Select Page

Economic reality crushing Biden’s good news political gospel

Economic reality crushing Biden’s good news political gospel

In the past few days, we have received convergent and conflicting news regarding the American economy. We all understand that Presidents spin economic news in their favor.  “Spin,” that is.  Biden, on the other hand, creates totally false narratives.  He redefines terms.  He tells wholesale lies.

Although it was inadvertent, Biden revealed his messaging problem.   JPMorgan Chase Chairman Jamie Dimon, the Federal Reserve, the International Monetary Fund, and prominent economists flew warning flags of continued high inflation and the likelihood of a significant recession.  So, what was Biden’s response?  He assured the nation that there will be no recession — but if there is, it will be a short one.

It reminded me of an example of bad parenting – telling the child to NOT take any cookies out of the cookie jar but if they do, to clean up any mess.

The first problem with Biden’s assurance is that according to traditional economic standards, the economy has already dipped into a recession – meaning negative growth in two quarters.  The Biden administration discarded that factual report by simply saying the traditional standard does not apply.

In one recent month, Biden declared that there was “zero inflation” because it did not increase that particular month.  Inflation was raging at 8 percent as he said that.  But goods and services were still going up … and up … and up.

Weeell … that is one way to get rid of inflation and a recession.  Just close your eyes and say it does not exist.  Biden is doing that again.  It is also the same denial strategy that he has applied to the inflation that would not arrive – and then would be mild and short lived.  And when the inflation was severe and prolonged, he claimed that it had nothing to do with his government spending policies — too much money chasing too few goods. Plus his actions drastically cut American oil production sending pump prices through the roof and causing supply chain problems.  Then there was his claim that 70 percent of Americans would have Covid shots by June of 2021 – not even close today.  But I digress.

Biden has taken full credit for the recent reduction in gas prices by flooding the market with America’s Strategic Oil Reserves.  He does not mention that for the sake of national security, he is going to have to purchase a lot of higher priced oil and gas to restore the Reserves (more inflation).

The fed has been raising interest rates at a record pace to tame the inflation.  Based on the lack of success, they are going for another round or two of interest rate hikes.  That means the people will pay more for the goods they buy– and more in interest on the credit cards they use.  It will also create unemployment and a drop in the stock market.  (Think of all those retirement accounts losing money).

Now we have the latest inflation report – and it has increased.  The overall inflation rate increased to 8.4 percent.  BUT … the inflation rate for the essentials – the Consumer Price Index — is at 13 percent.  If you purchased a $400,000 home s year go, your monthly payment was approximately $1600.  Today it would be $2600.

While Biden continues to paint a rosy picture of the American economy, the future is not looking good for the average consumer.  Most experts say that inflation will continue well into 2023.  Even worse, they see a nasty recession next year.

Most of Biden’s good news about the economy is designed to limit any backlash against Democrats in the upcoming midterms elections.  A lot of folks are already casting ballots – and the latest inflation report is a disaster for Biden and Democrats.  Even worse, it is the last report before the November election — less than four weeks away.

The current economy – and the prospect for the future – is not looking good for the American consumer.  Biden’s only political option at this point is to paint a pretty picture and hope that American voters will believe what he tells them rather than what they see with their very own eyes in the real world.

I have always had trust in the collective wisdom and good judgment of the American people. That is why I am sticking to my predictions of a very good day for Republicans on November 8th.

So, there ‘tis.

About The Author

Larry Horist

So,there‘tis… The opinions, perspectives and analyses of Larry Horist Larry Horist is a businessman, conservative writer and political strategist with an extensive background in economics and public policy. Clients of his consulting firm have included such conservative icons as Steve Forbes and Milton Friedman. He has served as a consultant to the Nixon White House and travelled the country as a spokesman for President Reagan’s economic reforms. He has testified as an expert witness before numerous legislative bodies, including the U. S. Congress. Horist has lectured and taught courses at numerous colleges and universities, including Harvard, Northwestern, DePaul universities, Hope College and his alma mater, Knox College. He has been a guest on hundreds of public affairs talk shows, and hosted his own program, “Chicago In Sight,” on WIND radio. Horist was a one-time candidate for mayor of Chicago and served as Executive Director of the City Club of Chicago, where he led a successful two-year campaign to save the historic Chicago Theatre from the wrecking ball. An award-winning debater, his insightful and sometimes controversial commentaries appear frequently on the editorial pages of newspapers across the nation. He is praised by readers for his style, substance and sense of humor. According to one reader, Horist is the “new Charles Krauthammer.” He is actively semi-retired in Boca Raton, Florida where he devotes his time to writing. So, there ‘tis is Horist’s signature sign off.

