Pinkerton: What Inflation Does and What to Do About It — from Someone Who Lived Through the Great Inflation of the 1970s
James P. Pinkerton 18 Jul 2021
For much of the Biden presidency, the Main Stream Media-approved economic experts have been nonchalant about inflation.
Even as prices were rising—gasoline, for instance, jumped by about 20 percent in the first two months of the Biden presidency—the public was advised to stay calm.
Sample March 10 headline from the reliably pro-Biden New York Times: “Inflation Fear Lurks, Even as Officials Say Not to Worry.” The article quoted Jerome Powell, chairman of the Federal Reserve, saying that the price-spikes were nothing to be concerned about. According to Powell, “There’s a difference between a one-time surge in prices and ongoing inflation.” The Times explained that Powell “expected the coming increase to be transitory.”
The same article quoted Kathy Bostjancic of Oxford Economics saying, “Outside of another buoyant advance in energy prices in February, consumer price inflation remains very tame.” And the piece also quoted JP Morgan Chase CEO Jamie Dimon saying of inflation, “I wouldn’t worry too much about it.”
Yet then a funny thing happened: Inflation happened. On July 13, we learned that the Consumer Price Index rose 5.4 percent over the preceding year, and on July 14, we learned that the Producer Price Index surged 7.3 percent over the previous 12 months. At these rates, prices would double in the next 10 to 15 years. Or, to put that another way, the value of a dollar would be cut in half.