The Origins of Post-COVID Inflation

78 posts since 2015....and like 50 of them since last night.... barry interesting...

 

"they were going to do this regardless of whether Covid hit or not"--me (i.e.--"Mr. Global Oil Expert (b/c I declared myself so))"

Troof:

The other members of OPEC+, led by Saudi Arabia and Russia, earlier in the day agreed to cuts that would take 10 million barrels per day offline as the coronavirus pandemic saps demand for crude.

OPEC and allies agree to historic 10 million barrel per day production cut​

 

No one said you couldn't participate--(here's yor trophy! )...

...but it does beg the question...what are you hiding that you must conceal your former ID?

 

LOL! Yeah, bc that would make a lick of difference as to whether it was prompted by Covid (truth), vs "planned regardless of Covid" (your dude's baseless mickey mouse claim.)

 

Nah. I'll take you as a sophomore newbie chump like your newbie handle says, let you prove yourself otherwise.

 

Lol! You *owned* who? When? How???

...and lol @ the childish notion of *owning* someone on a message board.

Bye loser

 

Funny the 5 Trillion pumped into the the economy, the nearly free money to borrow and massive QE did zero to cause any inflation.

It was all from cutting global oil production.

Gotcha.

 

2020 the global price of oil cratered. Even the most ardent leftists here agree supply needed to be reduced and would have been regardless of Trump by OpEC. Our oil producers need oil at about $50/bbl to break even. If that doesn’t happen many go under. As the world reopened demand surged and the price went up.
Russia invading Ukraine caused a giant spike as well.

Your effort to blame Trump for the inflation under Biden based on Oil production cuts is a fail.

 

Yeah the OP explanation is highly simplistic. Oil demand dropped, so OPEC dropping production to support prices is not an unusual thing, whether or not Trump signed some deal.

The other side of this is fracking pre 2020 was a bonanza of output leading to billions of losses for drillers. Ultimately the market adjusted, the number of drillers consolidated and supply was regulated to match demand at a more favorable price

https://www.nytimes.com/2022/07/27/opinion/environment/energy-crisis-oil-gas-fracking.html

https://www.wsj.com/business/energy-oil/us-shale-trump-oil-policy-1a001e6c?mod=mhp

It is quite possible that the oil agreement Trump pushed in retrospect was a bad deal and perhaps exacerbated inflation, and certainly helped line SA pockets, but I’d say at best it was a modest contributing factor given all that was going on.

 

In economics, the system never can never take additions (Covid checks) without producing negatives (higher inflation). Thanks, Trump!

 

Oh Boy.

Oil and Gas Expert…He’s about like the Flat Earther “experts”.

Russia invading Ukraine has Zero to do with the big jump in Oil prices?

I guess you would have been happy to have many of our Domestic Oil producers go bankrupt so we didn’t have the ability to produce that evil fossil fuel.

The economic recovery was going to happen regardless of who was President.

Worldwide economies prompted money like mad, Gov spending shot through the roof, Central banks went to near zero on their rates.
All of these things by themselves increase economic activity and inflation.
Supply chain disruptions on top of it all.

The world reopened and people were flush with cash and cheap borrowing costs but it was all due to Trump getting OPEC to cut production.

What a simplistic and wrong view.