It’s all hands on deck for Democrats with Joe Biden’s re-election campaign on thin ice.
They’ve got to find a way to drag him across the finish line this November.
And John Kennedy sounded the alarm on this sick move to save Joe Biden.
The economy could cost Joe Biden re-election
President Joe Biden is in big trouble for re-election at the start of summer.
He’s trailed former President Donald Trump in polling nationally and in the swing states that will decide the election for months.
And in some swing states, like Nevada, he hasn’t let in a single public poll this year.
Biden’s collapse in support can be traced back to the economy and inflation.
Democrat strategist James Carville famously said while working on former President Bill Clinton’s 1992 Presidential campaign, “It’s the economy, stupid.”
The economy is slowing down in an election year, and inflation is still too high.
That’s why Department of Treasury Secretary Janet Yellen is trying to juice the economy to help Biden out for November.
John Kennedy calls out a scheme to juice the economy for Joe Biden
There’s funny business going on with the bonds the government issues.
U.S. Senator John Kennedy (R-LA) accused Yellen of borrowing short-term bonds at higher interest rates rather than long-term bonds at lower rates during a hearing.
“Today you can borrow for 10 years at 4.4%. Instead, you’re choosing to borrow at 5.4%,” Kennedy said. “That makes no sense!”
Common sense would dictate borrowing money at the lowest interest rate possible.
“Market participants believe that short-term interest rates will come down, and they will come down to a level substantially below the current 10-year,” Yellen replied.
“You announced last November . . . that we have decided to start issuing an inordinately large amounts of short-term debt, didn’t you?” Kennedy asked.
Yellen said that she did.
Kennedy said the rise in short-term debt was about boosting economic growth in an election year.
This is a way to get more cash into the economy that no one will notice.
“Because of the inverted yield curve, that means that you’re gonna pay more in interest on short-term debt than say 10-year debt,” Kennedy explained. “Now that’s a fact. You can go check the numbers of Treasuries yesterday. First, that costs taxpayers a lot more money in the interest.”
The short-term economic boost by stimulating the economy is increasing inflationary pressures.
“And number two, you’re working at cross purposes with the Federal Reserve because what you’re doing is stimulating the market,” Kennedy continued. “You’re pumping money into the economy and Jay Powell’s over here beavering away trying to reduce inflation. And you’re beavering away trying to increase it.”
Yellen doesn’t care about anything other than Election Day in November.
“By paying an interest rate that is 100 basis points higher than you would have to pay,” Kennedy said. “And the only reason I can figure that y’all are doing that is, is to try to give the economy a sugar high five months before an election. Why else would anybody want to borrow at 5% when you can borrow at 4%?”
The stock market has surged this year after Yellen began juicing the economy.
Kennedy said that it was in the best interest of taxpayers to go with the lower rate.
“You’re borrowing at 5% when you could borrow at 4% to deficit spend. And it makes absolutely no sense why you would do that other than to try and artificially stimulate the economy and help Joe Biden get reelected,” Kennedy stated.
Truth is, Janet Yellen is trying to move the needle on the economy to keep her boss in the White House.
