
<p>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.</p>



<p>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 &#8212; but if there is, it will be a short one.</p>



<p>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.</p>



<p>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.</p>



<p>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 &#8230; and up &#8230; and up.</p>



<p>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 &#8212; 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.</p>



<p>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).</p>



<p>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).</p>



<p>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 &#8212; 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.</p>



<p>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.</p>



<p>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 &#8212; less than four weeks away.</p>



<p>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.</p>



<p>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 8<sup>th</sup>.</p>



<p>So, there ‘tis.</p>

Economic reality crushing Biden’s good news political gospel
