Biden’s “Inflation Bomb” is “Driving the Economy Into the Ground,” Senators Warn

[Manuel Tavares]

Biden’s “Inflation Bomb” is “Driving the Economy Into the Ground,” Senators Warn
By John Ransom
https://rayviolet.blogspot.com/2022/06/bidens-inflation-bomb-is-driving.html

Conservative politicians are blaming Joe Biden for the current inflationary crisis, which they are calling a “bomb” that is “driving the economy into the ground.”

Increased federal spending, they say, has resulted in growth that is unable to support the burden of servicing the national debt.

“I’ve been warning Americans about Biden’s Inflation Bomb spending agenda from the beginning, and now every American is paying for it,” said Sen. Mike Braun (R-Ind.) in a statement to The Epoch Times.

“In Fiscal Year 2021 we threw away $562 billion on nothing but debt service – that’s 72% of what we spent on defense that year.”

Should stagflation result in increased interest rates – stagflation is high inflation combined with weak economic growth, which is essentially what we are now seeing – then the government of the corporate United States will end up facing a full-blown fiscal crisis.

“Given the comparative certainty of these large federal budget deficits – which will make budget interest costs extraordinarily sensitive to even small interest-rate changes – it would be reckless to commit to decades of permanent new debt in the hope that the interest rate paid on this debt never again reaches 4% or 5%,” says Brian Riedl, an economist at the Manhattan Institute think tank.+++
https://rayviolet.blogspot.com/2022/06/bidens-inflation-bomb-is-driving.html