More Fuel on the Inflation Fire

Macro Perspectives

Just as the media and global central bankers are trying to keep up the charade that they will execute the unpopular and painful policies necessary to bring inflation down, the White House is yet again pouring more fuel on the inflation fire.

Joe Biden announced school loan forgiveness, which would fully cancel school loans for over 20 million people (45% of federal school loan holders);

• student loans of up to $20,000 for Pell Grant recipients.

• $10,000 for other people making up to $125,000 a year.

Total expected cost of Biden’s debt cancellation is estimated at $300 billion - approximately equal to all of the tax hikes in the Inflation Reduction Act, and to the total amount being spent on climate change and the energy transition.

Even the former top economic advisor in the Obama administration (and spinster of all-policies democrat) can't help himself but to call a spade a spade. 

Remember, it was less than a month ago that the Fed told us they had reached "neutral" on interest rates, at 600 basis point UNDER the rate of inflation.

That was all but an admission that they didn't have the tools to deal with 8.5% inflation. Still, in total disregard for the Fed's alleged inflation fight, it was later that SAME DAY that the democrat-led Congress kicked off what has become another fresh trillion-dollar spending binge.

And here we are again, with the White House fueling the inflation fire even more, dropping money in the pockets of tens of million Americans, via school debt cancellation.

Again, this is blatant inflationary policy. It's about devaluing the massive government debt load, by devaluing the money in your pocket - by design.

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