Inflation: Why Does it Hurt So Good for Democrats

And Feels so bad for the Rest of Us.

Part 2

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FYI – If you didn’t read part 1 STOP, and click here. It’s important to crawl before you run, so please, indulge me.

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You already understand what I mean when I say that we pay inflation on past inflation. Now it’s time to dive into the way they fudge the inflation numbers using a tool called the CPI. The Biden Administration knows that most Americans have no clue how the inflation number is derived. Don’t worry. I’m no expert either, but I’ve done enough research to satisfy my curiosity. Why so curious? Well, I’ve heard that inflation numbers thirty years ago were calculated differently than they are now. I wanted to know why.

Inflation is calculated based on a number called the Consumer Price Index (CPI). Years ago, they calculated the CPI by taking a sample grocery bag of items deemed to be basic consumables for the average American. Then, they calculated the cost. They also came up with criteria for basic housing, transportation, and the list goes on. Let’s stick with the grocery bag sample for this illustration.

The next year they looked at the exact same bag of groceries and determined the current cost. The difference in price was the CPI, and they used that CPI to determine the inflation rate. Every once in a while the CPI would go down, which means low or negative inflation, but most of the time, it went up.

So how does someone fiddle around with something as straightforward and basic as the cost of groceries? Well, it works like this. The Biden Administration Muckety-Mucks said wait a minute. We aren’t taking into account consumer spending trends. If the price of Swiss Cheese goes up, shoppers start buying Provolone cheese which is cheaper. We need to adjust for that. We also need to adjust for Rye Bread to White Bread and so on, and so forth.

Let’s Go Brandon with an accent.

On the surface it makes sense, right?

Yeah, just like every other democrat lie. It sounds reasonable until you dive into the specifics.

Let’s stick with bread. For years you purchased Rye Bread to make the sandwiches you and your family enjoy for lunch. In the past, you paid $2 a loaf. Now it’s $5 a loaf. So you tell your kids, and yourself, White Bread is just as good. But is it? And what happens when White Bread becomes too expensive? Are Crackers just as good? Imagine the look on our kid’s faces when you give them a sandwich made with two crackers instead of two slices of bread. And it doesn’t stop there.

When calculating the current CPI, they do the same tomfoolery for just about everything, including housing costs. They completely ignore homeowners and the costs of buying, financing, and maintaining a home in good livable condition. Instead, they use average rents to set the standard cost of housing, and they justify it by claiming your home isn’t an expense, it’s an investment.

And the Muckety-Mucks aren’t through; they’re still manipulating the numbers even today. This is why the Biden Administration and the fake news media can tell you to your face, that you’re only experiencing an 8.2% inflation rate when in reality, it’s an inflation rate of 18-20%.

But there’s good news ahead. Mark my words. When Donald J. Trump ascends to his rightful place in the Whitehouse, you can bet your bottom dollar that the CPI, along with the inflation rate, employment rate, and everything else, will all be recalculated the right way (meaning applicable to those on the right). Then, the democrats, supported by the fake media, will complain for months about how the inflation rate spontaneously jumped to double digits as soon as Joe (LGB) Biden left office.

You heard it here first.

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Democrats also feel the pain, but they feel it differently. To them, it’s almost masochistic in nature because it’s the pain of change in America; from a capitalist abomination full of deplorable individualists providing for themselves; to a Socialist Utopia full of mind-numbed robots willing to be subjugated for mere sustenance (otherwise known as Communism).

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PS – For all you independent voters out there: We stand at the precipice, vote your mind, not your heart or it’ll cost you more than money.

For a more detailed discussion of what I just told you, see: Why Has the Inflation Calculation Changed Over Time? – DNyuz  It’s not overly biased, but be careful just the same. The government Muckety-Mucks substitute the word consumption for the concept of same standards of living. The bias is subtle, but it’s there.

Inflation: Why Does it Hurt So Good for Democrats

And Feels so bad for the Rest of Us.

Part 1

The Good Ole Days (1977-1981), then and today.

If the years 1977-1981, seem like a random selection to you when referencing the here and now, you’re simply too young to remember. 77-81 were the Jimmy Carter years and inflation reached a high of 14.8% with a Consumer Price Index (CPI) of 80.1. In 1980, inflation stayed over 14% for more than four consecutive months, with an average annual rate of 13.5%. These are the numbers released by the Bureau of Labor Statistics (BLS), so they must be true. 1980 CPI and Inflation Rate for the United States | CPI Inflation Calculator (2022 Updated Monthly)

First, let me apologize for throwing out a bunch of numbers right from the start. Don’t worry. This is Davyd’s blog, and you know I’m not going to bore you with statistical analysis, fudged numbers, and theoretical assumptions designed to cloud your ability to understand the truth. I live in the real world where working is a means of survival, not a euphemism for getting filthy rich off the labor of others through taxation i.e., The Big Guy (Let’s Go Brandon).

