Breaking: Elon Musk Issues Dire Warning That Biden’s Fed Will Tank The US Economy Due To Bad Policy

NY Daily News

Disclaimer: This article may contain the personal views and opinions of the author. 

Since President Biden’s inauguration in January 2021, Americans have seen inflation soar. It’s surged 13% over the past 18 months according to an economist at the American Institute for Economic Research. 

Wages however have not risen at the same percentage. With wages rising around 8%, most Americans are essentially experiencing pay cuts. They’re struggling to buy food and gas and pay the rent. 

The Biden Administration assured us that the inflation was temporary. Then it was transitory. In response to the latest numbers, Biden said inflation only went up “an inch.”

Jeremy Siegal, a professor at the Wharton Business School, said “It’s like a pendulum. They were way too easy, as I’ve told you and many others, through 2020, 2021. And now, Oh my God, we’re going to be real tough guys until we crush the economy.

“Poor monetary policy would be an understatement.”

The Fed stepped in to try to bring inflation under control when costs skyrocketed and Biden’s poll numbers dropped. It was a little too late. 

Now Elon Musk is giving us a warning. He said, “Siegal is obviously correct.”

He thinks that Biden and his administration are going to bring about deflation because they won’t admit their policies are killing the economy. 

Siegal went on to say, “Honestly, I think Chairman Powell should offer the American people an apology for such poor monetary policy that he has pursued, and the Fed has pursued, over the past few years.”

“Chairman Powell talked quite a bit about JOLTS data — the job opening and labor turnover data. How tight it is. 

“Interesting thing, I look back a year ago September, it was exactly as tight as it is today. And he never said anything about inflation. What’s caused him to change his mind? It’s the same data.”

Anyone who took Econ 101 knows that printing money and excessive government spending will lead to inflation. When you have too much money spent chasing too few goods, prices rise. 

The money is growing faster than production or the GDP. The faster rise in prices reduces real production. 

“It seems to me wrong for Powell to say we’re going to crush wage increases, we’re going to crush the worker, when that is not the cause of the inflation. 

“The cause of the inflation was excessive monetary accommodation for the last two years,” he said.

Now in an effort to tackle the “white-hot” inflation that the U.S. is experiencing, the Federal Reserve approved the third consecutive 75-basis-point hike. They’ve also indicated that they’ll keep hiking the rate. 

Interest rates are now 3.25% up from .25% a year ago. These rates impact what Americans can afford when it comes to financing things like homes and cars. 

7 in 10 Americans say that inflation is negatively impacting their lifestyle according to a survey of 1,100 people across the country. 

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