Reminder: The Banking Mess Is Another Consequence of Biden’s High Inflation

The complexities around, and solutions to, the current banking crisis lie well beyond my core competency, so I’ll leave those matters to others. What I will say is that it’s indisputable that much of the upheaval can be traced back to the Biden administration’s disastrous inflationary policies, which have forced the Fed to hike up interest rates as a form an anti-inflation ‘chemotherapy’ for the overheated US economy — actions that have, in turn, directly and heavily contributed to unpleasant externalities like the collapse of Silicon Valley and Signature banks. Biden and his team were directly warned about the highly risky spending they were jamming through in partisan, Democrat-passed behemoths, including by respected Democratic economists.

They didn’t listen, then pretended the warnings never happened once the resulting “transitory” inflation was undeniably non-transitory after all.As we learned earlier this week, the inflation problem remains extremely painful and stubbornly persistent. Experts have suggested that the Fed stopping or slowing rate increases could reduce pressure in the banking sector at the moment, but still-high inflation remains untamed. It’s a ‘pick your poison’ scenario, with inflation at the root of all the economic evil. Here’s an Obama administration economist illustrating how core inflation has actually now been trending in the wrong direction for several months:



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