The Dark Side Of Bidenomics: 16.2% Bidenflation

Why do you always come back to ask something which was explained 5 mins ago? Its annoying.

 

So you actually think that inflation can occur in a barter economy?

BTW: http://www.politicalforum.com/index.php?threads/what-is-inflation-and-what-causes-it.612887

 

So you're saying that you don't care that you're spending so much more money for the same things?

Perhaps you live in some elitist bubble but here in the real world the common man cares about that sort of thing

 

Of course it can. Today you can exchange 2 squirrel skins for a bottle of wine, but next month wine is in short supply, and they want 5 skins.

 

Okay so current prices: The price of wine is 2 skins. The price of skin is 1/2 wine.

Next: the price of wine is 5 skins. The price of skin is 1/5 wine.

One price went up (wine). Another price went down (skins). No general increase.

 

Tell that to the squirrel hunter who suddenly has to pay more than double for the same wine. Tell him that nothing changed and that its all in his head.

 

I didn't say it was in his head. I observed that the price of his skins went down from 1/2 wine to 1/5 wine. However, while the price of skins went down, the price of wine went up. So there is no GENERAL RISE in prices.

 

Good lord, you are not getting it. Assume its a remote village, and they are not getting supplies and store owners are running out of stock, so they raise prices knowing the demand is there and supply is not. That's demand-pull inflation. Even drug dealers are aware of it. That was exactly what happened with lumber prices after Covid, and prices quadrupled, and it happened with pretty much everything due to supply problems.

 

So let's say the remote villagers raise the price of wine from 2 squirrel skins to 10 squirrel skins. That means that the price of wine has increased fivefold, but the price of skins has decreased fivefold as well. Again, no OVERALL rise in prices.

BTW, this might be a better thread to continue the discussion: http://www.politicalforum.com/index.php?threads/what-is-inflation-and-what-causes-it.612887/

 

We are ****ed.

 

Yes, the value of skins (money) has decreased aka purchasing power decreased. That's inflation, and if the village is not getting any supplies, its not just wine, but everything.

 

The price of skins went down but the price of wine went up. No inflation, because there is no net increase in prices.

 

Inflation comes from too much money, and too much money comes from the kind of interest rates the Fed maintained through the Trump years and which the Fed is now remedying under the Biden administration. Unfortunately for Biden, this is likely to create some kind of downturn or recession before election day 2024, and he will of course be blamed for something that is totally outside of the purview of the Executive Branch of our federal government.

 

Gas here in California is 5.24 a regular gallon at ARCO - a discount station/ minimart.
Chevron across the street was 5.31 for regular.
When people complain about prices, tips, gas, housing, etc., my comment is "This is not the Trump years anymore.".

 

The increase in gasoline prices was a direct result of Biden’s anti-fossil fuels policies. The people who pull the Biden puppet strings will raise them again if he’s re-elected. If Gavin Newsom is elected, which could be more likely, the government will ban the manufacture of gas powered automobiles. He’s already got that draconian policy in place in California.

California is the source of many bad ideas. It’s also the source for many politicians who hold high office. Why do we elect them? I have no idea.

I hate California. It’s a cancer on the wellbeing of humanity. Life there is hell with high taxes, sky high housing prices and rampant crime, homeless and drug abuse. Yet, for progressives, it’s the model for the nation.

 

I would love to finance some bill boards on the busiest freeways:
Superimposed over a homeless camp, a store being looted, etc.
"They say you voted for this. Ain't ballot harvesting grand?"

 

Federal land only makes up about 10% of domestic oil production . . . and most federal leases are going unused anyway. You've been lied to. The idea that more federal leases would solve the problem is dumber than a lobotomized hamster.

 

Well of course they're spending more than they're taxing.
The current Democrats have a big spending plan but they don't have the political courage or will to actually increase taxes to a level high enough to pay for the increase in spending.

This drives inflation, because the Federal Reserve ends up being the one that has to buy all that debt, trying to keep the interest rates the government has to pay on the national debt from rising, which everyone knows would be bad, so inflation is seen as the less worse of two bad options.
But of course now inflation is reaching such high levels it's getting harder for the Federal Reserve to keep doing this and they've decided they can't keep holding interest rates down as much as they have before, because it would add too much additional inflation.

Unfortunately there are many on the Left who do not seem to care too much about the worry of inflation, or who even like the idea of inflation. (This is how it's always been, even 10 years ago) There are many on the Left who do not care about the National Debt, probably because they view it like a giant credit card and expect someone else (not them) will end up paying the bill.

 

You buy leases for exploration so you can A: find the oil; B: come up with an estimate of how much oil there is; C: approximately the expected cost for Bbl #1, then it goes the the bean counters to decide if it is cost effective.
You need to read up.

 

I have. And federal leases are ALREADY cheaper than private options. But thank you for admitting that it is dumber than a sack of hammers to think that the solution is more federal leases.

 

Fine. You fish for the one fish in the lake, and I'll fish for the school.

 

I appreciate your irrelevant analogy.

 

When you are a naive college student votes Democrat, often having your ballot harvested, you have no idea of what it will be like when you graduate. You don’t know that if an ordinary American citizen, that you are behind the Transsexuals, illegal aliens, gays and whatever other sex the progressives have invented. The Blacks and the Hispanics are also behind those groups. If you are a White male or recently, a female athlete, you are at the bottom of the pile.

 

Can't wait to read this thread and have all the progressives explain how none of this is Biden's fault even though he's in charge of everything...

 

And that is after monetizing part of the debt resulting in less valuable dollars. About a Trillion last year.