It's probable that inflation has peaked although not absolutely conclusive. Based on the US securities markets which tend to be right more often than they are incorrect, I would bet that we are past the peak in inflation.
So the gasoline index went down, so what? The volatile price of gas was one of the largest reasons inflation went up in the first place. Did you really think $5 a gallon was sustainable?
Form your keyboard to God's ears. But i get it. Thats why I say its semantics and the argument is silly. Both sides can rightfully claim being right depending on how its presented.
I disagree, if you go back and look at my first post, what set ET off, I said the July data was good. That's all I've said in this thread. Not sure how that could be wrong or open to other interpretations.
Yes, and more. Oil and gas prices are headed much higher. The Biden Administration saw gasoline as the one place where they could substantially attack inflation without the help of the fossil fuel companies. They took their shot successfully for political reasons, the upcoming midterms. Selling down the SPR is by 180 billion barrels over 6 months is no small thing as it places the US less safe and less secure in an extremely volatile and dangerous world let alone if we have natural disasters here in the US. It took 4 months for the increased supply of oil to finally be effective and noted in the CPI report. Unfortunately, the Biden Administration has done nothing to repair the damage they are and have done to the fossil fuel companies, big oil in this case. As a result, this action has a temporary result, a one-trick pony. Without a compromise in policy to accommodate the oil companies, gas and oil are headed to much higher prices. We've seen the domino effect over the last 18 months. Inflation is only going to get worse. Again I ask, what do you think is going to happen when Biden's executive order expires and in 2023 when big oil is hit with a 15% minimum tax along with much higher royalties paid to the federal government to produce oil and gas?
You 100% lost credibility with "the Biden Administration has done nothing to repair the damage they are and have done to the fossil fuel companies, big oil in this case." It's like you have no clue what's really going on in the world and just make stuff up, hoping no one calls you out ... Here's some recent stories about the "damage" Biden has done to fossil fuel companies ... https://www.washingtonpost.com/world/2022/08/08/oil-companies-profits-inflation/ Oil companies reap unprecedented profits as Americans struggle to pay for food and gas The world is ablaze and the oil industry just posted record profits. It’s us or them | Hamilton Nolan Exxon and Chevron Report Record Profits on High Oil and Gas Prices Big oil's quarterly profits hit record $50 billion, with BP yet to come
This is nothing new. The Biden Administration has been bitching for months about Big Oil sitting on their profits from the high prices. This is not the issue. The issue is the Biden Administration has done nothing to convince Big Oil to invest in the long-term future of energy. It's a two-edged sword. Biden wants to shut down Big Oil in favor of renewables and has taken actions to do so since the day he was inaugurated. His new fiscal spending law will do long term in spades for renewables and penalizes the fossil fuel industries. However, he knows he needs Big Oil to invest in the future which they are not willing to do without a long-term agreed upon timeline, 10 years requested, hence the record profits. Joe Biden offered Big Oil 3 years, 36 months, in the spring which offer was rejected by Big Oil. He refused to give Big Oil a desired 10-year seat at the table which would encourage Big Oil to spend more on increased production. Until this happens or until Biden nationalizes Big Oil completing the US conversion to socialist Venezuela, nothing is going to change dramatically in oil production. The US is destined to have higher and higher oil and gas prices which means high gas pump prices along with higher fuel prices to run our homes. The Biden Administration can change their fossil fuel policies; however, those worshiping their climate god have stood in the way and stopped Joe Biden from making the necessary changes. Big Oil offered a slate of things they want to invest long-term. Joe Biden has not given them any of their requests even after asking for their input. The new tax and spending bill cemented this arrangement, so we are basically screwed in 2023. We'll be screwed after Joe Biden can no longer sell the US SPR in 2022 as well.
Right now some deflation would not be bad since inflation is so high. Good inflation is 2%, not 8.5%.
Hey Biden prop up boy, how about convincing oil companies to spend money on new rigs, equipment, and labor while at the same time telling them their time is done and that our focus will only be green energy? These things take years to build and establish. Taking away areas they can prospect and drill and threatening the industry is not going to help push them to increase output.
Point was, big oil is not damaged, they are doing the best they ever have, but I don’t blame them if they are Not reinvesting as a business choice. The have plenty of unused leases if they want to explore. I think it has more to do with the number of car makers have said they will go all (or almost all) electric in the 2030 to 2035 time frame… the writting is on the wall for them, and they know it. In the mean time, I can’t blame them for trying to squeeze every cent they can out of us … that’s just capitalism at work, bro.
Agreed on 2% vs 8.5%, but that doesn't mean you want deflation. You want a negative second derivative not a negative first derivative of prices.
Like I just said, their time IS almost done. They know that, they don’t need Biden to tell them. If they choose not buy more equipment and develop more oil fields, it’s probably a smart move on their part, right? Why drill more when the shortage gives them record profits? Spend more, work more, hire more employees … for less money? LOL. No thanks. that’s capitalism, baby, enjoy it.
Rents in certain areas have jumped for many reasons. Cheap money increased demand and pushed prices. More corporations got into the rental game decreasing supply. More people bought properties to ARB&B decreasing supply. People leaving certain areas moving to others (Florida) increased demand.
On this, we completely agree. The big oil companies are behaving as capitalists who aren't going to play ball until they get what they want out of the socialist Biden Administration. It's pretty simple, reduce regulations, stop pushing banks not to lend, give a 10-year timeline, and then get the hell out of the way. Unfortunately, the new tax and spend law ended all hope of this happening. It'll take change elections and new leadership to fix the mess Joe Biden will be leaving behind.
The problem isn't capitalism of the big oil companies. The problem is the socialism of the Biden Administration with government picking winners, renewables, and losers, fossil fuels. In this case big oil. I would like nothing better than to enjoy capitalism in energy, baby! Instead, big oil and the American people as a result are under the boot of Biden Administration socialist oppression.
Disagree. The idea of “produc[ing] as much oil as possible and to maximize profits” flies in the face of basic supply and demand economics. Producing as much as possible would drive the price down while increasing costs… dumb idea. A business’s goal is to produce the right amount to maximize profits, which means selling at a peak price while keeping costs low. Let me put this way, pretend I’m a big oil company exec who just saw my most profitable quarter ever … with fewer workers, lower supply, and lower expenditures… what are you going to say to me to convince me to hire more employees, expand my operations, increase my costs, and increase supply, all while driving the price of my own product down?
