a July 2023 ruling ordering a Marcos Sr. associate to pay a lumber company’s workers P2.1 million in damages as well as return 60 percent of their company’s shares and pay all unpaid benefits. The ...
See Details:
Sandigan orders Marcos Sr. pal to pay workers
-
DSWD: Shear line, LPA affect 1.2 million people; over 18,000 families evacuated MANILA, Philippines – More than 18,000 families have fled to evacuation centers across flood-affected regions in the country due to the impact of the shear line and low pressure area. Department of Social Welfare and Development (DSWD) gave ...
See Details:
DSWD: Shear line, LPA affect 1.2 million people; over 18,000 families evacuated
-
-
MANILA, Philippines: The entire Luzon, including Metro Manila, is expected to experience isolated rain showers and thunderstorms as the northeast monsoon (“amihan”) and easterlies will be affecting the country over the next 24 hours, the state-run weather agency said on Tuesday. Weather specialist Patrick del Mundo of the Philippine Atmospheric ...
See Details:
Rain showers, thunderstorms over Luzon, including Metro Manila — Pagasa
-
Attention, Naruto fans! You can soon watch the famous anime’s live-action adaptation as it finally has a confirmed writer. According to a Variety report, the beloved manga and anime series is set to head to big screens for its live-action adaptation under Lionsgate. It will be written by Tasha Hao, ...
See Details:
'Naruto' live-action film adaptation is in the works
-
Attention, Naruto fans! You can soon watch the famous anime’s live-action adaptation as it finally has a confirmed writer. According to a Variety report, the beloved manga and anime series is set to head to big screens for its live-action adaptation under Lionsgate. It will be written by Tasha Hao, ...
See Details:
NASA Highlights Stingray Nebula
-
Attention, Naruto fans! You can soon watch the famous anime’s live-action adaptation as it finally has a confirmed writer. According to a Variety report, the beloved manga and anime series is set to head to big screens for its live-action adaptation under Lionsgate. It will be written by Tasha Hao, ...
See Details:
Manila's Lagusnilad underpass opens
-
Attention, Naruto fans! You can soon watch the famous anime’s live-action adaptation as it finally has a confirmed writer. According to a Variety report, the beloved manga and anime series is set to head to big screens for its live-action adaptation under Lionsgate. It will be written by Tasha Hao, ...
See Details:
China probes debt-ridden financial giant
-
Attention, Naruto fans! You can soon watch the famous anime’s live-action adaptation as it finally has a confirmed writer. According to a Variety report, the beloved manga and anime series is set to head to big screens for its live-action adaptation under Lionsgate. It will be written by Tasha Hao, ...
See Details:
China's VUCA situation
-
Attention, Naruto fans! You can soon watch the famous anime’s live-action adaptation as it finally has a confirmed writer. According to a Variety report, the beloved manga and anime series is set to head to big screens for its live-action adaptation under Lionsgate. It will be written by Tasha Hao, ...
See Details:
Unraveling the mystery that is diabetes
-
Attention, Naruto fans! You can soon watch the famous anime’s live-action adaptation as it finally has a confirmed writer. According to a Variety report, the beloved manga and anime series is set to head to big screens for its live-action adaptation under Lionsgate. It will be written by Tasha Hao, ...
See Details:
Bangladesh's nuke plant is not going to steal PH investments
OTHER NEWS
ALIW Awards Foundation Inc. President Alice H. Reyes has released the names of finalists for the 2023 Aliw Awards to be presented on Dec. 11, 2023, at the Manila Hotel ...
Read more »
WhatsApp Web gains the feature of single-view photos and videos (Photo: Unsplash) The WhatsApp Web, the desktop version of the popular messaging app from Meta, has received an update allowing ...
Read more »
Young athletes’ time to shine in Siklab Awards MANILA, Philippines — The future heroes of Philippine sports will be honored during the third Siklab Youth Sports Awards on Dec. 4 ...
Read more »
Graphics by Jannielyn Ann Bigtas A local government official said Monday that five to 10 barangays in Northern Samar are still isolated following the massive flooding in the area last ...
Read more »
DyipPay app lets you pay jeepney fare, book tricycles “Barya lang po sa umaga.” Everyone who rides jeepneys knows this rule: it may not be an actual law, but it’s ...
Read more »
Updated In-Season Tournament Bracket ahead of pool play finale Tuesday will mark the last day of pool play for the inaugural NBA In-Season Tournament. From there, six first-place teams and ...
Read more »
PCG forms teams for maritime emergency response MANILA, Philippines — Recent incidents of fishermen lost in the waters off Southern Tagalog have prompted the Philippine Coast Guard (PCG) to form ...
Read more »