Hello everybody and thank you for tuning into the weekly report.

Respect the Fed?

No.

And the Fed.

President Joe Biden has unveiled a three-part plan to fight inflation or at least make people

think he is fighting inflation.

One part of the plan involves having government agencies fix the supply chain problems

that have led to shortages of numerous products.

Of course any attempt by the government to solve the supply chain problems, which were

caused by prior government interventions such as shutting down the economy for over a

year, will not just fail to solve the supply shortages but will create new problems.

Deficit reduction is another part of Biden's anti-inflation plan.

However, Biden is not proposing cutting welfare or warfare spending.

Instead, his deficit reduction plan consists of tax reforms to increase revenues, which

is DC speak for tax increases.

History shows that tax increases unaccompanied by spending cuts end up increasing the deficit.

The last and most important part of Biden's inflation plan is recognizing that the Federal

Reserve has the primary responsibility to control inflation.

President Biden has pledged to respect the Fed's independence, unlike former President

Trump, who Biden accused of demeaning the Fed by subjecting the central bank to mean

tweets.

It's hard to believe that someone who has been in DC as long as Joe Biden really thinks

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