By Andrew Moran *
White House press secretary Jen Psaki made a lie during a press briefing, saying “no economist predicts this will have a negative impact on inflation.” Of course, Psaki is referring to President Joe Biden’s $ 1.75 trillion social policy and climate change, Build Back Better Act (BBBA). The Congressional Budget Office (CBO) recently confirmed that public policy will face a $ 367 billion shortfall and could add $ 2.5 trillion to debt if many of the sunset provisions are extended by future sessions of Congress.
Psaki also claimed that the BBBA will ease inflationary pressures, despite the argument that inflation was not on the horizon earlier this year. But his main argument was that “no economist” had questioned the inflationary effects of Democrats’ legislation. Is that even correct?
Whore. Indeed, several well-known economists are sounding the alarm bell on inflation. Steven Hanke, the eminent professor of applied economics at Johns Hopkins University, told RealClearPolitics that “they are all wrong,” adding that inflation is booming because “the money supply which has increased by more than 35% since COVID, an explosion unprecedented since World War II”.
Mark Zandi of Moody’s Analytics, Douglas Holtz-Eakin of the American Action Forum (AAF), and Harvard University professor Doug Elmendorf – all senior economists – agreed that BBBA would raise inflation in 2022. But there is had some disagreement over how much inflation it would trigger. “We can get some growth,” Holtz-Eakin said. “But we are not avoiding additional pressure on inflation.”
As Nation of Liberty noted, one of the main problems with the initiative is that a considerable portion of the $ 1.75 trillion spending blitzkrieg is loaded up front. This means that around 40% of the spending will flow into the economy. While this can boost gross domestic product and potentially create jobs, it will certainly add to inflation problems. In addition, since the measure will be short of hundreds of billions of dollars, the money will have to be printed or borrowed.
Hillary Clinton: crypto could destabilize the world
Hillary Clinton, the former secretary of state and destroyer of worlds who will never become president, suggested that she take crypto-currencies, proving that it remains the statist of all statists.
Speaking at the Bloomberg New Economy Forum in Singapore on November 19, the two-time presidential candidate complained that crypto has the power to destroy countries and threaten the US dollar’s international reserve currency status. . She believes tech-backed “asymmetric power centers” could sabotage governments by facilitating “disinformation, artificial intelligence and the rise of cryptocurrency.”
“Another area that I hope nation states start paying more attention to is the rise of cryptocurrency – because what seems like a very interesting and somewhat exotic effort to literally mine new coins. in order to trade with them has the potential to undermine currencies, to undermine the dollar’s role as a reserve currency, to destabilize nations, perhaps by starting small but going much bigger. “
Wait a minute. Is Clinton suggesting this is a bad thing? That’s probably his intention, but there’s nothing necessarily wrong with blockchains, cryptography, and smart contracts bringing the global establishment to its knees, although that is unlikely. Still, it’s surprising that Clinton didn’t blame Bitcoin for shattering his White House dreams.
Turkey comes to a boil as Lira crashes again
The Turkish lira hit new record lows against the US dollar and the euro this week. The pound, one of the worst performing currencies in global forex markets, is on the verge of collapse as the USD / TRY and EUR / TRY currency pairs are up 13%: 11.3208 and 12 , 8232, respectively.
Investors sold the lira to the central bank by cutting interest rates amid a inflationary crisis. Policymakers reduced the benchmark week repo auction rate by 100 basis points to 15%. The overnight borrowing rate was reduced to 13.5%, while the overnight borrowing rate was lowered to 16.5%. A 300 basis point U-turn to the good old days of spring 2021 will not happen.
It comes as Turkey’s annual inflation rate has climbed to almost 20% and the Producer Price Index (PPI) has surpassed 46%. Ankara‘s only silver lining is that foreign exchange reserves have recovered, remaining above $ 80 billion for eight consecutive weeks. But does it matter when a currency crisis intensifies?
President Recep Tayyip Erdogan’s unorthodox monetary policy will remain intact, defending the strategy as a way to support people who have been “crushed by interest rates”. He told lawmakers in parliament that “I cannot and will not stay on this path with those who defend interest rates.” However, market analysts warn that easing policy and diluting currencies would seriously hurt the Turkish economy.
* About the author: economic correspondent at LibertyNation.com. Andrew has written extensively on economics, business, and politics over the past decade. He also writes about economics on Economic Collapse News and commodities on EarnForex.com. He is the author of “The War on Cash”. You can find out more at AndrewMoran.net.
Source: This article was published by Nation of Liberty