You might think with yesterday’s CPI up 8.3%, with a 30% jump in energy, and today’s PPI up 11%, with a 40% jump in energy, the Biden administration’s policy makers would support more oil and gas supplies. right? no. you are wrong.
Instead, the administration canceled one of the most prominent oil and gas sales pending before the Ministry of the Interior. Oh, and did I mention standard gasoline prices at the pump?
The Interior has halted oil potential at more than 1 million acres in Alaska’s Cook Inlet, along with two lease sales in the Gulf of Mexico. The Ministry of Interior cited a “lack of industry interest” as well as conflicting court rulings on the environmental impact.
Well that’s right. There is a lack of interest in leases, because the administration will almost certainly not grant permits to explore, produce or transfer new energy supplies. What’s the point of a lease if you can’t get a permit?
Of course, President Biden has made all of this very clear from day one, when he killed the Keystone XL pipeline and then ANWR and recently imposed new restrictions on environmental permits that will effectively shut down the infrastructure altogether.
So while the president might tell people that inflation is his number one priority, his policies to increase spending and shut down fossil fuels completely undermine his position. In another era, you could say that he speaks with a forked tongue. In other words, “false”.
As we know from Mr. Biden’s speech on Tuesday, he wants to spend more, regulate more and tax more. He wants the central planners in Washington to run the country’s economy with a tight fist. He has 100% confidence in the government and does not trust the private sector of free enterprise, also known as capitalism.
He says he’s a capitalist, but his actions point to what Newt Gingrich calls “big government socialism.” It fails on all counts. We are in the midst of an emergency inflation crisis, with the most widespread price hike in four decades. There is no stopping in these inflation figures, because there has been no change in government policies.
What you have here is a catastrophic breakdown of the radical progressive experiment. We shouldn’t be surprised. This great governmental socialist progressive government has failed anytime and anywhere. Even Europe has fallen back from what it was years ago.
Mr. Biden denies the inflation crisis and the failure of his progressive policies. Of course, he’s playing a blame game — Vladimir Putin, the pandemic, supply chains, the super-rich, greedy companies, price gouging, poultry producers (does he blame all this inflation on male prairie chickens colluding with each other? Just an idea), Senator Rick Scott and of course former President Donald Trump recently.
That’s what this “ultra-MAGA” stuff is all about, right? By the way, please enroll me in “Ultra-MAGA” – tax cuts, deregulation, energy independence, lower minority unemployment, declining poverty, orderly borders and no-invasion of Vladimir Putin.
Yesterday, in Chicago, Mr. Biden upped the ante on “The Great King MAGA”. In other words, the Biden blame game continues. It is not the failure of his radical progressive policies. It really is a failure of Donald Trump. truly? But Mr. Trump is not on the ballot.
Anyway, “MAGA King” sounds like the Broadway show, “The Lion King.” Nobody knows what Biden is talking about, and Virginia Governor Glenn Youngkin has shown that while Mr. Trump is not on the ballot, his successful policies still contrast sharply with Biden’s failures. The Blame Biden game and the distraction game don’t work and won’t work.
You know you’re in trouble when, as a left-wing Democrat, you’re slammed by a Washington Post op-ed page, which just wrote, “It’s wishful thinking that inflation will be much lower by Election Day. To show voters that he’s on top of the problem, Mr. Biden needs to That does more than blame someone else for the price hike.” Well, the Washington Post is right.
Biden must bury his progressiveness and the Fed must start taking money out of the economy. These policy changes will eventually curb inflation, but it won’t be easy.
Stock markets are now sending a recession signal. The S&P 500 is down 18.5% year-to-date. With nearly 10% inflation, that’s a real drop of about 30%. As of yesterday’s close, the jewel in the US crown, the IT sector, is down 24% year-to-date. Chip shares drop 29%; The Home Builders Index is down 36%; And retailers increased by 31%.
This is a disappointing stock market message. That could point to a painful stagflation and once again, blaming Donald Trump is not the answer for Biden and his progressive followers.
Some adults in the White House have to go into the Oval Office and tell the president that his policies have failed and that the country has completely lost faith in him. The only thing worse than a stock market drop is the steady decline in Biden’s polls.
Whoever this adult is, they have to be brutally honest with their boss. The new people, who have more market and business empathy and less government socialist blood, should be brought in on the mission of rescuing Biden.
Will this happen? At this point, I doubt it, but I have a personal idea. We welcome our new Chief of Staff, former Senator Joe Manchin. Save America, Kill Progressives.
This article is excerpted from Larry Kudlow’s opening comment on the May 12, 2022, edition of “Kudlow”.