Any hopes of inflation cooling off any time soon are about to be quickly and brutally dashed. After declining for much of the summer, energy prices are heading back up again—and for reasons that have nothing to do with Fed Chair Jay Powell’s interest rate hikes.
After bottoming out on September 26th, the price of benchmark West Texas Intermediate crude oil started rising again, and is now over $93 per barrel.
Brent crude has followed a similar trajectory, moving even higher to close in on $99 per barrel.
These moves in oil lost no time in being carried down to the price of gasoline, with gasoline futures, which began rising in August, increasing that trend until they closed out the first week of October at $2.77 per gallon.
This is already being reflected at the pump, where prices began moving up at the end of September, after falling steadily since early June. The Energy Information Administration now puts the average price of gasoline in the US $3.909 per gallon.
Jay Powell will likely try to contain this new inflation threat with yet more interest rate increases. He will fail, for the same reason his interest rate hikes have failed consistently thus far: this inflation is not being driven by monetary forces.
Didn't you get the memo? Free markets and prosperity and lifting countless millions of people out of poverty worldwide is so five minutes ago. Government can "build back better", remember?
And using the SPR to moderate market prices for oil makes about as much sense as selling dollars to defend the yuan--it does nothing to change the market fundamentals that drive the price.
Now if Dementia Joe got behind some serious expansion of domestic production, THAT would change the price dynamics considerably.
NWO puppet Joebama is doing what he and his family were paid to do by enemies of America, to the tune of $33,000,000 +/-.
#1- Destroy fossil fuel business in America
#2 - Provide Tens of Billions of Dollars for "sustainable energy" that is nothing more than "social science" and will not be a viable source for over a hundred years if then. Below is a great piece explaining Real Science! https://www.realclearenergy.org/articles/2022/10/03/joe_bidens_energy_crisis_856943.html
Crank up nuclear plants, drill and explore, let the free market reign.
Didn't you get the memo? Free markets and prosperity and lifting countless millions of people out of poverty worldwide is so five minutes ago. Government can "build back better", remember?
(Don't slip on the dripping sarcasm)
That strategic reserve isn’t bottomless.
No it is not.
And using the SPR to moderate market prices for oil makes about as much sense as selling dollars to defend the yuan--it does nothing to change the market fundamentals that drive the price.
Now if Dementia Joe got behind some serious expansion of domestic production, THAT would change the price dynamics considerably.
Biden's cheerleaders are going to be dismayed when (if?) they finally learn that willfully stupid immiseration doesn't help with supply shocks.
You lost me with "Biden's cheerleaders/handlers learning."
That they are capable of learning is a most extraordinary claim which requires the most extraordinary of evidences.