As rampant inflation sets its sights on most Americans' wallets, the Federal Reserve has once again decided to pore gasoline on the situation.
Overnight, the Fed's raised its rates by a staggering .75 basis points. The theory is to begin shrinking the money supply, thus curbing inflation. One of the principal problems with this theory is that when the interest rates rise, home and auto sales begin declining in proportion.
Home Sales have slumped dramatically because of rising interest rates.
Home sales nationwide have declined in June by some 20% over last year's sales. Considering that new home construction and sales account for 15-18% of our nation's economy, these signs further prove that the United States is heading in the wrong direction. Consider this to gauge the real estate market's impact on our country's economy.
Every home sold in the United States puts approximately $88,000 back into the economy. This is according to the National Association of Realtors. According to most economists, two consecutive quarters of economic decline is the definition of a recession.
The first quarter of 2022 had the economy shrinking by 1.6% and the second quarter by .09%. Of course, the White House completely denies that America has entered a recession, as has Treasury Secretary Janet Yellen. Both are pushing back that America's economy is weakening.
Janet Yellen and the Biden Administration have been called out by few, if any, of the mainstream media. However, Real America's Voice D.C. correspondent, Christopher Carter nailed them in this video.
The pump prices tell much of the story. This is what Biden's energy policy has done to our country.
Gasoline and Diesel Prices are punishing this economy.
Probably the hardest hit across the board is the lower income and middle-class income earners. A full-blown recession means higher inflation and less income for America's homes and families, which in turn means less spending at retail stores. This translates to layoffs at the manufacturing level as well. When washers and dryers are not sold, the manufacturer is forced to lay off assembly line workers.
It is now being reported that last quarter, inflation in the United States had risen to the highest levels in over four decades. This was primarily fueled by the rapid and drastic rise in gasoline and diesel fuel prices, in addition to the meteoric increase in grocery prices.
One last major player in this question of "whether our nation" has sunk into a recession is the trillions of dollars that Joe Biden had printed and pumped into our economy during the COVID Pandemic. Not only was this cash spread across the nation, it not only weakened our dollar as well as added to our national debt, which drove our interest payments up on paying for it. America is now at the staggering level of being over $30 Trillion in debt.
While the jury as to whether or not America is officially in a recession might still be out for Wall Street and the White House, for the average American, the question has been answered every time they purchase groceries or fill their gas tank.
By Ken Crow