According to Hunter’s laptop, you sure did.

So, why does the Biden Administration tell us inflation is only 8.2%, but the same bag of groceries I bought last year costs 10% more this year; and closer to 20% more than the year before that? For those in Rio Linda, that’s two years ago.

Here’s a simple way to think of it. It’s kind of like compound interest. When you borrow money, you can pay straight interest; $10 for 1 year at 10% is $11. Or you can pay compound interest, which is interest on the principal of $10, plus interest on interest accrued over time. Simply put, you’re paying interest on principal and interest.

As I understand it, inflation is somewhat similar. If you buy a loaf of bread and it costs $1, one year later at 10% annual inflation, that same loaf of bread will cost $1.10. But if inflation stays at 10%, the next year the same loaf of bread costs $1.21. In other words, to get the same loaf of bread from two years ago, we now have to pay the $1 base cost, plus 10% for last year’s inflation, plus 10% on the whole thing for this year’s inflation. And that’s why we’re paying inflation on past inflation.

Now take that cost increase and apply it across the board to everything you buy and yeah, this is what the cost of living in Biden’s America feels like. Keep in mind, I didn’t even mention the fact that yesteryear’s loaf of bread was 20 ounces, and today’s loaf is only 16.

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Democrats also feel the pain, but they feel it differently. To them, it’s almost masochistic in nature because it’s the pain of change in America; from a capitalist abomination full of deplorable individualists providing for themselves; to a socialist utopia full of mind-numbed robots willing to be subjugated for mere sustenance (otherwise known as Communism).

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But wait Davyd, you’ve told us why the inflation rate feels like 20%, but you haven’t told us why the Biden Administration says it’s only 8.2%. Also, you mentioned the Consumer Price Index (CPI). What’s that got to do with this horror story?

Well, as bad as it already is, the truth is about to get even worse. The CPI and how it’s manipulated, is a big reason why the Biden Administration can look at 18% inflation and call it 8.2%. By the way, 8.2% inflation is really bad. Don’t just shake your head and get used to the new normal. It’s not normal; it’s the free market screaming for help.

But before we dive into some more numbers, for now, just let the basics settle in and keep reminding yourself that we are paying inflation on past inflation.  Then, when you’re ready for the horrific truth, check out my next post. I promise the numbers will be bus driver simple to understand. And when it’s over, you’ll know why the Biden administration can claim 8.2% inflation when in reality, it feels like 18.2% or higher.

PS – They fudge the numbers on inflation, employment, illegal immigration, elections, national debt, and most everything else including national security. This post is only focusing on inflation.

Holy-Sh … Crap! When you start to list it all, it’s truly amazing how much damage the democrats caused in less than two years.

Biden’s Inflation Reduction Act

Has Biden done anything right since he took office?

These are the facts as I, a lowly bus driver, understand them. Government spending is by nature, inflationary. That means the money supply increases, so there’s too much money chasing too few goods (prices go up). If that increase is matched by an increase in wages, the net effect is zero. But inflation is over 9% while wages have only gone up about 2.5%. That’s a 6.5% deficit that all of us absorb as a tax increase on disposable income. Simply put, you can buy 6.5% less stuff today than you could a year ago, even though you got a raise, and keep in mind, not everyone did.

For those too young to remember the Carter years, when inflation outpaces wages, demand falls, unemployment increases, and the economy shrinks. When it lasts more than two months, you go into recession. Jimmy Carter tried to spend his way out of recession; it didn’t work for him, and it won’t work for Joe Biden. When Biden calls his plan the Inflation Reduction Act, he’s putting lipstick on a pig.

Biden’s Inflation Reduction Act _oink, oink, oink

Find your congress members here: KEY VOTE: “NO” ON THE “INFLATION… | Heritage Action For America

By the way, don’t let your liberal friends tell you that this thing will reduce prescription drug costs by requiring price negotiation. If you read the bill, you’ll find that it requires offers and counteroffers based on established government price limits.

So a drug manufacturer submits a bid, the government counters, and this is supposed to be the negotiation process at work. The problem lies in the details. Under Biden’s Inflation Reduction Act, under no circumstances can the government accept a price above a predetermined limit.

Call me naïve, but I don’t think that’s how a negotiation works, it’s how extortion works. Ultimately, drug supplies will be limited, and if drug companies can’t earn a profit on what they sell to the government, they’ll just pass the cost on to their other customers, you and me.

PS – Contact your congressmen (women) by any means necessary, and let them know that you know, this is a bad deal.

A Rose

by any other name would smell as sweet.

Inflation by any other name would still tax as harsh.

To be honest with you, I’ve long since given up keeping track of the current democrat terminology for anything. As far as I’m concerned, inflation is inflation, recession is recession, and Shakespeare had it right.

