The newest report from the disgraced U.S. Labor Department Bureau of Labor Statistics—on consumer price inflation in August, released Sept. 10—completed the picture of the American economy in stagflation; the dollar down 10% vs. major currencies in 2025; and with not one, but several large debt bubbles growing rapidly toward explosions. The question, whether the Trump White House actually wants this slump toward recession, in order to force down Federal Reserve interest rates, is becoming a loaded one; it comes at the same time major nations in the BRICS and SCO are defying economic bullying by Washington, and beginning to construct an alternative set of trade, credit and development systems.
Consumer price inflation was reported as continuing its slow but steady growth during 2025: August’s 0.4% overall rise was the largest for any month this year, as was the year-to-year inflation at 2.9% through August. The background is jobs growth averaging only 30,000/month in the second and third quarters, manufacturing employment continuing to drop, and unemployment claims suddenly jumping by 40,000 to 263,000 in August. As to the inflation, it appeared tariff-related in part, as clothing, grocery food, and automobile prices each rose in August by 0.5-0.6%. The other major factors included household electric bills, suddenly rising at a 5-6% annual rate in 2025; and shelter, up 0.5% in August.
