Gas almost $7 a gallon

[Loren Pechtel]

Neither of you is correct. Inflation is not the fault of the workers nor the business owners it is the fault of the management of our fiat currency. So even Biden is not at fault.....although in the specific case of gasoline Biden did cause supply to be restricted by some of his policy.

If you want to look at who's at fault for inflation, look no further to has been bragging a mandate to keep inflation at least 2%..... the federal reserve seems to have overachieved their goal at this point. Our privately held federal reserve is working to achieve goals that government wants. And government just loves inflation because it automatically reduces the actual size of the deficit and increases everyones effective tax rate. More power to the government and less power and liberty for the people.

While the Fed could cause inflation if they chose to what we are seeing now is economic in origin, not Fed related. There are two big factors at work:

1) Supply chain issues drove up prices.

2) Covid hammering the labor force cut the supply of labor and the price (wages) has gone up as a result.

The fed has only very crude control, they could not have prevented what we are seeing now.

 

[laughing dog]

I listened to the first five minutes then had to stop. It's absolute baloney. I have three engineers who work for me. Would like to have 4 at least. I've had to increase their wages by 30% in the last year. I've increased everyone's else's wages as well. I had to increase my prices to my customers. The customers have accepted so far. I would love to keep my prices the same, and grow sales as competitor's customers come to me. But it's impossible. I import an odd metal that quadrupled in price last year. I have to pass these costs on. I have several other business owners in my peer group. We talk about it all the time. We can't find workers. We can't find drivers. Most business owners hate hate hate to raise their prices because it can lead to customers looking elsewhere. Without customers, I'm sunk. I've raised prices 4 times in the last 2 years. And each time, I studied it for hours and couldn't sleep well until after the decision was made. I have one competitor who really targets my customers. But he has the same problem that I have. If he could find a way to do it cheaper and undercut me, he'd do it in a second. And vice-versa. I'm actually thinking about selling to him to get out of the stress. Again, all of my peers who own similarly sized businesses say the same thing. Anyone who thinks that labor shortage isn't leading to some inflation has no business experience. Okay - I'm off my rant!

So sorry to hear about your troubles, but when it comes to deciding whether national statistics or personal experience is more significant I go for the former.

Okay. I concede. Paying more for workers dosn't lead to inflation or price increases.

Considering that wages have risen by 5% over the past year while prices have increased by 8.6% in the same period, it is indeed mathematically true that inflation has been driven by price increases. As Robert Reich said, keeping those two figures in mind, wage earners have suffered an income cut to the tune of 3.6 percentage points. The assertion that wages drive inflation is absolute baloney.

Neither of you is correct. Inflation is not the fault of the workers nor the business owners it is the fault of the management of our fiat currency. So even Biden is not at fault.....although in the specific case of gasoline Biden did cause supply to be restricted by some of his policy.

If you want to look at who's at fault for inflation, look no further to has been bragging a mandate to keep inflation at least 2%..... the federal reserve seems to have overachieved their goal at this point. Our privately held federal reserve is working to achieve goals that government wants. And government just loves inflation because it automatically reduces the actual size of the deficit and increases everyones effective tax rate. More power to the government and less power and liberty for the people.

While it is true that inflation over longer periods of time is a monetary phenomena, it is not necessarily the case that current inflation is purely the result of past monetary policy. High inflation is a problem in many parts of the world - the US is not alone here - which makes blaming the Fed for our inflation seem rather naive. After all, one cannot reasonably blame inflation in Europe or China or Japan on the US Fed.

 

[RVonse]

While it is true that inflation over longer periods of time is a monetary phenomena, it is not necessarily the case that current inflation is purely the result of past monetary policy. High inflation is a problem in many parts of the world - the US is not alone here - which makes blaming the Fed for our inflation seem rather naive. After all, one cannot reasonably blame inflation in Europe or China or Japan on the US Fed.

The US is still the world reserve currency which greatly affects other countries. Other countries central banks have to exchange those same dollars with US central banks because most of the world is priced in dollars. And to deal with that they have to play their own currency games. So yes, you can blame their inflation on our US privately held federal reserve. Although not their fault the US dollar is the worlds reserve currency, it is still feds fault for inflating the entire worlds reserve currency.

 

[laughing dog]

While it is true that inflation over longer periods of time is a monetary phenomena, it is not necessarily the case that current inflation is purely the result of past monetary policy. High inflation is a problem in many parts of the world - the US is not alone here - which makes blaming the Fed for our inflation seem rather naive. After all, one cannot reasonably blame inflation in Europe or China or Japan on the US Fed.

The US is still the world reserve currency which greatly affects other countries. Other countries central banks have to exchange those same dollars with US central banks because most of the world is priced in dollars. And to deal with that they have to play their own currency games.
So yes, you can blame their inflation on our US privately held federal reserve. Although not their fault the US dollar is the worlds reserve currency, it is still feds fault for inflating the entire worlds reserve currency.

Sorry, that can only make sense if you can show that the Euro, the yen and the yuan have increased at the same rate as US money.makes no sense.

