/ world today news/ Back in the spring, the newly minted US Treasury Secretary Janet Yellen convinced the population that the problem with dollar inflation is only temporary.
Since then, price increases have only accelerated, reaching 5.4% in June, the highest in 30 years of US history.
Now the White House economists are hastily changing their shoes in the air. Yellen has already predicted another N number of months with “rapid inflation” and worries about the state of the overheated real estate market, which has grown by more than 15% in the crisis year and a half.
It has been said that the current period of high inflation could last not months but years – as, for example, it was during the era of stagflation in the 1970s. And the population must mentally prepare for a long and painful rise in prices in general for everything.
In the coming months, the White House plans to allocate $1.2 trillion almost simultaneously for “infrastructure reform” and another $3.5 trillion for various social programs. This massive cash injection into the already cash-strapped US economy is expected to lead to an even bigger spike in inflation.
Meanwhile, the Fed, whose balance sheet more than doubled during the pandemic, continues to pump money into financial markets. Domestic economists understand that without a steady supply of “cheap money,” the American economy will quickly collapse.
The technocratic team in the Biden administration is in a real trap. They cannot afford to stop injecting money for fear of catastrophic consequences for the economy. But constant money pumping leads to increasing inflation and imbalance of the entire post-Bretton Woods dollar system.
Therefore, all they have to do is feast during the plague by allocating ever-larger budgets to feed the Washington bureaucracy, party apparatchiks and lobbyists. And we ourselves desperately hope that their monetary experiments will not end in another cataclysm.
#headed #runaway #inflation
