The US inflation rate continues to burn and suffocate the American pocketbook relentlessly.
An Endless Spiral Into the Abyss
The cumulative inflation rate from 2020 to 2023 averaged out at 16.42%, in addition to the yearly inflammatory rate of 5.2%.
According to the US Bureau of Labor Statistics, the current rate sits at 4.9%. Yet, no political economist to executives at the Federal Reserve (including Janet Yellen) seems concerned about the overproduction of the American dollar.
The American consumer feels the brunt of inflation. The surge in the lack of value invested in the dollar hits every market within the economy from cars, food, housing, and insurance.
Americans are suffering under the weight of inflation and the Biden Administration is trying to make their lives even more expensive.@RepPatFallon opens hearing on the Biden Administration’s regulatory assault on gas stoves by pointing out its continued attempts to… pic.twitter.com/956J87CGQJ
— Oversight Committee (@GOPoversight) May 24, 2023
59% of forecasters for the National Association for Business Economics predicted inflation will remain consistent at 2% year-over-year, not declining until after 2025 or later to reach the Fed’s target level.
Hidden Costs
The American housing market has been throwing in a cyclone. Interest rates are now above 7%, resulting in a lack of new properties being available on the market, due to its treacherous conditions.
Another disaster looming for the housing market is the threat of the US defaulting on its national debt. Home buying costs could surge by 22%, given the absence of funds to pay off the existing deficit.
Further, it does set well that the total household debt is now $17.05 trillion. New Cars, an icon of the American Dream, are more distant to the consumer. Many Americans are opting to keep their vehicles longer.
Biden Treasury Secretary Janet Yellen — who famously spent months insisting inflation was "temporary" and "transitory" — says she "take[s] pride in the credibility of the forecasts that we make" pic.twitter.com/56L7EIxq7o
— RNC Research (@RNCResearch) May 21, 2023
Interest rates on new cars jumped to 8.95% from 5.66% a year ago. While used cars sit at 11.3% higher loans, motorists are falling behind on payments…with nearly 60% being late to submit their dues in January 2023.
Credit Debt reached $986 billion, according to the Federal Reserve Bank of New York. Retirement also found itself under fire with Americans seeking to withdraw their funds. Likewise, 401k has seen a 24% increase in total liquidation.
Treasury Secretary Yellen believes the only way out is to raise the debt ceiling, prolonging the drawn-out economic meltdown.
This article appeared in The Political Globe and has been published here with permission.