Since you cannot show that, your analysis is unconvincing.

 

[Loren Pechtel]

While it is true that inflation over longer periods of time is a monetary phenomena, it is not necessarily the case that current inflation is purely the result of past monetary policy. High inflation is a problem in many parts of the world - the US is not alone here - which makes blaming the Fed for our inflation seem rather naive. After all, one cannot reasonably blame inflation in Europe or China or Japan on the US Fed.

The US is still the world reserve currency which greatly affects other countries. Other countries central banks have to exchange those same dollars with US central banks because most of the world is priced in dollars. And to deal with that they have to play their own currency games. So yes, you can blame their inflation on our US privately held federal reserve. Although not their fault the US dollar is the worlds reserve currency, it is still feds fault for inflating the entire worlds reserve currency.

That's not the way it works--they aren't pegged to the US$. If one country has more inflation than another the currencies will drift apart. (Not that inflation is the only thing that will make them move. The first time I was in Japan a quick ballpark conversion was divide by three to get pennies. The economy has improved a lot since then, now a ballpark is to think of Yen as pennies.)

 

[TV and credit cards]

The White House is reportedly weighing a controversial measure to lower gas prices ahead of midterm elections

Anybody got any assache with that?

 

[ZiprHead]

Gas has risen by about a dollar a gallon over just the last few weeks. I'm not the only one speculating that the oil companies are trying to affect the midterms.

 

[steve_bank]

The sunscreen agreement was always we protect the Arab oil states and they keep oil prices datble.

We went to war to liberate Kuwait and keep Iraq out of Saudi Arabia.

We support Saudi Arabia in their proxy war against Iran in Yemen.

When push comes to shove and we ask for help they say kiss our asses. Another example of ridiculous American foreign policy. Tehre was apathetic picture of GWB standing next to the king on a trip to plead for increasing production.

Maybe we should have let Hussien roll over SA and then go in.

 

[Hermit]

There is worse to come.

Opec+to cut oil production by 2 million barrels per day to shore up prices, defying U.S. pressure

A group of some of the world’s most powerful oil producers on Wednesday agreed to impose deep output cuts, seeking to spur a recovery in crude prices despite calls from the U.S. to pump more to help the global economy.

OPEC and non-OPEC allies, a group often referred to as OPEC+, decided at their first face-to-face gathering in Vienna since 2020 to reduce production by 2 million barrels per day from November.

 

[Jimmy Higgins]

I read that the cuts are misleading as many smaller nations aren't actually meeting the production they are supposed to be supplying, so the actual reduction in production might be negligible. But let it be known, this is all Biden and Newsom's fault.

 

[ZiprHead]

That Newsom guy sure gets around.

 

[steve_bank]

Supply and demns.

Dend goes down during pandemic, less oi puped, ad refineries scale back.

Pandemic relaxed, demand goes up, and refineries can not not meet short term demand.

From reporting China relaxing its pandemic resttictions is increasing demand for gas. A large market.

Irt is not always exactly true of course, but supply and demand generally determine prices.

 

[Patooka]

That Newsom guy sure gets around.

George Soros can't do it on his own.

 

[Oleg]

 

[Hermit]

How could the Democrats block Trump's proposal to buy American oil at $24 a barrel when the Republicans had a clear majority in both houses of Congress?

 

[Derec]

We support Saudi Arabia in their proxy war against Iran in Yemen.

Biden largely ended that, with the result that the Iranian proxies the Houthis made gains.

 

[Derec]

How could the Democrats block Trump's proposal to buy American oil at $24 a barrel when the Republicans had a clear majority in both houses of Congress?

In both of Trump's Congresses (115th and 116th) Reps had a thin majority in the Senate. Far from filibuster-proof.
I am not saying that such a plan existed, just that your statement is not a refutation of it.

 

[Derec]

There is worse to come.

I strongly suspect that the "shore up oil prices" is a smokescreen and also that the announcement has nothing to do with politics.
I think rather that KSA, which is pretty much carrying water for OPEC, especially on spare capacity, is not able to maintain the >10 Mbbl/d output.
Saudi Aramco has been long suspected of overstating their proven reserves. The production relies mostly on a handful of gigafields that have been producing for many decades. Ghawar, still responsible for about a third of Saudi production by itself, has been online since 1951.
There have not been many new oil fields found in recent decades, and Saudi projects are mostly about increasing production from existing wells using a variety of techniques, including fracking. But fracking is like a super straw, and you can drink your milkshake so much faster using it.

So yeah, even if Saudi wanted to help out their funcle Joe, I do not think they really can.

 

[Derec]

That Newsom guy sure gets around.

Why? Was OPEC meeting at the French Laundry?

 

[Hermit]

How could the Democrats block Trump's proposal to buy American oil at $24 a barrel when the Republicans had a clear majority in both houses of Congress?

In both of Trump's Congresses (115th and 116th) Reps had a thin majority in the Senate. Far from filibuster-proof.

In the absence of a filibuster and the presence of a Republican majority in both houses the statement "Democrats blocked Trump's proposal to buy American oil at $24 a barrel" is bullshit.