Why is the inflation rate so painful?

[KenH]

We were exporters of fossil fuel, now, again, we are importers.

"Fresh on the heels of a new U.S. oil production record and establishment of the U.S. as the world’s top liquefied natural gas (LNG) exporter, this week the Energy Information Administration reported that the U.S. exported a record amount of crude oil in 2023.
...
The net impact of continued U.S. export growth has been a steady decline in net crude oil imports. From 2004 through 2007, U.S. net crude oil imports averaged more than 10 million BPD. In 2023, that number was 2.4 million BPD, which was the lowest level since 1972."

- excerpt from From Ban To Boom: U.S. Set New Oil Export Record In 2023

 

[Van]

"Fresh on the heels of a new U.S. oil production record and establishment of the U.S. as the world’s top liquefied natural gas (LNG) exporter, this week the Energy Information Administration reported that the U.S. exported a record amount of crude oil in 2023.
...
The net impact of continued U.S. export growth has been a steady decline in net crude oil imports. From 2004 through 2007, U.S. net crude oil imports averaged more than 10 million BPD. In 2023, that number was 2.4 million BPD, which was the lowest level since 1972."

- excerpt from From Ban To Boom: U.S. Set New Oil Export Record In 2023

This effort to deny the obvious is mind boggling.

Same vein as Con-a-lot economics was against fracking and now is for fracking. If you believe that I have a bridge for sale.

If gas was plentiful, why am I paying over $5.00 per gallon? Restrictions on supply and increasing taxes on every gallon sold.

Here is the plain, unabigous truth, Bribe-O-nomics brought economic misery to working class Americans and no about of "don't believe you lying eyes" disinformation will alter reality.

If you still believe this government's sources, the roof was too slanted for Secret Service to safely deploy there. If you believe that I have another bridge for sale.

 

[Van]

"In the months leading up to the Covid-19 pandemic, U.S. oil production hit an all-time high of just below 13 million barrels per day (BPD). As the pandemic unfolded, demand collapsed, and production followed. By May 2020, oil production had dropped by more than 3 million BPD to 9.7 million BPD.

Since then, demand has recovered to pre-pandemic levels. Oil production, however, has only partially recovered. The most recent data available from the Energy Information Administration (EIA) shows current U.S. oil production at ~11.6 million BPD — still 1.4 million BPD short of pre-pandemic production. This shortfall is a major factor that led to the run-up of oil and gasoline prices over the past year." [from the internet]

It appears both sides of the issue have their "own" facts and talk in circles.

 

[KenH]

If gas was plentiful, why am I paying over $5.00 per gallon?

I have never paid close to $5.00 per gallon for gasoline here in south central Arkansas. The current price at the Murphy USA station where I usually fill up is $2.99 per gallon.

 

[KenH]

[from the internet]

I provided a link for what I posted. Can you?

 

[Van]

I have never paid close to $5.00 per gallon for gasoline here in south central Arkansas. The current price at the Murphy USA station where I usually fill up is $2.99 per gallon.

I did not say the average price was $5.00, I said I pay that in California due to blue state maleficence.

 

[KenH]

I did not say the average price was $5.00

I didn't say that you did.

 

[Van]

I provided a link for what I posted. Can you?

One ploy is to question the source, then claim it is no good. Why not address the issue.

 

[Van]

Does gas cost $5.00 in California due to blue state malfeasance?

Under the Biden/Harris administration, the inflation rate spiraled up from about 2% to about 9%, but has come back down to a little over 3%, or just a little higher than the about 2% under Mr Trump's administration.
So why are we feeling so much pain?

First inflation is cumulative. Four years at an average of say 2.5% adds to 10% total, but four years at an average of say 5% adds to about 20%.

But that is only part of the answer. In order to rein in inflation the Fed raised interest rates resulting in the average mortgage rate going from less that 3% to over 7%. That does not sound too bad, but average monthly mortgage cost rose from just under $1000 per month to over $2000 per month. Ouch!

So the economic pain index costs up about 100% with the anti energy, open border, feckless foreign policy with more citizens dying from overdose during the administration than from our citizens during the Viet Nam War.

 

[KenH]

One ploy is to question the source, then claim it is no good. Why not address the issue.

1) I did address the issue. I quoted from an article that provided a link to.

