Biden takes another victory lap.

Says his economic policies tamed inflation.
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I guess it’s not as bad as when he declared inflation was down to zero, but…

According to WaPo: “Biden is now seeking to reframe the economic narrative ahead of announcing his own reelection plans early next year”.

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It’s cringe worthy when Joe declares that he’s got inflation under control.

Yep, the year over year rate of change has dropped from over 8% down to the mid 7s, but that’s hardly an end to the inflationary pressures that everybody is feeling.

The number to focus on is 13.8% … that’s how much prices have gone up since Biden was inaugurated.

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Diving into the numbers:

> When Biden was inaugurated, the CPI was 262.2 … in November, it was 298.3 … that’s a 13.8% increase over Biden’s 22-month term … on an annualized basis, that’s a 7.1% APR

> In comparison: When Trump was inaugurated, the CPI was 243.6 … when he left office in Jan. 2021, it was 262.2 … that’s a 7.6% increase over Trump’s 4-year term … on an annualized basis, that’s a 1.9% APR

> Cutting the numbers a different way: From Trump’s inauguration date to Nov. 2022 (almost 6 years), the CPI increased 21.3% … 1/3 of the increase occurred during Trump’s run (at a 1.85% APR, which is roughly what the Fed targets for the U.S. long term rate) … and 2/3s of the increase has hit during Biden’s reign (2 years at a 7.1% APR)

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Think about this:

> If inflation had continued at Trump’s APR ( a 1.85% APR), the CPI would be about 270 today … we’d be seeing prices about 10% lower than they are today.

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Ask yourself a variant of Ronald Reagan’s “cut to the chase” question:

Is your pantry, wallet, IRA, 401K or 529s better off today than they were 22 months ago?

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