BREAKING: Biden Raises Taxes on Retirees 12%
LOS ANGELES, Calif. — As inflation grips the U.S. many Americans are feeling the pinch.
Prices of numerous consumer goods have exploded in just a few weeks. Gasoline is up 56 percent. Beef is up 2.3 percent in just one month. And used car prices are up 30 percent.
“When serious inflation hits, it hits everyone,” says Ben Stein.
While you might be able to avoid buying a used car, it’s difficult to avoid buying gas or electricity for your car.
Many Americans are now wondering, “Just how bad is it?”
It’s bad. Really bad.
Overall inflation is up 12 percent in a year — the largest increase since 2008 — and the fastest rate of increase since 1982.
If your income hasn’t increased at least 12 percent in the last 12 months, then your money just doesn’t go as far today as it did last year. In other words, you’re going backwards. You’re losing purchasing power.
Wolf Richter (a noted wall street investor) argues that inflation is actually higher than reported. Worse, this lost purchasing power is NOT coming back. Richter writes:
URGENT INFLATION ALERT:
“The actual loss of purchasing power of the consumer dollar is far worse than even these very ugly inflation data […] And this loss of purchasing power is permanent.”
Unfortunately, inflation will continue for at least the next 2 years unless something unheard of happens. Biden’s trillions in stimulus money continues to flood the economy, making inflation worse. And the Fed doesn’t plan to raise interest rates until 2023 at the earliest.
Between now and then, inflation will continue to run HOT — possibly even hotter than right now. Which means higher prices at the pump, the grocery store, the dealership — anywhere you normally buy goods and services.