Sometimes I think of all the places I don’t want to go
Then I think of all the things I never want to do
Think of all the people I never want to meet
I close my eyes and I go to sleep
– Green Corn, NOFX
Prayers for the ‘Big Guy’
Working in government comes with its perks. Eleven paid holidays, promotions despite inadequate performance, and impressive benefits are just a few advantages. Even more enticing, one can amass considerable wealth—even if they stumble along the way.
Take President Joe Biden as an example. After nearly five decades in federal service, his estimated net worth stands at around $9 million.
Interestingly, Biden and his wife Jill earned an astonishing $17.3 million from book deals and speaking engagements while he was out of office between 2017 and 2020. Such financial rewards often accompany a lifetime in public service.
The Good Book instructs us to pray for our leaders. First Timothy 2:1-2 (KJV) clearly states:
“I exhort therefore, that, first of all, supplications, prayers, intercessions, and giving of thanks, be made for all men; 2For kings, and for all that are in authority; that we may lead a quiet and peaceable life in all godliness and honesty.”
Here at Economic Prism, we haven’t offered a prayer for Joe Biden yet. Perhaps it’s time we did. He remains a significant figure, but he certainly is in over his head.
A recent Reuters/Ipsos poll revealed that Biden’s approval rating has plummeted to a mere 36 percent. The challenges facing him are numerous, including a poorly executed troop withdrawal from Afghanistan, surging inflation at a 40-year high, skyrocketing gas prices, shortages of baby formula, and an ongoing border crisis—not to mention the difficulties surrounding Vice President Kamala Harris.
The economy seems to be heading toward a severe downturn. After five decades of relentless, debt-driven spending, the only direction left is down.
And descending is far less enjoyable than ascending…
Extreme Intervention
What will Biden do when confronted with 30 percent unemployment amidst $20 per gallon gasoline?
Will he impose price controls? Will he impose windfall profit taxes on oil and gas corporations? Will he eliminate student loan debt? Will he escalate military aid abroad?
Biden is considering various initiatives, and an endless list of potentially destructive measures is on the table. We wouldn’t put anything past him.
Moreover, Biden is not alone in his blunders; his administration is equally filled with missteps. The situation becomes especially dire regarding economic management.
For instance, the Environmental Protection Agency (EPA) recently mandated that Americans increasingly use food—specifically corn ethanol—as fuel. While there may be some logic to it in ordinary times, enforcing such a measure amid impending food shortages is, at best, asinine.
These decisions stem from individuals who face no repercussions for their actions. They work in temperature-controlled environments, send and receive emails, sit through meetings, form task forces, and build consensus.
Ultimately, they make recommendations that get adopted by boards and commissions, leading to absurd requirements for citizens to burn food as fuel without any recourse.
Across the economy, government interventions complicate pricing. From the fuel you use to the electric vehicles and subsidized healthcare, government interference raises costs while diminishing the quality of goods and services.
Is Inflation Moral?
Now, as inflation reaches heights not seen in 40 years, the very individuals who began this crisis must attempt to resolve it. Treasury Secretary Janet Yellen, previously the Federal Reserve Chair, is among those chiefly responsible for the current inflation outcry.
Working alongside her counterpart, Fed Chair Jay Powell, Yellen helped inject over $5 trillion into the economy between March 2020 and May 2022. While Powell manufactured credit out of thin air, Yellen ensured that Congress had the requisite Treasury notes to authorize spending.
Some might argue that Yellen is merely misguided, yet her actions suggest otherwise. While not the forgetful figure that Biden is, nor the simple-minded individual that Harris can appear to be, Yellen presents a façade of confusion regarding the inflation crisis.
Just a year ago, Yellen claimed that there would be a “small risk” of inflation and that it would be “manageable.” Now, she admits to being “wrong then about the path inflation would take.”
The truth, however, is that Yellen has long embraced inflation. Her advocacy for inflationary policies stretches back decades. In 1995, during a Federal Open Market Committee meeting, she suggested allowing inflation to exceed target levels for the sake of moral considerations. Here’s what she stated:
“To me, a wise and humane policy is occasionally to let inflation rise even when inflation is running above target.”
Her reasoning hinged on the outdated argument that inflation boosts demand, which subsequently stimulates job growth, all under the guise of promoting well-being. This reasoning is, however, merely a thinly-veiled justification for reckless policies.
How Inflation Got Away from Washington Screw Ups
Yellen’s career has revolved around her work with both the Fed and the Treasury. She is an advocate for creating inflation, which ostensibly allows Washington to repay federal debt using currencies devalued over time. Essentially, her strategy is to inflate away the debt.
This positions her squarely among the ranks of major blunders, akin to Biden. She believes she can dictate the inflation rate as one might adjust a thermostat—but that is a dangerous misconception.
While she may have aimed for a 4 percent inflation rate, the reality has soared past 8 percent—though, as of this writing, the May CPI report remains unissued. In truth, inflation rates are likely far higher than the official numbers suggest.
The bottom line is that attempting to control inflation through government action is a perilous game. Much like playing with fire, it can lead to disastrous outcomes.
For instance, the recent Hermits Peak-Calf Canyon fire in New Mexico, the largest in the state’s history, ravaged over 320,000 acres of the Santa Fe National Forest.
What many may not know is that this fire originated from prescribed burns initiated by the U.S. Forest Service, which believed it was acting in the best interest of fire management, yet lost control.
Similarly, Yellen, Powell, and other officials at the Fed and Treasury may have thought they were doing a good thing. They believed that through policies of extreme currency debasement, they were stimulating the economy while alleviating the burdens posed by national debt.
Ultimately, they lost control and instead ignited an inflationary inferno they cannot extinguish.
[Editor’s note: Don’t let Washington’s control-obsessed officials jeopardize your hard-earned savings. With inflation eroding your financial stability, it’s time to consider a financial escape plan. Over the past six months, I have devoted my efforts to identifying effective, practical strategies individuals can adopt to safeguard their wealth and maintain their financial privacy. The results of this research are compiled in the Financial First Aid Kit. If you’re interested in learning more about this essential publication and how to obtain your copy, visit here today!
Sincerely,
MN Gordon
for Economic Prism
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