Today, TheTwo Mikes had the pleasure of interviewing Professor Michael Busler, who is the head of the Finance Department at Stockton University in New Jersey. Professor Busler gave a detailed but concise and very clear analysis of the current and threatening condition facing American citizens and their economy.
Interestingly, Professor Busler said that logistics disruptions are not the core cause of inflation, and that overall supply today is higher than it was before the pandemic. Rather, the core components of the problem are man-made by the Biden Administration.
Higher energy prices emanate from the Washington-ordered cessation of exploration, drilling, and pipeline construction. Indeed, the cost of energy probably has more to do with higher prices than the logistics problems because the cost of fuel for truckers is rising quickly at a time when truckers already are in short supply.
Also contributing to the downturn is the excess demand that raises business costs; this demand has flowed from the $11,000 — which is to rise to $14,000 in 2022 — that each family of 4 received, even if it was not harmed by the pandemic, from the U.S. Treasury, as well as the $6 trillion in new federal debt that has been piled-up because of the pandemic.
With inflation now at 7-percent, nearly three-percent above wage growth, the Biden administration and the Federal Reserve must act soon to put on the brakes by raising interest rates and reducing the money supply. If this is not done, they will add to their already strong record of deliberately fueling America’s current economic problems by allowing inflation to out-run their ability to control or manage it, thereby allowing what might be called a “nasty cancer” to be imposed on the country’s lower-and-middle classes.
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