Inflation problems easily traced to silly monetary, fiscal and climate policies

It will get a lot worse before it gets any better

Households are having trouble making ends meet in America. Interest payments and gasoline alone consume a sizeable bite of household income.

Those problems aren’t new, but they are now increasing rapidly. Why? Because of a debt-financed spending binge by the Biden administration and so-called “climate” policies limiting production of fossil fuels worldwide. Fiscal policy is out of control and federal debt is now over 100% of GDP and getting worse. Monetary policy, stupid by any measure, drove interest rates to near zero for years fueling rising asset prices including homes, and those deluded into thinking money would be “free” for the 30-years of their mortgage debts are now seeing mortgages - once at close to 2% - approaching 8% interest rates. People with low rate mortgages will hang on to their homes, reducing supply for those needing homes, and driving rental prices north as nosebleed interest rates make ownership more costly than renting.

United States has no monopoly on stupidity in government - Canada’s Trudeau government makes the U.S. look fiscally responsible by comparison, with Canadian national debt more than doubling since Trudeau was elected in 2015 and Canadian immigration of 500,000 persons per year equivalent to about 5 million immigrants in United States which, despite open borders, is only seeing about half that number of new entrants. The U.S. southern border gets a lot of ink for letting thousands of migrant cross every day, then housing them, paying them, and providing free health care (who would’t come for all that?) but Canada’s immigration flood is much worse by comparison although the immigrants to Canada are primarly not only legally entering our country but also quite welcomed by Canadians. If only our government considered the housing infrastructure needed to support them in advance of opening the floodgates?

We are now faced with persistent inflation, rising energy costs, higher interest rates, higher rents, and higher taxes including a proposed tripling of the useless “carbon tax”. This will end only when voters throw Trudeau to the curb and elect a government that will increase oil & gas output to balance energy markets and give some relief to energy prices, stop squandering federal money on giveaways to EV battery manufacturers, stop throwing money away in foreign aid, reduce the federal headcount by hundreds of thousands of employees, repeal the carbon tax and eliminate corporate income taxes and lower the HST.