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I don't the this cause of inflation is settled. Right now it's higher energy prices, in large part caused by the Ukraine war. Then covid recovery caused a big d

by rnk 4y ago

I don't the this cause of inflation is settled. Right now it's higher energy prices, in large part caused by the Ukraine war. Then covid recovery caused a big demand increase, and the shipping industry building ever larger ships that can only go to the LA ports on the west coast led to a delivery shortage, which led to a squeeze, then a worldwide shortage of ICs caused auto manufacturers to have a shortage, the Ukraine war even caused wiring harness shortages. It's one thing after another, those were not caused by the Fed or stimulating spending from the government. I'm sure the government giving people money so they wouldn't lose their lives during covid unemployment was a stimulus. But there were all these other things going too.

thoughtstheseus 4y ago
Yes I agree. There are many causes of inflation. The two principal ones IMO are (1) Supply / demand imbalances (2) Government expansion of the money supply working through the economy.
swader999 4y ago
Canceling Keystone his first day in office doesn't help.
- koshergweilo 4y ago
  I don't see what that has to do with the current shortage as the main bottleneck is with refining oil, not extracting/transporting it
- basch 4y ago
  a pipeline that wouldnt even be operational yet?
- rnk 4y ago
  That obviously did not make a difference now because it wouldn't be in use and the issue seems to be refining more than oil supply.
- thephyber 4y ago
  I think you mean they Keystone XL pipeline. The Keystone pipeline has been running and Biden didn’t cancel it. Keystone XL is a zombie project which abandoned by the development/infrastructure company. It had been stuck in regulatory review and litigation for a decade. Environmental reviews by both the Obama Admin and Trump admin state that Keystone XL would not have lowered gasoline prices. You are pretending like all oil/gas products are fungible, when in reality most refineries in the US are not capable of refining all raw product. Hence “Energy Independence” is purely a marketing term and we still need to export lots of raw material and import other kinds of raw material to match what we are capable of refining.

by rnk 4y ago

thoughtstheseus 4y ago

Yes I agree. There are many causes of inflation. The two principal ones IMO are (1) Supply / demand imbalances (2) Government expansion of the money supply working through the economy.

swader999 4y ago

Canceling Keystone his first day in office doesn't help.

koshergweilo 4y ago
I don't see what that has to do with the current shortage as the main bottleneck is with refining oil, not extracting/transporting it
basch 4y ago
a pipeline that wouldnt even be operational yet?
rnk 4y ago
That obviously did not make a difference now because it wouldn't be in use and the issue seems to be refining more than oil supply.
thephyber 4y ago
I think you mean they Keystone XL pipeline. The Keystone pipeline has been running and Biden didn’t cancel it. Keystone XL is a zombie project which abandoned by the development/infrastructure company. It had been stuck in regulatory review and litigation for a decade. Environmental reviews by both the Obama Admin and Trump admin state that Keystone XL would not have lowered gasoline prices. You are pretending like all oil/gas products are fungible, when in reality most refineries in the US are not capable of refining all raw product. Hence “Energy Independence” is purely a marketing term and we still need to export lots of raw material and import other kinds of raw material to match what we are capable of refining.