By Jeff Harris
By now you’ve probably heard that if you’re receiving Social Security benefits you’ll be getting a raise in 2022. According to Wolf Richter’s Wolf Street report published December 6th, 2021 the Cost of Living Adjustment (COLA) for Social Security beneficiaries will rise 5.9% for 2022. That’s the highest increase since 1982! You’re going to be getting more money so that’s a good thing, right?
The latest spin by main stream media outlets is that inflation is a GOOD thing because it shows just how great our economy is! I’m not making this up. The powers that be obviously think US citizens are so ignorant that they can have their media mouthpieces say incredibly stupid things like this with a straight face and people will believe them! Tragically, I’m afraid many do believe such a fairy tale.
No mention of what’s actually igniting the inflation fires; the six TRILLION dollars conjured out of thin air by a Panicked Congress and Federal Reserve. Not a word about the financial firehose that spewed out multiple stimulus checks, hyped up unemployment benefits and “forgivable” pandemic loans. Not a peep about the Federal Reserve continuing to prop up financial markets with over $100 Billion per MONTH in stimulus.
For more than a year those same media mouthpieces have pushed the inflation is “transitory” fairy tale. Telling us that there was nothing to worry about because this little inflationary blip would not last and soon we would see inflation settle back down.
Well, think about this.
If we’re now being told inflation is a GOOD thing then why were they trying to pretend rising inflation was only temporary just a few months ago? Shouldn’t they have said we can only hope this inflationary surge will continue and even grow? If a little inflation is good then surely more is better?
Powell admits Inflation Isn’t Transitory
According to Fox Business November 30, 2021 Fed chairman Jerome Powell admitted inflation was NOT transitory as he spoke to the Senate Banking Committee. In true Fed gobbledygook speak he said:
"So I think the word transitory has different meanings to different people," Powell told Sen. Pat Toomey, R-Pa. "To many, it carries a time, a sense of short-lived. We tend to use it to mean that it won't leave a permanent mark in the form of higher inflation. I think it's probably a good time to retire that word and try to explain more clearly what we mean."
Chairman Powell is obviously trying to cover his hind parts as the “inflation is transitory” myth is rapidly falling apart. Fed speak is designed to obfuscate, confuse and misdirect blame for stupid policies.
Saturday Night Live
The last time we had sustained inflation was the decade of the 1970’s. An article published in National Review November 15, 2021 by John Fund recalled how Saturday Night Live mercilessly lampooned President Jimmy Carter. Carter had taken to nationally broadcast fireside chats with him wearing a sweater (to save energy) in a vain attempt to “cheer up” the nation as inflation surged. Fund writes:
“Under the Carter administration, no one pretended that inflation was anything other than a cruel tax that preyed on the poor and elderly the most. Any other discussion was mercilessly satirized. . . . Dan Akroyd as Jimmy Carter explains that inflation is no problem at all:”
Thinking individuals understand inflation is an insidious cancer that eats purchasing power as the value of the dollar decreases due to too many dollars flooding the economic system. And that’s exactly what has happened over the past 20 months. Odds are the stirring inflation monster is only awakening from his slumber and will wreak even more havoc in the months to come.