Very quietly the Federal Reserve Bank In Atlanta made a revision that has economist putting their heads in the sand.
The FED in Atlanta very quietly revised their GDP forecast down by 41%. Conservative radio host blew the whistle that “something is very wrong here.”
While America was distracted, the Federal Reserve Bank of Atlanta revised its GDP forecast DOWNWARD by 41%. Something’s VERY wrong here. pic.twitter.com/kHy0Ujq7AJ
— Glenn Beck (@glennbeck) September 13, 2021
It’s almost as if economists are in denial. In a normal world the market would drop and there would be a correction. However, Wall Street is acting as if everything is normal as Biden tries to spend his way out of a mess he’s created.
Meanwhile, global food prices are up 33% from a year ago causing food prices to skyrocket in the USA.
According to Bloomberg food costs more now then it did in the last six decades:
Adjusted for inflation and annualized, costs are already higher now than for almost anytime in the past six decades, according FAO data. Indeed, it’s now harder to afford food than it was during the 2011 protests in the Middle East that led to the overthrow of leaders in Tunisia, Libya and Egypt, said Alastair Smith, senior teaching fellow in global sustainable development at Warwick University in the U.K.
Biden has increased food stamp eligibility and handed out more money through the child tax credit however, it’s not helping because of inflation.
Troy Sutton, 61 who lost his $12 per hour job during the pandemic recently landed a job making $18 per hour but he can’t seem to get ahead.
“I’m making more money. I should be able to see it,” Mr. Sutton said. “But I don’t see it because I’m paying more money for stuff now.”
“Lower-income households are being hit hard by higher food prices, higher energy prices, higher shelter costs,” said Richard F. Moody, chief economist at Regions Financial Corp. “It’s taking bigger proportions of their budget so it’s leaving them with much less discretionary income as opposed to higher-income households.”
The alarm is going off but our officials seem to be putting their heads in the sand hoping the problem will just go away.