re: CNBC: Fed again approves 0.75-point hike in response to rapid inflation

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Didn't they rely on Russia for their energy?

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The Russia/Ukraine war affects not just immediate supply chains, but global prices(as does OPEC and other production disruptions).

But again, it's not that simple. more socialist Canada has only slightly higher gas prices yet lower inflation? If this correlation was the primary causation, we shouldnt be seeing that

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They're not printing and giving away trillions of dollars like we are

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Have you seen their "ghost cities?"

or followed their own stimulus plans?
LINK

They literally have been running a massive stimulus program for decades.

I think people continue to want to try and axiomatically align the causes and solutions on global inflation along the largely domestic political fault lines they are comfortable with and that simply doesnt neatly work when you drill down into it.

Higher gas prices and high inflation have some similar but many different drivers. As has been broken out in this thread.

Oil and gas prices are driven by an open market, not the oil companies as the administration would love you to believe. They are price takers, not price makers.

Regardless, just for fun here are the individual years with the highest gas inflation in the last 50 years:

1980 - Jimmy Carter (38.97%)
2021 - Joe Biden (36%)
2022 - Joe Biden (35.58%)
1974 - Gerald Ford (35.36%)
1979 - Jimmy Carter (35.34%)
2000 - Bill Clinton (28.4%)
2011 - Barack Obama (26.45%)

It's almost like there's a theme there, and it seems to be a party that is openly hostile toward oil.

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1. Continually pushed for more checks in the mail during COVID while everyone was at home not spending money

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Trump handed out multiple stimulus and PPP

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4. Attack on oil and gas (energy is the number 1 driver of inflation)

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Current levels of US oil production have little to do with the sitting president (historically shitty prices, future WTI prices much lower than current, covid lockdowns beginning in 2020/decreased demand and subsequent supply, oil and gas bankruptcies, etc)

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5. Increasing government regulation which increases the cost of everything.

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What does this have anything to do with steel and other materials/goods imported from overseas?

its like you people are so politically mesmerized that everything you perceive as good is due to your fave political guy where everything bad is due to your least fave political guy

again, this shite is happening all over the world, not just in the USA

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Remind me who was president in 2020 and started sending out checks and committed to rent moratoriums?

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It was a mistake then and it was an even bigger mistake to keep playing COVID well into 2022.

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Current levels of US oil production have little to do with the sitting president (historically shitty prices, future WTI prices much lower than current, covid lockdowns beginning in 2020/decreased demand and subsequent supply, oil and gas bankruptcies, etc)

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So you think that a president coming into office and flat out saying "I'm going to shut you down" and signing a bunch of executive orders on day 1 leads to those energy companies to say "yeah, I'm going to keep pumping billions into new infrastructure and production?", and do you not think that the market that sets the price doesn't react to that type of stuff?

I can't tell if you're just trolling at this point.

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its like you people are so politically mesmerized that everything you perceive

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The current person witting in the WH stealing from your future is the one who swore to end fossil fuels.


That rock you live under must be air tight.

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So you think that a president coming into office and flat out saying "I'm going to shut you down" and signing a bunch of executive orders on day 1 leads to those energy companies to say "yeah, I'm going to keep pumping billions into new infrastructure and production?", and do you not think that the market that sets the price doesn't react to that type of stuff?

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Should i post the graph again? The US is the current leading producer of crude oil, in the world. Also, US production is trending to surpass peak production levels (2019 levels) in the next year. How fast do you expect production to return to pre-pandemic levels? Do you realize breakeven prices are currently much higher for every producer? ie it much more expensive to drill a well today than it was in 2019. Future prices are also much lower in the future than they are today.

On top of all this, interest rates are going up so cost of capital will be much higher for oil and gas companies

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Should i post the graph again

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Just answer the damned question instead of deflecting. f Even a high schooler knows investment backs under the current progressive attacks.

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But again, if you want to play this game you need to similarly explain why countries like France, Switzerland, Norway, and Canada have experienced less inflation despite similar stimulus spending, lockdowns, and even more robust safety nets?

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The only industrialized country that spent a higher percentage of its GDP than the United States on Covid-related fiscal stimulus was Singapore.

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Probably because we subsidize the shite out of European nations through military welfare and have different Fed policies than they do.

That was easy.