In the latest bit of proof that our “experts” are clueless, it’s being widely reported that the economic decline we all saw coming is “unexpected” by the media.
Amidst levels of inflation not seen since the Carter presidency, the Bureau of Economic Analysis released data this morning showing that real (inflation adjusted) U.S. gross domestic product declined 1.4% in the first quarter of the year. That’s despite record government spending that by definition inflates GDP, and as aggressive interest rate hikes that will further slow down growth loom.
CNBC reports that:
The negative growth rate missed even the subdued Dow Jones estimate of a 1% gain for the quarter. GDP measures the output of goods and services in the U.S. for the three-month period.
Prices increased sharply during the quarter, with the price index for gross domestic purchases surging 7.8% in the three-month period, following a 7% gain in the fourth quarter of 2021.
The decline in growth came due to a deceleration in private inventory investment, which helped propel growth in the back half of 2022.
This complicates the Biden administration’s spin on the economy, which has thus far focused on blaming inflation on Vladimir Putin due to rising oil prices, even though the overwhelming majority of the rise in gas prices came prior to the invasion of Ukraine. The narrative seems to only be plausible to his base, as only 14% of independents are blaming the rise in gas prices on Putin – and of course Biden has seemingly no explanation for why the costs of everything else is going up too. The narrative in early-to-mid 2021 that inflation was merely “transitory” has disappeared without a replacement.
President Biden has blamed major oil companies & President Vladimir Putin for higher fuel prices. Critics say Biden’s energy policies are mainly to blame. Who bears most responsibility for higher fuel prices?
– Independents –
Not Sure: 7%
Big Oil: 25%
Putin: 14%
Biden: 54% 👈 https://t.co/ARkBpadg8s pic.twitter.com/SBoSybck4D— Rasmussen Reports (@Rasmussen_Poll) April 27, 2022
Americans are blaming Biden for Bidenflation, and now we’re only one more quarter of negative growth away from a Bidencession.
In just the latest sign of the administration’s increasing desperation, Jen Psaki pitched a new theory for why Biden isn’t popular – we just haven’t had the chance to see his magic yet!
To the contrary, I think we’ve seen more than enough of his magic at work.
Matt Palumbo is the author of The Man Behind the Curtain: Inside the Secret Network of George Soros
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