Is it JustinFlation or BidenFlation?

Or are they working together to destroy the North American economies?

The U.S. Producer Price Index (PPI) hit 11.3% this week, making into into double digits. The PPI is perhaps the broadest indicator of inflation, and follows a Consumer Price Index print of 9.1% earlier this week as reported by Forbes Magazine.

Canadian inflation is not far behind with the May print at 7.7% and an almost panic-stricken Central bank triggering a 1 percentage point increase in the key bank rate.

It is amazing just how much Biden and Trudeau are in denial about the outlook for inflation and how little central banks are willing to do to try and stem this destructive force. Despite rapid increases in bank rates by the Fed and the Bank of Canada, these rates are far below the rate of inflation and so-called “experts” pretend they are approaching a “neutral rate”. There is nothing neutral about being able to borrow money at 4.7% (Canada’s new prime rate) when you can pay back the loan with money losing value at a 7.7% rate. Unless and until rates become punitive rather than an incentive to be in debt, inflation will keep rising.

The core problem causing inflation is a global shortage of fossil fuels. It is not the war in Ukraine, as Joe Biden likes to pretend; it is not “greedy corporations” as Elizabeth Warren likes to rant; and, it is not rapacious owners of gas stations “gouging” customers at the gas pump. It is the inevitable outcome of years of inane policies suppressing oil & gas development while Biden and Trudeau give virtue-signaling speeches about “saving the planet” from a non-existent “climate crisis”. CO2 is harmless. Washington and Ottawa are the real dangers to our country, our economy, our livelihoods and our personal freedoms, and will remain so until these left-wing ideologues are booted out of office and replaced by leaders who can count.

The most visible indicator of inflation in United States is the price of gasoline. To see that in perspective, consider how much gasoline inflation has added to the typical family’s cost of living - an increase of $2,200 in just one year.

Source: NY Post
Canadians take it on the chin compared to the United States, with gasoline now averaging CAD$2 per litre, the equivalent of CAD$8 per American gallon or about US$6.00 per American gallon. Canada’s average household income is materially less than that enjoyed by Americans, so the pinch is tighter. The Canadian fuel price includes a senseless “carbon tax” that does nothing for the environment despite the left-wing rhetoric coming out of Ottawa, but does hit Canadians in the pocketbook.

The combination of higher gasoline prices, higher food prices and higher mortgage payments - all contributed by Justin Trudeau and his band of incompetent fools in Cabinet (not all of them are fools or imcompetent. Anita Anand, for example, is impressive and Crystia Freeland is brilliant if misguided) are hurting ordinary Canadians severely with worse to come as the rate of inflation accelerates and outpaces wage gains.

The next round of elections can’t come to soon for me.