A Rose, Inflation, Recession, the facts remain, regardless of the name.

Democrats can redefine anything, as anything, but to what end? Sadly, it does nothing to change the truth. If it were only that easy. Don’t want a recession? Just say that the economy is the strongest it’s ever been. Don’t want a disastrous border? Just say it’s the most secure it’s ever been.

Biden’s problem is that people have to live their lives in reality. The increased employment numbers Biden takes credit for are jobs that existed before Covid. They were lost during the outbreak and are now being replaced. There is no real growth to offset Biden-inflation.

And don’t try to tell me that the border is secure. Thanks to Gov. Abbott, New York progressives and the Washington DC Woke, are beginning to see what the Border States have been dealing with for nearly two years. And apparently, they don’t like it too much.

abbott_migrants-tm6rr8

The real reason the democrats keep trying to redefine things is that they have no answers. If you don’t know the answer to a question, change the question. If you don’t have the answer to a problem, change the problem.

Last week I caught the tail end of a news segment featuring Brianna Lyman. She was asked to explain why she thinks the left works so hard at redefining things like inflation and recession. She was only given ten seconds to respond. She needed less than five. I paraphrase, but I’m close, “They’re really worried about it. Otherwise, why would they work so hard at redefining it?” The remaining seconds were for audience contemplation.

The-Daily-Callers-Brianna-Lyman-Slams-Democrat-Governor-On-Newsmax-e1658518737764

Brianna is the one on the right.

PS – With young people like Brianna (on the right, not the left ;-), I feel confident about the future of our republic.

Bidenflation

What is it and where did it come from?

Uncle Joe

https://www.ldavydpollack.com/audio-blog-posts

I just saw a video on Twitter. A very pretty twenty-something is finally realizing what taxation is all about.

First, she talks about how she goes to work and earns five hundred dollars and how every dollar she earns is taxed. Then, she realizes that everything she buys with the dollars she has leftover— is taxed. This would include the things she needs to buy in order to go to work.

As she contemplates further, she realizes that the people she buys things from also pay taxes. In fact, they’re paying taxes on money she already paid taxes on. And the cycle continues indefinitely until finally, she has a eureka moment.

Let her tell you in her own words:

You love to see it.pic.twitter.com/moX3Xx1lVk

— 🌺 𝓢𝔀𝓮𝓮𝓽𝓓𝓮𝓮 🌺 (@sweetdeesez) January 17, 2022

To sum it all up, what she’s realizing, but can’t quite find the words to express (this is my area of expertise) is that a dollar equaling one-hundred pennies, doesn’t disappear, but its value does. We call this inflation. For those people of this young lady’s generation, it is Bidenflation.

PS – I tried to leave a reply, but it seems to have been absorbed into the Twitter void of conservative thought. I can see it on my page but nowhere else. It went something like this:

Eureka!!!! Who says young people don’t understand taxation? You can’t even call it double or triple taxation. It’s infinite taxation.

It’s Bidenflation …..

50 Million Barrels

What does that really mean?

There’s a RBDBE …*

Last week Joe Biden announced that he was going to release 50 million barrels of oil from America’s SPR (Strategic Petroleum Reserve) to help rein in gas and heating oil prices for Thanksgiving.

Joe, is that your I’ve got gas face, or I just made another boom-boom face?

YAY! —Joe’s actually doing something.

Okay, all joking aside. I went to work the next morning thinking that something didn’t make sense about the SPR release, but … Fortunately, I had ten hours of blissful bus driving to contemplate the ramifications of Joe’s wondrous deed.

One of the first things to cross my layperson’s mind was a question. With the price of oil skyrocketing, why would a president put our collective security at risk by squandering the SPR? We need that oil for real emergencies, not those manufactured by Biden’s ineptitude.

Then, it occurred to me that the reason he did it was simple. It’s easy. It’s also meaningless. While 50 million barrels sounds like a lot of oil to you and me, those in-the-know, know that America burns through 50 million barrels every two days, give or take 12 hours depending on things like holidays and weather conditions. When I say those in-the-know, that should include the Biden administration but obviously doesn’t.

So 50 million barrels is meaningless, and the proof is there for all to see. What’s the price of gas today? Hmmm? Biden doesn’t care whether you pay $4 or $5 a gallon at the pump. The important thing for him is being able to say that he did something. Besides, when no one is looking, the Biden administration will just buy back that 50 million barrels and Bob’s-Your-Uncle.

I promised an RBDBE, and here it is. It’s something that I haven’t heard anyone report on, so I’ll do my best to throw it out there myself.

Today, under Biden’s dysfunctional economy, the price of oil is just over $83 a barrel. Back in the summer of 2020, during the Trump economic success story, the price of oil bottomed out at just over $12 a barrel. Folks, I’m not making this up. You can fact-check it for yourself if you need to, but if you drive a car or buy just about anything, you know it’s true.

