The world is facing an economic crisis
The West needs leadership after Biden failed the test
Increased oil and gas production will reduce the heating bill in the coming winter in the United States.
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Biden's plan to eliminate student loans would eliminate all budget cuts contained in the Inflation Reduction Act.
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The world's economic systems are facing a state of rapid decline as inflation continues to rise, and the Western world is looking to US President Joe Biden to take the helm, but it seems absurd.
President Biden did not do the two things that might help the economy in his country, and in countries around the world, to restore stability: stop the flow of money from the federal government and help the gas and oil industries increase production so that energy prices fall.
deficit reduction
Determined to reduce budget deficits and raise energy production rates, Biden is showing that he is serious about helping the Federal Reserve fight inflation, and ready to take on the climate-obsessed progressives in his party to confront the global energy situation.
Right now, what Biden is doing is just the opposite, while Federal Reserve Chairman Jerome Powell is taking drastic measures to curb the growth of the money supply, the White House is canceling these efforts by pumping more money into the economy as quickly as possible. .
Biden's latest spending plan is Student Debt Elimination, a program that the US Congressional Budget Office estimates will cost $400 billion.
Given that the Budget Office neglected to estimate the costs of parts of the program, which could be added to the total amount, the committee responsible for the government's budget says the costs of this plan will approach $600 billion.
$4.8 trillion in additional debt
In other words, on top of the $1.9 trillion US bailout, the $1.2 trillion infrastructure bill, and the $280 billion chip industry bill, not to mention the half-trillion-dollar student loan abolition plan, which probably won't be legal.
And "Congress", not the president, is concerned with controlling the treasury.
This massive program began with an unprecedented executive order, and is sure to meet challenges in court.
In all, according to the Federal Budget Committee, Biden added $4.8 trillion to US net debt.
All this spending is considered reckless, and it certainly helped increase inflation, and even the White House itself admitted this, arguing that the measures to reduce secondary deficits contained in the Inflation Reduction Act could help reduce price increases, and if the deficit led to a decrease in inflation, would it not lead to an increase in prices? Deficit to increase in price?
In any case, Biden's plan to eliminate student loans will eliminate all budget cuts contained in the Inflation Reduction Act.
Powell urged Congress to increase spending, arguing that the Federal Reserve could not prevent the recession caused by the Corona pandemic alone.
Now he has to sound a counter note, because he can't beat inflation alone, either.
Fiscal and monetary policy must not work in reverse.
Increase energy production
At the same time, another anti-inflationary measure that Biden should take is to increase energy production, not just increase global oil and gas prices that raise inflation, as Europe faces shortages that would become a humanitarian catastrophe.
The United Kingdom opened heating centers to prevent people from freezing up from the cold next winter, and public offices and museums were among the organizations mobilized to provide shelter and heating for Britons, who could not afford fuel, and the only problem here is that some public buildings are struggling to pay their heating bill.
Reports to the British newspaper, The Guardian, quoted the Catalyst Center for Discovery of Science and a museum in the Wideness Industrial Estate in Cheshire, Britain, that offers to renew the annual gas contract increased in the past week from 9,700 pounds to 54,362 pounds.
Like Biden, policymakers blame Russia's president, Vladimir Putin, and the war in Ukraine for the horrific increase in heating costs, but that's not the whole story.
wind stop
Before the war in Ukraine, electricity prices skyrocketed in the UK, but why?
Because the country has become dependent for a quarter of its electricity production on air towers located in the North Sea.
But these towers stopped moving in August 2021 for six consecutive weeks when the winds stopped completely, which is something that happens frequently.
Due to the sudden shortage of wind power, the UK replaced the lost fuel with natural gas, resulting in a doubling of electricity prices in the UK overnight.
As in Germany and elsewhere, the shift to renewable energy in the UK has not been a well-thought-out plan. The winds sometimes stop, the sun goes down, and politicians wooing climate advocates don't pay attention to such inconvenient details.
California's Democratic governor, Gavin Newsam, is following the same path, even if the results are poor.
President Biden wants the Newsam to be rolled out nationwide, and has made a huge down payment in the Inflation Reduction Act.
But the leader must inform the country that this is just an aspiration that can be implemented in the long run, because we are facing a global emergency that requires the maximum use of all energy sources.
heating bill
The leader should sit down with the major oil and gas producers in his country (which Biden rejected) and draw up a plan with them to increase production at home.
Because increased oil and gas production in the country reduces the heating bill next winter in the United States, and helps our allies deal with shortages that have become so bad as a result of the war in Ukraine.
Of course, supporting the European economies, who are our major trading partners, will help the US economy as well.
The world is facing an economic crisis, and the United States must do everything possible to help curb inflation here and in other countries.
Unfortunately, that would require bold action from a president who, according to opinion polls, is suffering from an unpopularity, and who unreasonably believes that things are going well.
• Due to the sudden shortage of wind power, the UK has resorted to replacing lost fuel with natural gas, resulting in a doubling of electricity prices in the UK overnight.
• The United States must do everything possible to help curb inflation in America and other countries.
Liz Beck ■ American commentator
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