A new voice added his blazing warning about the future of America’s economy as the Biden administration began a retreat from its predictions that inflation was a tiny blip on the radar of happiness.
Inflation has been hitting Americans since the summer, with prices rising on a wide range of goods.
Twitter CEO Jack Dorsey offered his dire two cents on Friday.
“Hyperinflation is going to change everything. It’s happening,” he wrote to his 6 million Twitter followers.
“It will happen in the US soon, and so the world,” he also wrote.
Hyperinflation is going to change everything. It’s happening.
— jack⚡️ (@jack) October 23, 2021
It will happen in the US soon, and so the world.
— jack⚡️ (@jack) October 23, 2021
CNBC defined hyperinflation as “a condition of rapidly rising prices that can ruin currencies and bring down whole economies.”
Hyperinflation has often used in modern discussions in connection with Venezuela.
A 2019 report from CNBC crystallized the impact of hyperinflation on that nation.
It said that at that time, Venezuela’s hyperinflation rate was 10 million percent, with hopes of declining below 1 million percent. The report said that in six years, the cumulative decline of the country’s economy was 65 percent.
On Friday, Federal Reserve Chairman Jerome Powell stopped using the word “transitory” to describe inflation.
He said inflation pressures would likely last longer than originally predicted, even stating they may move into 2020, according to Fox Business.
By creating many trillions of new dollars out-of-thin-air, The Fed set in motion an economic disaster.
The warnings are over. Inflation is now here.
Every excuse will be offered up as “the reason” for economic pain.
Don’t be deceived. The unconstitutional Fed is the reason.
— Ron Paul (@RonPaul) October 23, 2021
Other experts are blunt.
Does Washington need to stop spending now?
“[T]here is a lot more inflation on the horizon,” said Ian Lyngen, an analyst at BMO Capital Markets, according to the Financial Times.
The publication reported that it had seen a letter from hedge fund manager David Einhorn’s Greenlight Capital that Powell “hasn’t lifted a finger to fight inflation,” adding “inflation is here and it appears poised to worsen.”
Just a year ago, we were on the cusp of being completely energy independent. Now, we are more dependent on others than we’ve ever been, for everything. We now have supply shortages, rising inflation, civil unrest and unsafe communities. This is not the American way. pic.twitter.com/bq1ZY9qREy
— Dr. Rich McCormick for Congress (@RichforGA) October 21, 2021
In a commentary headlined “Inflation Is the Mother of Big Political Change” in the Wall Street Journal, Holman Jenkins Jr. wrote that “Inflation is like Covid: If it gets loose, it will dominate our politics.”
He noted that government spending could be a major factor in how inflation impacts the nation.
“We may discover other vulnerabilities but two gaping ones weren’t part of the story in the 1970s. In 1977 federal debt was 34% of GDP; today it’s 125%. And the share of Americans who’ve experienced direct government aid has quadrupled. It now comprises more than 50% of the population, and that’s before our vast pandemic spending and Joe Biden’s welfare ambitions,” he wrote.
“Which means a lot could go kerblooey and fast. Rising interest rates could double or triple today’s $400 billion interest bill on the national debt. Overnight, this item could rival Social Security and Medicare as the biggest single budget outlay,” he wrote
With an eye on the spending packages before Congress, he added, “To the upwelling of voter aggravation, add Congress’s likely targeting of indirect benefits that effectively put almost 100% of Americans on the dole.”