Under President Trump, we purchased oil for $12 a barrel times 50 million barrels =

$600 Million

Under Joe Biden, we purchase oil for $83 a barrel times 50 million barrels =

$4.15 Billion

Millions to Billions: Biden’s 50 Million Barrel SPR release is meaningless from every angle except one, more inflation.

PS – At this point, we have to ask ourselves an increasingly vital question. Is the Biden administration entirely inept, or is it entirely adept … at being un-American?

*If this is your first time, RBDBE is a Random Bus Driver Brain Eruption.

The Art of Not Saying (II)

What they want you to think

I just so happened to be looking at an old post I wrote back in October titled The Art of Not Saying when I came across this. Fauci said that the spread of covid wasn’t caused by immigrants. His exact words, “This is not driven by immigrants.”

Again he was referring to the spread of Covid-19, and he was absolutely right. Click on the link above to find out why. Don’t worry. It’s a quick read.

Why am I bringing this up again? I think it’s the same logic being used by the Biden administration when they say the Build Back Better/Hyper-Inflation Bill won’t cost a penny and will actually reduce inflation.

I had two RBDBE’s about this while driving last week, but they turned out to be duds. I never figured out the hook. How are they contorting the words so that it isn’t a lie? They had me stumped. So much so, that I started to worry because maybe, just maybe, there isn’t a hook.

If there isn’t a hook then, Whiskey Tango Foxtrot! Could it be true?

What do you think?

Would you believe any of them?

Where’s the Truth?

PS – Alas, while typing this post, I had another RBDBE, and this one didn’t fizzle. The answer is as terrible as it gets for democrats and the facts.

They simply don’t care that they have to lie about their ideology and policies. So they do. Whether it’s the border crisis, Americans left behind in Afghanistan, inflation, Hunter’s ties to the CCP, just lie about it until something else comes along to lie about.

Shoo….. Thank God for RBDBE’s.

PPS – Democrat Senators, are you smart enough to listen? Your Representative Brethren in the House did not.

Biden/Carter 2.0

That 70’s Show

A few days ago I was driving my bus by a gas station and the price on the sign caught my eye, $3.31/gallon*. It was one of those local non-affiliated stations with cheap gas and who-knows-what coming out of the pumps. Their price is consistently cheaper by five to ten cents so I was expecting something in the range of $3.21 based on the price at my station the day before. A few moments later things clicked and I had an RBDBE (random bus driver brain eruption).

I said to myself (because no one else was listening), “Damn, it feels like the Jimmy Carter years.”

Then, yesterday morning Maria Bartiromo had Sen. Ted Cruz on to discuss the Biden spending plans and their inflationary impact. I was snapped out of my morning fog when I heard him make the same Biden/Carter analogy. He began by referencing That 70’s Show because of the title, but then he enumerated all the reasons why it feels like Jimmy Carter 2.0.

He started with skyrocketing double-digit annual inflation. Then he continued with, gas lines, a middle-east crisis, middle-east hostages, America surrendering in Afghanistan, and then he made the point that there’s a cause and effect factor. When you push bad policy and spend trillions upon trillions of dollars, you get Jimmy Carter. It all amounts to a weak America, a world in chaos (the way the communists like it), and massive inflation. I’d add to that, massive Stagflation.

For those of you too young to remember the 70’s, massive inflation is supposed to accompany wage and salary increases. But as the inflationary condition metastasizes, wages and salaries stop rising while prices continue to soar. In the end, everything costs more each time you try to buy it, and you never have enough money to pay for it. So you’re forced to do with less, a lot less.

Today, Joe Biden is going to sign the Infras—I mean the Inflation Bill part -1 into law. Stagflation is on the way. It’s the Jimmy Carter 70’s Show all over again. Mark my words.

What’s worse, the Biden administration is doing this with intention. They want you to pay more for everything including gas, heating fuel, and electricity. It’s part of their climate change plan. All this massive spending is intended to expand government control through inflation. If you have less economic power, you’re more dependent on the government and easier to control. The proof is in the pudding. Watch Jen Psaki smile, tell the truth, and then lie about it.

Jen Psaki says “the rise in gas prices over the long term makes an even stronger case for doubling down on" radical green energy policies. pic.twitter.com/8WYpqbFLBE

— RNC Research (@RNCResearch) November 12, 2021

That 70’s Show with Creepy Joe.

*I know there are those who see the $3.31 price for gas and wonder why I’m complaining. They pay $5-$6.  These are primarily people in the Northeast and the entire pacific coast.

Why do I complain? Perspective (I should be paying about $1.75). Why are you paying $5-$6? It’s your own fault. Elections have consequences. You have governors like Cuomo (resigned) and Newsom (recall). My governor is DeSantis.