In the midst of a national emergency, of backed up supply chains affecting almost every nook and cranny of the American economy, Joe Biden may have stumbled into a partial solution involving America's great private sector businesses.
So, Joe Biden meets business? Well, not exactly. Because during his White House meeting today, he still snarked at the private sector:
Joe Biden, Wednesday: Direct all appropriate action at the private sector doesn't step up. We're going to call them out and ask them to act because our goal is not only to get through this immediate bottleneck, but to address the long standing weaknesses in our transportation supply chain at this pandemic has exposed
Of course, all of these big, private sector companies like UPS, FedEx, Walmart, Home Depot, Target, Samsung, all agreed to work 24/7 to finally straighten out these pandemic shortages. President Biden should be thanking these great companies. Not snarking at them.
The whole bottleneck is at the Ports of Long Beach and L.A. Computer chips, toys, building materials, smartphones, all the stuff coming from Asia is bottlenecked. Some reports say more than 60 ships are stuck.
So at the White House meeting today, besides the big companies going 24/7, the Longshoreman and Warehouse Union (ILWU) announced its members are willing to work extra shifts. Again, while Mr. Biden snarks at our private sector businesses, they are sending their own trucks and planes to help get the job done. Look, that still leaves the problem of the American trucking crisis.
Especially, the shortage of long-haul truck drivers. And, to be honest, there's still a shortage of skilled longshoremen on the West coast. So, what we have here, is a beginning, that looks like a government-private sector partnership -- even with Biden's snark.
Maybe, some progress to unload the containers and ship them across the country in time for Christmas will be made.
As we know, the supply shortages and the consequence shortage of goods delivered has caused prices to spike up.
I refer to it as 'pandemic inflation.' I believe it is temporary. But I also think temporary is going to last a longer time. Today's CPI was up 5.4% for the year ending September. Not a good number.
Energy's up 21% annualized over the past 3 months. Thank you, Green New Deal.
And food is up 8.5%. Not good. But there's another problem creeping into the inflation story. That would be monetary inflation.
The Fed is too loose. Creating too much money. For too long. The crisis is past. But they still cling to it. I worry that the Fed is financing or monetizing the supply-side shortage shock. I also worry the Fed is funding the government's overspending and borrowing. What you got here, even before the $5 trillion spending bill and its massive tax hikes is too much money chasing too few goods. Color me worried.
Meanwhile, Madame Congresswoman Jayapal, the leader of the far-left progressive caucus, hitting Speaker Pelosi saying: "Democrats should not leave childcare, paid leave, universal pre-K, community college, affordable housing, Medicare expansion, climate action, and a roadmap to citizenship for Dreamers behind."
And by the way, AOC and a bunch of New York House members wrote Schumer and Pelosi in a similar vein not to leave anything out of the pending legislation.
My advice? Save America. Kill the Bill.