Frankly, I’m happy that Joe Biden is our president for the next two years. A lot of bad things are likely to happen with the economy and Biden and the Dems will get the blame. That should ensure Democrat losses in the 2024 elections. So far, the outbreak of inflation and the Federal Reserve’s attempts to quell it are quite remindful of what happened in 1980. However, that’s likely to change. Going forward, inflation will be more intractable, and a series of nasty credit events will turn the public against the administration. Higher unemployment levels and a moribund economy will convince voters that Joe and the Dems are clueless. It’s hardly fair to pin everything that goes wrong in the world on whoever is in office, but that’s what we do in this country.
Furthermore, things could become a lot worse than anybody thinks. We could see the onset of a depression and worsening inflation to go with it. A recent article in the Wall Street Journal disclosed that the Japanese are no longer buying our bonds and have begun to sell them. When our biggest creditors won’t buy our debt, who will? Without bond buyers, we will have to print the money to pay the bills. The long-term ramifications of such a policy make you shudder. A lot has been written about the threat to the dollar’s role as the world’s reserve currency. As unlikely as that event seems, our huge debt and reckless spending are endangering our prosperity. Unfortunately, the current administration has little understanding of what could happen and why.