Why the Cost of Living Is Quickly Becoming Unbearable
From Peter Reagan for Birch Gold Group
In addition to the already bad news we revealed last week, it looks like there is even more bad news for Biden.
It appears like it’s becoming even more expensive to live in this country, no matter where you decide to put down roots or try to save for your retirement.
So let’s take a quick look at why that could be…
No matter how the administration tries to spin the last few years of inflation, the fact is, it’s persistent and heating up again. On top of that, it looks like even more people are starting to come to grips with that reality.
A recent AP survey put a spotlight on the newest developments:
An AP/NORC survey showed 58% of respondents said Biden has "hurt" the cost of living.
Years of relentless price increases on gas, groceries, and other necessary items tend to support the perfect storm of economic impacts the poll respondents could be feeling.
In fact, according to a recent update by Charlie Bilello, the rate of price inflation has been both high and persistent for the first time in over 30 years:
The U.S. Inflation Rate has now been above 3% for 36 consecutive months, the longest period of high inflation since the late 1980s/early 1990s.
By comparison, the same AP survey surprisingly revealed that 40% of respondents thought Trump’s administration hurt the cost of living. It’s understandable that they think that way. After all, he was in charge when the Fed lit the spark for higher inflation during the initial COVID-19 panic.
But the fact is, the inflation rate didn’t actually start heating up at a noticeable rate until a few months into Biden’s tenure. It eventually reached a historic pace in June 2022 not seen in the last 40 years (officially as high as 9% year-over-year).
In addition, a news release by the Associated Press revealed that some Americans have long memories of exactly who was in charge when it comes to the price they’re paying at the grocery stores and gas pumps:
"Considering the price of gas, the price of groceries, the economy – I did very well during those four years," 60-year-old Christina Elliott, a Texas Republican, told the AP of Trump's tenure. "I didn't have to worry about filling up my tank or losing half of my paycheck to the grocery store."
With all of that in mind, here are three more data points to consider, that add to the heap of data that show how Bidenflation is affecting people.
BGG - Transcript
Inflation, it’s the uninvited guest at every purchase, silently stealing the value of your dollar. Imagine that latte you used to get for $5, now costing $6. That, my friends, is inflation in action.
But what exactly is inflation? It’s the decrease in the purchasing power of a currency over time. So while your paycheck stays the same, your dollars buy less each day. Think of it like a slow leak in your financial tire.
You might not notice it right away, but eventually you’ll be pulling over to fill up more frequently. There are a few reasons why this sneaky problem shows up. Sometimes it’s a demand surge.
Imagine everyone getting stimulus checks and wanting that new gadget. Too much money chasing too few goods. Prices go up.
It’s like a crowd rushing for the door in a limited sale. Those who get there first snag the deals, while everyone else is stuck with higher prices. Other times it’s a supply shock.
Maybe there’s a war disrupting oil production, or a global chip shortage slowing down car manufacturing. Suddenly there’s less stuff to go around, and bingo, prices jump. Imagine a factory fire disrupting the production of your favorite sneakers.
With fewer shoes available, the price for the remaining stock skyrockets. Now inflation can have a ripple effect throughout the economy. Businesses see their costs rise for materials and labor, so they raise prices to stay afloat.
This can lead to wage increases for workers, but often not enough to keep up with inflation. It’s like running on a treadmill that keeps getting faster. You might be working harder, but you’re not necessarily getting anywhere.
And guess who gets squeezed the most? The average American. Everyday essentials, groceries, gas, rent, they’re all shooting up faster than wages. Suddenly your paycheck doesn’t stretch as far as it used to.
You have to make tough choices. Skip the vacation, put that dream home on hold, or maybe even cut back on groceries. It’s a financial tightrope walk, and many are feeling the strain.
Now some experts are even whispering about the demise of the almighty dollar. Will it become yesterday’s news like the Roman denarius? Maybe not, but its dominance as the world’s reserve currency could be challenged. Inflation is a complex issue with no easy answers, but understanding it is the first step.
So stay informed, because in this inflationary game, knowledge is power. You might have to ditch the fancy latte for now, but at least you’ll be financially prepared for whatever bumpy road lies ahead. To learn more about how inflation affects your savings, go to Birchgold.com.
More bad news about price increases in three charts
While the “price at the pump” has risen and fallen over the last few years, it hasn’t fallen back down to “Trump-era” pricing.
In fact, since 2021 the average retail gas price hasn’t fallen below $2.40 a gallon, and hasn’t fallen below $3.00 a gallon since 2022. It’s also on the rise again:
Heritage Foundation economist E. J. Antoni, PhD took to X and revealed more bad news about the impact that Bidenomics has had on hardworking families:
Retail sales last month look like they're up 15.3% since Mar '21, but if you adjust for inflation, the real change is -2.2% over the last 3 years - consumers aren't buying more, they're just paying more; families have clearly lost ground over the last 3 years: pic.twitter.com/ca6UKMo7Nr
— E.J. Antoni, Ph.D. (@RealEJAntoni) April 15, 2024
Finally, if you feel like your car insurance company is performing some sort of “highway robbery” on your bank account since October 2022, then you would be right:
To put this in perspective, average comprehensive car insurance premiums jumped from $2,000 per year to more than $2,400 per year in March 2024 alone. That’s like adding two full month’s worth of premium payments.
And don’t forget, inflation’s impact is cumulative, not static like most people think. That lost purchasing power doesn’t come back.
Once prices go up like this, they just don’t come back down.
We can’t get back what we’ve already lost – but we can take steps right now to prevent it from getting even worse…
Insulating your savings from the rising cost of living
Here’s the good news: Physical precious metals like gold and silver have historically provided a hedge against inflation. (There are also several other inflation-resistant investments to consider alongside metals).
In fact, the price of gold has soared more than 25% since October of last year (as of April 17th, 2024). Take a look at the current interactive prices on most physical precious metals including gold right here.
There's a reason gold has been hitting all-time high prices recently. More and more American families are desperate to preserve their purchasing power from inflation.
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