Sorry, but Inflation Forced My Hand

I think it’s safe to say that this wave of runaway inflation is the biggest economic impairment the U.S. – and the world – has had to face over the last decade. No matter where you turn, what you read, or what side of the aisle you’re on, this issue is front-and-center in our collective consciousness.

The scary part is in the uncertainty it brings. Experts across the full spectrum of our financial landscape have posited competing theories about its peak, origin, and greater implications. Yet still, it drags on with no end in sight.

Speaking of drags, it’s definitely weighing heavily on Biden’s head right now, as his approval rating continues to sink. Sound economic policy was part of the platform he ran on, yet he now admits he’s powerless in the face of inflation.

Here’s what he said on Wednesday:

“There’s a lot going on right now. But the idea we’re going to be able to, you know, click a switch, bring down the cost of gasoline, is not likely in the near term, nor is it with regard to food.”

That gas cost, incidentally, is now at another record-high of $4.67 per gallon. And annual inflation is soaring about 8% – a four-decade record as determined by the Labor Department’s consumer price index.

Treasury Secretary Janet Yellen has also admitted abject ignorance about her former inflation forecasts. She appeared on television Tuesday to walk back her stance on our economic trajectory, admitting the situation was much more difficult to define than she organically believed.

Considering all of these commentaries, it’s easy to see that top federal officials are finally becoming concerned about the issue. Biden even penned an op-ed in The Wall Street Journal where he claimed he was ready to “work with anyone – Democrat, Republican, or independent – willing to have an open and honest discussion that delivers real solutions for the American people.”

But many are saying it’s too little too late for a problem that didn’t have to be this bad to begin with. 

To quote Yahoo Sports (for some weird reason):

“Steven Rattner, economic adviser for President Barack Obama, said much of the blame for inflation falls on Biden’s American Rescue Plan, which gave many Americans $1,400 checks, unleashed a host of social programs, and pumped $350 billion into local and state governments.

“‘We’re all paying the price for having overstimulated this economy during the pandemic and putting too much money into people’s pockets, which created a lot of this inflation,’ Rattner said Wednesday on MSNBC’s Morning Joe. ‘There’s no free lunch here. Now we’re all going to have to pay the price.’”

He added that today’s economic issues are “to a considerable degree self-inflicted… by our fiscal policy, the stimulus, as well as by the Federal Reserve.”

And now we have to pay the piper.

More Non-REIT News to Know About 

In a major, major move, Amazon (AMZN) says it’s removing its Kindle device and content sales in China. This comes as the single largest American tech retreat the People’s Republic yet has experienced.

From The Wall Street Journal:

“Amazon said Thursday it will stop selling titles in China on its Kindle e-book shop on June 30, 2023. And customers will no longer be able to download already-purchased books a year later. The company said it has already halted sales of the device to third-party sellers and is offering refunds to anyone who bought a Kindle in China after Jan. 1.”

Why?

Well, it might have something to do with China issuing some of the world’s strictest censorship standards. As such, it’s earned the ire of many companies, including LinkedIn. That tech major announced it would suspend operations there last year for that very issue.

Then again, Amazon’s move could be because it no longer enjoys the same significant spot it used to in the country’s e-reader ranks. China’s own tech companies have been eating into its profits there.

In 2021, Kindle owned 65% of China’s e-reader market and drove the most book sales for the country. However, overall e-reader sales in 2021 dropped 12.5% to 2.1 million units.

Whichever one is the real reason driving Amazon out of China in this area… I’ve got my eyes on what comes of it.

The World According to REITs 

Get ready REIT world!

Nareit’s REITweek is set to kick off next week at the New York Hilton Midtown Hotel in Manhattan.

The REITweek Investor Conference is the largest annual real estate investment trust industry investor event in the world. It attracts over 3,000 investors, REIT executives, and industry pros each year. And that’s just in-person attendees.

This event provides opportunities for investors to meet one-on-one with REIT management teams. Attendees can hear directly from more than 90 top REIT management groups as they divulge business plans, forecasts, and strategies during 30-minute presentations.

It also offers compelling panels that provide the latest perspectives on the economy, industry trends, and other investment insights and information. It’s hard to find a better place to be if you’re looking to get even more invested in the REIT world!