The Biden administration and its allies use Russian President Vladimir Putin as the convenient excuse for economic failures. The most recent falsehood is that Russia’s invasion associated with Ukraine caused March’s 6. 5 percent year-over-year increase in the Consumer Price Index (CPI).
Prices had been surging long before Russian soldiers entered Ukraine. Furthermore, Putin did not stop exporting food and gas; it was the Biden administration and Congress that will imposed sanctions, making ALL OF US consumers suffer additional price increases. The blame for your economic effects lies using the US government, not The ussr.
The United States provides for years been meddling in Ukraine’s affairs with the specific goal of moving US and NATO military allows ever closer to Russia. One of the most notorious example was the 2014 US-orchestrated coup that overthrew Ukraine’s democratically elected govt.
Russia has a legitimate grievance over the US supporting expanding NATO to incorporate Ukraine, despite the US having promised not to support growing NATO beyond Germany’s borders during negotiations over the right way to end the Cold War. Foreign policy experts, which includes George Kennan, the architect of the Cold war “ containment” strategy, warned that Russia would respond adversely to NATO expansion near Russia.
Prior to the Ukraine conflict, Biden and his fellow Democrats blamed price increases on “ greedy” corporations, going so far as to claim that increasing antitrust prosecutions would somehow bring down costs. Then Putin became the brand new excuse.
The main culprit behind rising costs is neither Putin neither “ greedy” corporations. Federal government Reserve Chairman Jerome Powell and his colleagues are to blame. Starting in September 2019, when the Fed panicked over a spike in interest rates within the “ repurchasing” market that banks use to give one another overnight loans, the Given has engaged in an unparalleled spree of money creation. The particular Fed further stepped upward its easy money plus low, and even zero, rate of interest policies in response to the lockdowns. Increasing prices are the immediate result of the Fed’s insurance policies.
The Fed is planning to try to tame prices by increasing rates of interest and reducing its stability sheet. This will likely tip the economy into a recession. Improving interest rates will also cause the particular federal government’s debt payments to increase, which is a reason the Fed will not increase prices to anywhere near where they would be in a free market.
The best-case scenario may be a return to 70s-style “ stagflation. ” The particular worst-case scenario is that the Fed’s failure to rein in inflation, fueled by Congress’s failure to stop spending, combined with the continued resentment over the US’s hyper-interventionist foreign policy, will cause a rejection of the dollar’s reserve currency status plus lead to a major financial crisis. This type of crisis could result in widespread poverty, as well as violence, crackdowns on liberties, and even the increase of a totalitarian government.
The crisis can still be avoided, but only if Congress becomes serious about cutting spending, starting with the army industrial complex. Congress should also start to reform monetary policy by auditing the Given, legalizing alternative currencies, plus exempting precious metals and cryptocurrencies from all capital gains taxes. The welfare-warfare-fiat money system will end. What exactly is not known is when it can end and whether it will be replaced by an even more authoritarian government or by a return to limited, constitutional government.
This article first appeared at RonPaulInstitute. org .