ECB President Christine Lagarde Blames Less Focus On Job Retention During COVID For High U.S. Inflation

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European Central Bank President Christine Lagarde appeared for an interview on CBS’ Face The Nation(04/24/22) to discuss the current global inflation brought about by covid and the Russsia-Ukraine war. During her interview, President Lagarde made an interesting observation, telling host Margaret Brennan that inflation is higher in the U.S. because unlike Europe, the U.S. focused more on issuing covid stimulus/relief checks than on job retention. Europe’s primary focus during covid was on job retention. She said the resultant labor shortage in the U.S. is driving up wages, which are in turn, driving up costs. Hmm, interesting.

Host Margaret Brennan(video at 4:53):“In this country there’s a lot of debate around how much the government is to blame versus the central bankers for the inflation that we are experiencing. The U.S. spent $6 trillion on covid relief, $2 trillion of it on President Biden’s watch last Spring when the economy was already recovering. Do you think some of this spending in the U.S. exacerbated inflation, because Europe didn’t spend like this?”

President Lagarde:“We in Europe spent less in stimulus, and I think we spent differently. We spent pretty much half as much as what the U.S. government spent on stimulus, and heating up the economy. But we also spent differently because I think the focus was predominantly on keeping the jobs, not necessarily sending the checks, and as a result of that, people who managed to keep their jobs alive, while not necessarily going to work because covid stopped everybody from going to work at some point in time, they had their job. So when covid was over, they went back to their job. So, I think that the labor market that you have currently in the U.S., which is incredibly tense, where you have a lot of jobs that are not filled, where you have plenty of vacancies, we don’t have that in Europe at the moment, and the current situation you have on the labor market here in the U.S. is clearly contributing to possible strong inflation and second round effect, where prices go up, wages go up, short supply of labor, wages continue to go up, and that feeds back into prices. That’s one of the differences between our two economies.”

There’s no other way to interpret ECB President Lagarde’s remarks other than(I’ll be happy to stand corrected of course), the current strong inflation in the U.S. is largely driven by the fact that the government did not do enough to help people keep their jobs during covid. In other words, even though a lot of people could not physically go to work during covid, more should have been done to make sure their jobs would still be there for them after the pandemic–propping up their employers to keep them afloat. According to President Lagarde, this is precisely what Europe focused on–propping up the employers, and is the reason Europe is not seeing the high levels of inflation as the U.S.

For the record, this does not mean Europe did not hand out covid stimulus/relief checks to workers like the U.S. did. What President Lagarde is saying is that the primary focus in Europe was job retention. It’s also worth pointing out for the sake of fairness, that the entire U.S. covid response, and the resultant high inflation, cannot be pinned solely on the Biden administration. Reasonable people will agree that the Trump admin is equally to blame.

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Pompeo Slams Biden Admin For “Allowing China To Walk All Over Them” In The South Pacific

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Former Secretary of State Mike Pompeo appeared on Fox News’ Ingraham Angle show(04/21/22) to discuss among other things, reports this week that China has signed a security pact with the strategically located Solomon Islands in the South Pacific. Pompeo slammed the Biden administration over this, saying they are “allowing China to walk all over them.” He added that China will “park missiles” in the Solomon Islands, and could in the future use this strategic location to block trade routes that are important to the United States.

Pompeo specifically told host Ingraham(video at 1:20):“The Chinese have been trying to expand their footprint in the Pacific, and in particular, the South Pacific for an awfully long time. They began by building out a set of islands called the Spratlys. They put military bases on there after they promised President Obama they wouldn’t, and when they did, he did literally nothing. The Solomon Islands and other Islands in the Pacific are places where they can park missile systems, naval bases, other naval capabilities that they can use to foreclose trade, all of the important trade that moves through all of the South Pacific into the Eastern Pacific, into places that matter an awful lot to the United States of America. It’s why China is so focused on it, it’s why in the Trump administration we worked so diligently to try and build out alliances with those countries. The Biden administration has allowed China to walk all over them throughout the entire Pacific.”

Pompeo went on to add(video at 2:30):“I don’t think they[China]respect or fear the United States under the leadership of President Obama and the team…This administration hasn’t shown the same resolve and the same capacity to deter aggression that we did for 4 years…The Chinese Communist Party presents the single greatest external risk to the United States of America from any place in the world…We need to lead the effort to make sure that the Chinese Communist Party doesn’t dominate global trade and dominate the global economy in the years and decades ahead. We can do it, but it takes American leadership.”

Bottom line folks, even though reasonable people will agree that Trump GOP is currently mired in frivolity(fights with Disney, hyperventilating over CRT, going after transgender athletes etc), the China issue remains one of the few legitimate arguments they still have. Simply put, the United States cannot allow a perception to fester out there, that China is always running us over. So you ask, “Why should we care about such a perception”? Look no further than the current Russia-Ukraine war. Make no mistake about it, Putin invaded Ukraine because (1) he knows he has China’s support and (2) the United States has demonstrated no willingness to confront China in any way out of fear of “disturbing our trade ties”. This dynamic has to change. We need to make China respect and fear the United States, not just for our own national security sake, but also to deter autocrats around the world who have figured out that they can commit atrocities while hiding under China’s umbrella.

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Biden Admin Announces Opening Of A Major Electric Vehicle Charging Plant In Tennessee

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Biden administration’s Infrastructure Coordinator, Mitch Landrieu, made a major announcement on CNN’s New Day(02/08/22), that a major electric vehicle charging facility operated by Tritium, is opening in Tennessee. Tritium is a global leader in the electric vehicle charging industry, making this announcement a major development on the infrastructure front.

Mitch Landrieu said on New Day: “The infrastructure law is a once-in-a-generation opportunity to rebuild the country. We’re not just talking about roads and bridges and airports and lead pipes, we’re actually talking about manufacturing, and of course as we electrify the economy, and we talk about electric vehicles coming, somebody has to make the electrical vehicle charging stations, and we want those made here in America, so this particular announcement is really groundbreaking. It’s going to be in Tennessee. They are going to build 30,000 electrical vehicle charging stations. On Thursday, Secretary Buttigieg and Secretary Granholm are going to announce $5 billion to begin the process of putting 500,000 charging stations across America, but we want those charging stations made in America, we want them with American products, and today is the start of actually manufacturing those here at home.”

Think about that. The infrastructure law was just enacted the other day and already, the Biden administration is putting people to work. Per Coordinator Mitch Landrieu, the plan to install as many as 500,000 charging stations across the country, begins today in Tennessee. Talk about MAGA–Make AmericanManufacturing Great Again!!

Bottom line folks, as Yours Truly said the other day after Speaker Pelosi and her House Democrats passed America Competes Act, don’t get lost and discouraged with all the noise from naysayers on MSM, talking about how Dems will “lose in November because they are not delivering.” The fact of the matter is Dems, both congressional and the Biden admin, are hunkering down and delivering on things that matter to working families, the latest example being the electric charging plant in Tennessee, which translates to jobs, jobs, jobs(good ones). MSM naysayers have one valid point though–Dems need to do a better job of touting their accomplishments.

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