Presidents cannot "control" markets, but they absolutely influence them all the bloody time. They influence them when they want to and when they don't want to.
When Brandon --first day on the job -- began the war on energy as defined by cancelling the Keystone XL Pipeline, banning exploration in ANWR, and halting all leases and auctions on Federal lands, the game changed immediately.
All routine capital spending necessary to support the Oil Patch stopped. Boom!
Within 90 days, the US went from energy independence and being a net exporter of crude with 13.1MM bbl/day to less than 10MM bbl/day.
Once we lost the global pricing power of having excess crude to sell into the market, prices for crude and its derivative gasoline went up. Within a short period of time, gas prices doubled.
This is not theory. This is info gleaned at the pump every second of every day.
When did inflation throw off the shackles of Fed policy, 2% performance, and 4% "worst case" scenarios? Right then.
This genie is not going back in the bottle. [Oddly enough, the Oil Patch is going to thrive on $100 oil shortly. Weird.]
The economic forecast is far worse than you write.
1. We are looking at pathetic GDP growth -- maybe a major recession.
2. We will see rising interest rates. Guaranteed. Already printed.
3. We are in the midst of huge inflation -- CPI, PPI grossly understate what is really happening. Go to the meat counter at your local grocery. Build something. We will see double digit inflation by year end.
4. Brandon will never reverse his energy policies and therefore high energy costs as a core component of inflation is here forever.
5. Labor is going to demand an increasing level of compensation in accordance with inflation and those labor increases will drive inflation even higher.
6. What is the admin's response? Flood the country with literally trillions of dollars. Hugely inflationary.
The Fed Chair is the only adult in the entire country. Nobody is thinking about deficits, the National Debt, or balancing the checkbook.
China and Russia are going to test the US. Count on it. Going to get very sporty. Very, very, very sporty.
We are at this vulnerable point in US history because of the Pandemic and the worst leadership ever. Perfect Storm-ish, but real AF.
Hire a clown, expect a circus. The circus is in town, y'all, and elephant scat is everywhere. We are nowhere near the end of the beginning.
Presidents cannot "control" markets, but they absolutely influence them all the bloody time. They influence them when they want to and when they don't want to.
When Brandon --first day on the job -- began the war on energy as defined by cancelling the Keystone XL Pipeline, banning exploration in ANWR, and halting all leases and auctions on Federal lands, the game changed immediately.
All routine capital spending necessary to support the Oil Patch stopped. Boom!
Within 90 days, the US went from energy independence and being a net exporter of crude with 13.1MM bbl/day to less than 10MM bbl/day.
Once we lost the global pricing power of having excess crude to sell into the market, prices for crude and its derivative gasoline went up. Within a short period of time, gas prices doubled.
This is not theory. This is info gleaned at the pump every second of every day.
When did inflation throw off the shackles of Fed policy, 2% performance, and 4% "worst case" scenarios? Right then.
This genie is not going back in the bottle. [Oddly enough, the Oil Patch is going to thrive on $100 oil shortly. Weird.]
The economic forecast is far worse than you write.
1. We are looking at pathetic GDP growth -- maybe a major recession.
2. We will see rising interest rates. Guaranteed. Already printed.
3. We are in the midst of huge inflation -- CPI, PPI grossly understate what is really happening. Go to the meat counter at your local grocery. Build something. We will see double digit inflation by year end.
4. Brandon will never reverse his energy policies and therefore high energy costs as a core component of inflation is here forever.
5. Labor is going to demand an increasing level of compensation in accordance with inflation and those labor increases will drive inflation even higher.
6. What is the admin's response? Flood the country with literally trillions of dollars. Hugely inflationary.
The Fed Chair is the only adult in the entire country. Nobody is thinking about deficits, the National Debt, or balancing the checkbook.
China and Russia are going to test the US. Count on it. Going to get very sporty. Very, very, very sporty.
We are at this vulnerable point in US history because of the Pandemic and the worst leadership ever. Perfect Storm-ish, but real AF.
Hire a clown, expect a circus. The circus is in town, y'all, and elephant scat is everywhere. We are nowhere near the end of the beginning.
JLM
www.themusingsofthebigredcar.com
#Brandon
S&P 500 +9.6%? Is that after the trough/bottom? Or from 12/31/21 to 12/31/22?