Prices

The ‘affordability’ delusion

During last week’s excruciating Oval Office make-nice between an insultingly buddy-buddy American President and a fraudulently obsequious New York City mayor-elect, the contest was over which pol was the more patronizing. At one point Trump graciously granted his petitioner permission to call him a "fascist" while clearly implying the guy’s OTT campaign rhetoric had been embarrassing. Donald Trump sat regally on his throne, patting Zohran Mamdani’s arm while commending "Attaboy!" as if petting a golden retriever that had fetched a ball. For his part, Mamdani stood mutely by the Resolute desk with cartoonish humility, hands over crotch. This cowed performance of beta-male submission was meant to disguise who’d got a leg over whom.

Affordability

It’s the cost of living, stupid

Earlier this month, the Republicans lost their first set of elections after Donald Trump’s victory last year, proving once again that without Trump, the GOP is cooked. Because yes – it really is all about him. Are you a narcissist if the world actually does revolve around you? Or are you just right? The problem for the GOP is that they need Trump to win, but Trump loves watching them lose without him. OK, maybe he is a narcissist. What’s clear is that the 2024 election was not the final boss. It didn’t destroy wokeism. You have to picture the spider in The Lord of the Rings, Shelob, crawling back into her cave after being stabbed by Samwise. Is she injured? Yes. Dead? No. She will probably be back to kill you.

trump economy

The cruelty really is the point

Earlier this week, Politico ran a piece called “Inflation’s biting. Roe’s fraying. Dems are still trying to connect with voters.” The crux of the article is that while congressional Democrats have plans to counter rising inflation, they are having a hard time selling their command of the situation to voters. It’s no wonder. The star of the piece is Representative Katie Porter. Porter, a member of her party’s progressive wing, is portrayed as more aware of the impacts of inflation than her colleagues. The story describes an instance in which Porter had to put a package of bacon back on the shelf because, to her surprise, it was up to $9.99 per pound.

The government didn’t miss inflation, they ignored it

Federal Reserve Chairman Jerome Powell looked calm when he testified before the Senate Banking Committee in February 2021. He’d just been asked by the folksy Louisiana senator John Kennedy whether he had concerns about the dollar supply being the highest it had been since 1946. “Right now, I would say the growth of M2, which is quite substantial, doesn't really have important implications for the economic outlook,” Powell stated. “M2 was removed some years ago from the standard list of leading indicators, and just that classic relationship between monetary aggregates and economic growth in the size of the economy, it just no longer holds. We've had big growth of monetary aggregates at various times without inflation, so something we have to unlearn, I guess.

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