4 Comments

  1. Harold blankenship

    The old fool really thinks that things are good on his watch. And idiots in the democrat party believe that shit. Just wait. Someday a school will be named after Biden. It’s probably going to be a school for special needs kids

  2. ACE of ♥️

    You are right, you do digress. Good thing you’re not the ordinary average consumer in this market you lay at Biden’s feet. As Republicans sit on their hands loudly complaining they are not combining forces with their friends across the aisle.
    Consider the economic consequences the country has gone through over the past 12 quarters or more. I know unprecedented has been over used by all while normalcy took a beating across the board. Life for the majority of Americans suffered unprecedented changes financial. educational (personal and family), job/career, housing, and in all physiological.
    The situation facing us the majority who live at the margin week to week is not improved a single penny’s worth by self proclaimed economics experts shouting told ya so back there. It’s past history and who knew how world economical/political circumstances rearrange the playing field.
    Working to stabilize conditions in this country with the current international context in turmoil and fear requires abilities you and can not imagine.
    On a relatively calm day for Biden, you or I would not, could not standup under it, Armchair, if I was king, I’d do things differently, better than, Probably not. In fact most certainly not, on every occasion.
    It’s like rich people handling wealth are not like poor or average people only with great wealth. Rich people earn it or inherit it and understand life with wealth. High political office has its own unique rarified air. Not many persons are up to surviving that environment. The nation watched Trump implode at that political high altitude. He became like the poor person winning The Lottery Jackpot goes bankrupt in under 5 years. So, it is in Trump’s case. Surprisingly, he had the winning number in the ‘16 political lottery gaining the Presidency on a technicality, not the popular vote. In under 4 years he ended up politically bankrupt, fighting for his life, legally
    If he had gained a second term, this country would be virtually ruined in every way possible. Geopolitically moved out of first place, economically over in depression, strategic militarily incapacitated by leadership, morally crucified worldwide, and that’s the short list.
    Trump would have brought with him cultural winter to America. His mere presence back in the White House would ensure an unprecedented setback likened to extinction. Your MAGA party would have lead the charge to democracy’s extinction by ignorant false conservatism.
    The hand Biden got from Trump was loaded with jokers, unplayable in any game. The messy deal forced tough calls no Republican backed. Yet, all Americans benefited. Considering the alternative, Republicans might better hold their fire.

    • larry Horist

      Ace … think $4 trillion in spending … unprecedent border crossings … soaring crime rates … a Fentanyl epidemic … the loss of Afghanistan to the terrorists … rising taxes on the middle class … soaring interest rates … supply chain shortages … emboldened adversaries in China, North Korea and Russia … unresolved segregation and racism in Democrat run cities …. demoralization of the community police forces … soaring oil prices (and not even enough respect to stop the OPEC reduction in supply) … and your defense of Biden is that no one could have done better. You are talking about what will go down in history as a failed presidency, in my judgments. American are suffering under economic pressures and the loss of purchasing power … and you say we have all benefited. Your view is like telling Mrs. Lincoln that it could have been worse because she didn’t get blood on her dress. Come on, man. You’re eating the ice cream.

  3. frank stetson

    I actually agree with Larry on a lot of this: we are in a technical recession, they have attempted cheerleading, but have lied in a number of instances on these financials. It may be a weird recession, but they all are. Remember, wherever you are in the economy, you have never been here before. Biden’s and Yellen’s messaging has been both appropriate and abysmal. You can’t change the definition from the bully pulpit. You can explain it, but you can’t change it. It’s expected to see some cheerleading, Larry would applaud that from Trump, probably. Especially since many a recession is caused, or ended, based on belief’s, not facts. Myself included.

    To ACE’s “The hand Biden got from Trump was loaded with jokers,” I would add — in spades. It’s almost as it Trump knew what he was doing like some sort of idiot-revenge-savant with the land mines he left. Myself included, I saw those land mines and dumped most equities at the end of 2021. I picked up a couple covid/inflation picks 1q22 and now they are tanked. But mostly, I sat on cash until interest rates rose and now have many a brokered CD to ride out the storm. But, frankly, and I can be frank, it was my feelings and I could have waiting until end of 1q or later if I KNEW what was really happening. My point is ultimately all financial decisions are made with the gut, no matter how smart of how much data you have. This time I got lucky.

    But I digress… Trumps’ land mines included over 3.8T in stimulus, the most egregious of which was $980B signed on 12/28/2021 as he slammed classified documents into 35 boxes to haul ass to FL. That’s a fucking land mine that Biden stepped right on. Why? Rather than waiting, because he’s just elected and looking for instant voter gratification, he let loose $1.9T more stimulus in 1q2021. Here’s the breakdown showing Biden as queen of the pigs —- you know what that makes Trump, IMO.

    On top of that “free money” tsunami, Trump unleashed his tax bill for the rich and big business, putting $2T in business and consumers hands over 10 years. This second land mine adds 200B to our pockets every year while simultaneously taking that amount OUT of the Federal pocket — a double whammy to inflation.

    The third land mine was GDP growth or Trump’s lack thereof, worst since Hoover, a paltry 2.5% per year.

    Now you have lots of money out there, but no economic growth to which Biden doubles down with more free money. Add global pricing pressure, supply chain hiccups, and we’re off to inflation races, globally. Biden saying it won’t be bad just does not help. He should have seen all of this, seen Trump’s December surprise, and waited a bit, probably one quarter would have done. Instead he basically said “spend away, it’s over, here’s some more money” and the result is accelerated demand.

    IMO, Trump started this, but Biden voted even more free money for political reasons, before he measured the results of Trump’s December 2021 land mine and now we are in it with the rest of the globe. Meanwhile, business, which is the hugest beneficiary of all this is posted record profits, buying down debt, raising prices, and the beat goes on.

    At this point it can only end with higher unemployment as the bubble bursts. Faking economic statistics, rosy messages, are not helpful. Even with the moves I made, I am down significantly. Biden / Yellen are wishful thinkers, making some really bad financial moves based on politics, and here we go. It pretty much seems inevitable, the only question is how bad. So far, so good, except for recent market losses, but IMO, all we got is hope.

  1. Frank and Larry, I agree with both of you! Just another trifecta of joy and harmony! I do think Frank…