2) You are horrible at debating, Van. All you pretty much do is just blather, like you are just pulling it out of your hat. You provide very little of substance in our debates.

 

[KenH]

Does gas cost $5.00 in California due to blue state malfeasance?

I have no use for the big government polices of the Democratic Party(Team Blue) or the Republican Party(Team Red), and I do not vote for either party's candidates. They have created a $35 trillion dollar national debt; pretty much all of it during the 21st century.

 

[KenH]

Does gas cost $5.00 in California due to blue state malfeasance?

Under the Biden/Harris administration, the inflation rate spiraled up from about 2% to about 9%, but has come back down to a little over 3%, or just a little higher than the about 2% under Mr Trump's administration.
So why are we feeling so much pain?

First inflation is cumulative. Four years at an average of say 2.5% adds to 10% total, but four years at an average of say 5% adds to about 20%.

But that is only part of the answer. In order to rein in inflation the Fed raised interest rates resulting in the average mortgage rate going from less that 3% to over 7%. That does not sound too bad, but average monthly mortgage cost rose from just under $1000 per month to over $2000 per month. Ouch!

So the economic pain index costs up about 100% with the anti energy, open border, feckless foreign policy with more citizens dying from overdose during the administration than from our citizens during the Viet Nam War.

You are also poor debater, Van, because you do badly at presenting your case and then just start repeating your previous posts.

 

[Van]

Folks anytime a poster starts addressing their opponent, i.e. you are a terrible debated, and starts addressing how something is presented, rather than addressing what was presented, that poster knows he or she has run into the wall of reality.

"In the months leading up to the Covid-19 pandemic, U.S. oil production hit an all-time high of just below 13 million barrels per day (BPD). As the pandemic unfolded, demand collapsed, and production followed. By May 2020, oil production had dropped by more than 3 million BPD to 9.7 million BPD.

Since then, demand has recovered to pre-pandemic levels. Oil production, however, has only partially recovered. The most recent data available from the Energy Information Administration (EIA) shows current U.S. oil production at ~11.6 million BPD — still 1.4 million BPD short of pre-pandemic production. This shortfall is a major factor that led to the run-up of oil and gasoline prices over the past year." [from the internet]​

 

[KenH]

Folks, anytime a poster starts repeating his previous arguments within the same thread, such a poster knows that he has bumped up against reality and can go no further.

 

[Van]

Folks, anytime a poster starts repeating his previous arguments within the same thread, such a poster knows that he has bumped up against reality and can go no further.

Yet another against the person logical fallacy argument. I repeat presentations on the thread topic to return discussion to the topic, rather than allow the thread to be derailed into you are as bad as me tit for tats.

 

[Van]

Profligate federal government spending being accommodated by the Federal Reserve by monetarizing it is definitely inflationary.

Again, an effort to shift the blame from the Administration to nameless bureaucrats. During WWII, the government spent big time, but the effort was to put people to work on what was needed to win the war. Now the spending is to compensate people for not being productive, to spend time in endless years of "higher education" where they learn the technology of the past, and the world view of the past.

Communism brought 70 years of misery to the Soviet Union, yet College students today seem to buy the Marxist screed. Yet the BLM trained Marxist leaders took the money and bought big houses! The colossal con job by those who do not produce spawns waste, destruction and anarchy.

 

[KenH]

Yet another against the person logical fallacy argument.

 

[KenH]

Again, an effort to shift the blame from the Administration to nameless bureaucrats.

 

[Van]

Again, an effort to shift the blame from the Administration to nameless bureaucrats. During WWII, the government spent big time, but the effort was to put people to work on what was needed to win the war. Now the spending is to compensate people for not being productive, to spend time in endless years of "higher education" where they learn the technology of the past, and the world view of the past.

Communism brought 70 years of misery to the Soviet Union, yet College students today seem to buy the Marxist screed. Yet the BLM trained Marxist leaders took the money and bought big houses! The colossal con job by those who do not produce spawns waste, destruction and anarchy.

 

[Van]

One more log on the inflation pain fire is the rising delinquency rates for borrowers. Currently they are higher than the pre-pandemic level. For example an added stress of for working people is the rapid increase in vehicle prices, up about $8,000 since 2000. Used cars up from about 20,000 to about 28,000 and new cars up from about 40,000 to about 48,000.

So another double whammy, it costs more to buy, and then more to borrow to buy.