Booming Inflation, Booming Economy 4 Xmas Stockings

WSJ notes inflation in a “booming” economy hit a 39-year high in November “as strong consumer demand collided with pandemic-related supply constraints.” Translated: Mom & Dad are eating higher prices for Christmas turkey & gifts as well as gas & electricity to heat the dining room or drive to Wal-Mart. Well, at least, they have a job or 2 or 3 ...

The bearer of the bad tidings was not The Grinch but DOL, which says what consumers pay for key goods & services “rose 6.8% in November from the same month a year ago. Concluded the WSJ: “That was the fastest pace since 1982 & the sixth straight month in which inflation topped 5%”, that is, after the Biden Administration declared war on fossil fuel, then, launched a “get vaccinated or get fired” program via an agency “workaround” (which has been blocked so far on constitutional grounds by courts across the nation).

Further worrisome, the WSJ also noted, “the November prices trend came before the emergence of the Omicron variant of Covid-19, which poses a new threat from a pandemic that is well into its second year.” On the other hand, despite the “frightening inflation numbers”, said Allen Sinai, chief global economist for Decision Economics, Inc., the economy is still “booming … we have tremendous spending by consumers. A lot of people are getting hired. Demand is huge. Monetary policy remains very easy.” Translated: Inflation may continue to boom, too.

Davd Soul