After April’s consumer price index (CPI) report was published, a number of American economists and bureaucrats said that inflation had peaked and it was possible that inflation would subside. However, statistics from the U.S. Labor Department indicate the CPI increased 8.6% from a year earlier, as the month of May’s inflation data reached another lifetime high.
According to CPI, inflation has not reached its peak as of May
The U.S. economy doesn’t look so hot these days and after shutting down the economy over a respiratory virus and printing trillions of dollars in stimulus, it seems these ideas were huge mistakes. Inflation is the general increase in the cost of goods and services, and currencies like the U.S. dollar can’t buy as many goods and services as they could when inflation was lower. According to reports, almost everything sold in supermarkets is now more expensive, while the cost of rent, gas, and housing has skyrocketed. Prices of goods and services continued to rise even though politicians told the public inflation would be “transitory.”
Perhaps creating the Fed was the initial policy error. pic.twitter.com/6SRYSLQCPy
— Sven Henrich (@NorthmanTrader) June 11, 2022
When April’s CPI data was published, some people even claimed that inflation had “peaked,” but the latest CPI data from May shows this claim did not come to fruition. U.S. inflation data from the Labor Department’s metrics indicate that last month’s CPI hit a 40-year high at 8.6%. American inflation has been so severe that stimulus checks, increased child-tax credits, extended unemployment benefit, and even the minor rise in wages were all erased by increasing prices of goods and service costs.
Inflation does not occur in a vacuum. Putin does not cause inflation. The prices will continue to rise and remain high. Inflation is a worldwide phenomenon. The central banks that debase currency and print money are the main causes of inflation. Satoshi was created because of inflation. #bitcoin pic.twitter.com/4aFQ68OVUB
— PlanB (@100trillionUSD) June 11, 2022
The Labor Department’s metrics show that rising food, gas, and energy prices have pushed the CPI data higher and shelter costs were one of the largest contributors to last month’s inflation data hike. Although some U.S. workers saw an increase in their earnings, the real average wage dropped 0.6% in April. Economists who noted that April’s data was ‘peak inflation’ are starting to notice that the cost of goods and services keeps peaking. Morning Consult’s chief economist, John Leer said that May’s CPI was upsetting.
“It’s hard to look at May’s inflation data and not be disappointed,” Leer explained on June 10. “We’re just not yet seeing any signs that we’re in the clear.”
‘It Might Not Have Been a Good Idea to Shut Down the Economy for a Respiratory Virus’
Meanwhile, Joe Biden, the U.S. President continues to blame Russia’s Vladimir Putin. “Today’s inflation report confirms what Americans already know — Putin’s price hike is hitting America hard,” Biden stressedAt a press conference held this week. Many people believe that the Covid-19 stimul bill and lockdowns were terrible ideas. “I’m beginning to think it might not have been a good idea to shut down the economy for a respiratory virus,” the economist Jeffrey Tucker wroteFreitag
Pres. @JoeBidenKeep lying. He lies to be blamed #inflation #PutinDomestic shipping firms and foreign-owned shipping companies that are greedy #oil companies. Falsely, he also claims that families are more financially secure and have less debt since he was elected and that the U.S. economic system is the strongest in the world.
— Peter Schiff (@PeterSchiff) June 10, 2022
Thomas Massie from Kentucky is a U.S. Rep. He has now shared his statements back in 2020 where he claimed that it was not the most ideal idea to approve the enormous stimulus bill. In January, Massie said: “Too many people failed to see the bill being passed would cause massive inflation, its passage without members present would set the tone for nationwide mail-in ballots, the money would enable all of the lockdowns, and paying people not to work would kill productivity in the U.S.” Yet, many critics gave Massie a hard time about his contrarian statements and resorted to ad hominem attacks.
“Massie just says whatever stupid thing pops in his head,” one individual wrote in response to Massie’s tweet at the time. The Kentucky representative recently fired back at the individual’s comment and said this “tweet did not age well.”
In 2020, Democrat senator John Kerry said “Congressman Massie has tested positive for being an a**hole.” The Kentucky representative also decided to mock Kerry’s tweet and remarked that he predicts “Democrats will sequester John Kerry and his energy-price-hiking dogma in a rock formation until at least November.” Massie added:
Here’s his doltish tweet when I opposed the first $2 trillion printing spree on March 27, 2020 – because it was going to cause inflation .
Massie wasn’t the only person who opposed the trillion dollar monetary expansion. Peter Schiff, an economist was quick to critique those who supported it. On the same day as John Kerry’s tweet in March 2020, Schiff wrote: “As the Fed will create all this money out of thin air the people will pay the cost through inflation. Consumer prices are about to soar, wiping out the savings of millions of Americans, and destroying the purchasing power of wages for millions more.”
How do you feel about CPI and contrarian views that oppose the shutdown of the economy and huge spending for 2020? Comment below and let us know how you feel about the subject.
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