$5200. That’s how much money we all need to “add to our budget” a year to make up for the inflation, according to Bloomberg economists. About $2,200 of that inflation tax will come from pricier food and energy, they added. And that, ladies and gentlemen, boils down to an extra $433 per month on the same goods and services as last year. So you better stop being poor immediately!
As you can suspect, the headline went viral on social media and in no time, and sarcastic reactions flooded Twitter with comments like “Should that come out of my caviar budget, or should I downsize my yacht?” and ” Should I make the third home a rental property?”
Meanwhile, another set of news broke that corporations reported record profits, making 2021 their best year since 1950…
Twitter: the opiate of the masses.
I appreciate the need for humor in tough times, but we need to realize that there are people in high places who are making this happen to us. They give us a war in Ukraine to distract us so we do not notice their hands in our pockets!
Luckily my parents taught me to ALWAYS have reserves, but I’m clearly a minority these days.
Quick! Along with gas and oil reserves, have the gumment release the emergency cash reserves to go into every bank account in ‘Murica!
Just go buy a $55,000 electric vehicle. Solved.
Grifter R Us, What does Putin attacking and murdering civilians in an independent country have to do with inflation or the complete unawareness of the 1%ers? Let me answer: it’s the “all for me and too bad for you attitude”.
Hey Bob, I am really glad you asked!
First, the Ukraine war is not all about Putin. I am not sure if you were aware that the Ukraine has been in a state of civil war since 2014, where the Kiev government killed between 14-16000 of its own citizens in the Donbass region. Moreover, the Ukrainians shut off the water to the Crimean peninsula after the Crimeans held the referendum to secede and join Russia (not to mention the fact that the Russians have had an important naval base in Sovestopol since 1783 and were never gonna let that go). War is a terrible business, but in reality, the Russians have been much more restrained than the nation-breaking “shock and awe” waged by NATO/USA and their proxies in Iraq, Yemen, Afghanistan and Syria. The gas pipelines and grain fields have been left pretty much untouched. Yes, unfortunately they smashed up Mariupol getting at the Azov Battalion holed up there, but urban warfare is ugly no matter who does it (Kandahar, Fallujah anyone”?) A diplomatic/political solution will eventually be reached. That is the only way it will end. I really hope that it happens sooner than later, for the sake of Ukraine, Russia and Europe.
On to your main question:
It has lots to do with the inflation:
1) Rise in energy prices is due almost entirely to the war. Big Petrol has used this to gouge consumers in a big way. Europe will be wrecked by this (maybe this was the plan?) Also, USA frackers are having multiple orgasms over the possibility of supplying a floundering Europe with gas..instead of the Russians! Forget the fact that the LNG transport fleet is not big enough to do this (yet). Big money to be made!
2) Metals and other raw materials – Russia is a HUGE supplier of these. USA, Canada and Australia are licking their lips at picking up the lost production from the Russians. This will take years, tho’. Prices are rising as a result (more inflation..YAY!!)
3) Media-Military-Industrial-Intelligence complex are looking at huge market growth as a result of the war in Ukraine. Trillions are to be made – especially if they can drag the war out for another 20 years (like Afghanistan – Iraq). The great part is that no US troops are needed. All they need are willing Ukrainian proxies to duel with Russia’s proxies for the next two decades. Think how many weapons can be sold to the hapless Ukrainians! Classic US foreign policy tactic: “Let’s you and him fight” to the last Ukrainian! The western media (and the Russian media as well, for that matter) laps this up and sells it to us complete with its own theme music and flashy background! The 1% benefits and how..at the unwitting expense of all the rest (as the world burns).
4) Distracts from global climate crisis. 1% makes as much money as possible before the collapse comes! Grifters gotta grift!
I’ll leave it to readers to add more examples!
Cheers, and peace
1) Rise in energy prices is due almost entirely to the war.
This may be true for Europe, but not for the US. On his first day, Biden killed energy production in the US, bringing us from a net exporter to begging for OPEC to open production, and groveling to Iran and Venezuela for oil.
Europe’s problems stem from similar Green sensibilities; closing nuclear facilities and becoming dependent on Russian oil. Buy all the carbon credits you wish, cover the planet in those lovely Chinese solar panels, leave the black goo or coal in the ground (it was produced there naturally, btw) — and then cry about the price of energy.
Scream about “price gouging” and Putin all you want, if it helps you avoid the fact that prices are, in fact, your fault. The rest of us are still saying, “Told ya so.”
glad they gave us this advice now. if they had waited a year, we’d need to budget $6000