0.1% inflation is a "major, major issue???"
Your comments are totally predictable based on your partisanship.
It's far more likely the Fed will cool on the interest rate increases based on the new data. Despite what some people on the left are saying, I don't believe the Fed is purposely trying to create a recession.
They are trying to moderate inflation, and it appears what they are doing is working (despite the Saudis trying to stick the knife in one last time).
I’m wondering if you have a clue what you’re talking about. Inflation “cooled” to only a 0.1% month over month rise. Sounds like you’re in the 2021 “inflation is transitory “ crew. Gas is on the rise and we are going into summer. A one month reprieve is hardly righting the ship.
Inflation IS a partisan issue because government policies greatly affect inflation. In all fairness, Covid had a great influence on the economies of both President's. Trump presided over an economy that was exploding and only held back by a lack of employees. Covid hit and blew that up.
Biden, of course, inherited Covid but also an economy held together with shoestrings with only essential workers at work, an economy by delivery and an entire demographic upheaval. Where economic numbers were historically low, only an overall economic collapse would have made them worse - they could only go up and they have - but at the cost of inflation followed by higher interest rates.
Spending under Trump did skyrocket but due to Covid emergency spending. Biden continued that but also undertook multiple other massive spending programs that have resulted in our inflation, high rates and slowing economy. The only reason inflation isn't worse is because Covid and Covid spending has run out - but replaced by massive social spending that isn't economically beneficial. The infrastructure spending hasn't really started but buys 20% less, now.
Here, lets talk about how much of an issue inflation has been.
Overall since Nov. 2020, the CPI is up 14.7% - this compares with 7.1% over Trump's entire term. Over the entire year prior to the election, CPI was up just under 1%.
- This means $1.00 Nov. 2020 is now worth $0.853
- This means your $50,000/year job is now the equivalent of a $42,650 job
- lf you made $15/hr and got a $5/hr raise, it's now the same as a $17.06/hr job
Overall CPI inflation is up 5% over the past year, February's 1 year inflation was 6%, so THE RATE OF INCREASE IN PRICES IS SLOWING. Overall consumer prices are NOT dropping (that's called DEflation).
Gasoline is down significantly at 18% since last year so the rate of inflation should continue to slow overall since the price of gasoline affects everything. TVs and large appliances are down since the supply chain catastrophe is slowly unwinding.
Other than gasoline, most everything we need for survival has inflated with no guaranty of a significant overall decline. Merchants are far more hesitant to decrease prices unless competition and/or business levels force them to.
Some specific commodities-market-based items, such as eggs, have deflated significantly since Jan. 1 but most other items have not. The cost of housing and electricity hasn't dropped at all but continues to inch up and will likely continue unless there is a significant recession.
So, Econ. 101 will tell you a 1 month inflation reading means little. Longer term rates mean everything. Unfortunately, the damage is done so anything more is twisting the knife.
And gasoline is going back up now too.
I guess you could “blame” them for wanting to keep price control on their countries most valuable asset and the product that essentially pays for the entire government. They have absolutely no sympathy for the US and how they released 350M barrels from the SPR in a year, just because they felt like it.
SA is smart. They know that US production is going to max out over the next few years. OPEC controls the pricing now, and they know it.
I am curious if anyone with way more knowledge in the area than me…. What are the consequences, if any, of countries like China, SA, Iran, Brazil and other countries, deciding to not use the US $ as the currency oil is traded on? It doesn’t seem like it can be any kind of positive for the strength of the US$, but it seems like there could be a multitude of ripple effects down the road.
As long as technology for hybrid, electric and hydrogen vehicles progresses and costs start to equate with petroleum engines, the need for oil won't be as great because supply will decline more slowly than demand.
Get EV Semi's on the road - even if just local, short haul routes, and huge amounts of petroleum will no longer be needed.
There are currently 1 users browsing this thread. (0 members and 1 guests)
Bookmarks