The Federal Government economists are ideologically blinded (though I will not call them morons). Here's some comments I posted at Mark Waulk's 'stack:
I’ve been gently trying to explain that the expanding money supply while bad, is only one aspect of the inflation equation and that gas prices are actually MUCH more important. Can you imagine what inflation would be if gas was $1.50/ gallon? Basically there wouldn’t be hardly any.
Yes, the consumer price hit at the pump is clearly very bad, but the reality is that fuel is a major input in the consumer cost of food. High inflation due to money printing would be a demand-side problem (too many dollars chasing too few goods - but if people save the money, the prices of goods would not rise...), which is a small part of the problem we have. We have a far more serious supply-side problem (due to energy costs and supply chain restrictions), and the inelasticity of demand (people HAVE to buy food, and a few other key items, basically regardless of the cost) is a far bigger reason for the rising prices.
If the money supply expands, but people don't spend it, inflation would be very low (they would save the money and if demand does not increase, prices won't either). People HAVE to buy food and fuel to live, and the price of those is not going up because of too much money causing higher demand, the prices are going up because of Brandon and his Globalist cabal's artificial supply restrictions (they are forced to not save the money).
This is all going to get ALOT worse before it gets better, unless they somehow reduce the price of fuel and maybe even subsidize fuel and fertilizer costs - economists would say this would cause inflation, but because the input costs would be reduced the prices would go down).
Awesome column today Jeffrey. I can't understand how inflation could be down 0.2 percentage points to 8.3 percent. I mean, the price I pay for regular gas is now $4.65/gallon, up substantially from even two weeks ago - I bought three gallons to fuel my lawnmower and it was more than I paid two years ago to fill up my entire car.
I have to think this is all ideologically driven, and that whoever is running the Biden administration is not stupid but malicious. If there was serious leadership from either party the US would have opened the oil and gas industry back up as soon as Putin invaded Ukraine. For both domestic and security reasons all the climate considerations should have been put aside for a time in an effort to solve the energy crisis in the US, and in Europe where Putin owns a lot of countries because he owns the energy supply. It looks more and more that the whole point of the Biden administration's policies is to impoverish middle class Americans. Beggars are easier to please.
It is pure sophistry to suggest that 8.3% is a cessation or a dampening of historic inflation.
We are not anticipating a recession - we are in one.
Absurdly high inflation, rising interest rates, growth slowing, supply chain problems unabated, no policy that even remotely impacts any of this and a ridiculous attempt to cast blame on COVID and Putin.
Joe Biden's War on Energy, initiated on his first day in office, and the damage done to crude oil production was gigantic driving 13.1 MM barrels of daily oil production to 10MM bbl/day.
This was the genesis of inflation in the Biden Era.
He owns this and the only way to effectively combat it is to undo the damage which he will not do.
The Federal Government economists are ideologically blinded (though I will not call them morons). Here's some comments I posted at Mark Waulk's 'stack:
I’ve been gently trying to explain that the expanding money supply while bad, is only one aspect of the inflation equation and that gas prices are actually MUCH more important. Can you imagine what inflation would be if gas was $1.50/ gallon? Basically there wouldn’t be hardly any.
Yes, the consumer price hit at the pump is clearly very bad, but the reality is that fuel is a major input in the consumer cost of food. High inflation due to money printing would be a demand-side problem (too many dollars chasing too few goods - but if people save the money, the prices of goods would not rise...), which is a small part of the problem we have. We have a far more serious supply-side problem (due to energy costs and supply chain restrictions), and the inelasticity of demand (people HAVE to buy food, and a few other key items, basically regardless of the cost) is a far bigger reason for the rising prices.
If the money supply expands, but people don't spend it, inflation would be very low (they would save the money and if demand does not increase, prices won't either). People HAVE to buy food and fuel to live, and the price of those is not going up because of too much money causing higher demand, the prices are going up because of Brandon and his Globalist cabal's artificial supply restrictions (they are forced to not save the money).
This is all going to get ALOT worse before it gets better, unless they somehow reduce the price of fuel and maybe even subsidize fuel and fertilizer costs - economists would say this would cause inflation, but because the input costs would be reduced the prices would go down).
Awesome column today Jeffrey. I can't understand how inflation could be down 0.2 percentage points to 8.3 percent. I mean, the price I pay for regular gas is now $4.65/gallon, up substantially from even two weeks ago - I bought three gallons to fuel my lawnmower and it was more than I paid two years ago to fill up my entire car.
I have to think this is all ideologically driven, and that whoever is running the Biden administration is not stupid but malicious. If there was serious leadership from either party the US would have opened the oil and gas industry back up as soon as Putin invaded Ukraine. For both domestic and security reasons all the climate considerations should have been put aside for a time in an effort to solve the energy crisis in the US, and in Europe where Putin owns a lot of countries because he owns the energy supply. It looks more and more that the whole point of the Biden administration's policies is to impoverish middle class Americans. Beggars are easier to please.
It is pure sophistry to suggest that 8.3% is a cessation or a dampening of historic inflation.
We are not anticipating a recession - we are in one.
Absurdly high inflation, rising interest rates, growth slowing, supply chain problems unabated, no policy that even remotely impacts any of this and a ridiculous attempt to cast blame on COVID and Putin.
Joe Biden's War on Energy, initiated on his first day in office, and the damage done to crude oil production was gigantic driving 13.1 MM barrels of daily oil production to 10MM bbl/day.
This was the genesis of inflation in the Biden Era.
He owns this and the only way to effectively combat it is to undo the damage which he will not do.
JLM
www.themusingsofthebigredcar.com