Sure, cap the rates and then nationalize the company. That will fix everything.
What I heard is warehouses are full of inventory and ships are used to keep the inventory. So no point in placing orders for more manufactured goods.
The issue is over-stocking and not because of shift from goods to services. Btw, what kind of services are the article referring to? Travel? Massage? Restaurants?
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Exactly. Now we wait and see if companies hold inventory or start discounting.
He continued: “I also talked about the fact that inventories were way up. And I left New York, and I spent time in different parts of the country, in our stores and in competition, and looking at syndicated data, and recognized that U.S. retail overall, we’re looking at historic highs with inventory levels.”
The inventory story is only going to get worse given how long it takes product to get from manufacturer to retailer. It’s even longer if you consider raw materials to retailer.
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We have inflation because demand > supply.
- Gas-tax holiday would make gas cheaper. That increases demand.
- Student debt forgiveness gives people 1 less payment to make every month, so they’ll have more money to create more demand.
- Reducing tariffs will reduce the price of things which will increase demand.
It’s amazing that everything he’s considering would increase demand which would increase prices. I thought reducing inflation was his top priority?
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Somewhat pessimistic (but probably realistic) piece that talks about why there will be sustained high inflation for the next decade.
Today, energy supply problems are primarily due to a lack of sufficient capex and development over the past several years for oil production, gas production, refineries, pipelines, LNG terminals, electrical grids, and even things like keeping existing nuclear power plants open. Then add a war to the mix to accelerate and magnify the problem. This lack of sufficient capacity will likely take years of capital-intensive work to solve.
If the US Federal Reserve in particular, due to its size and due to its global reserve currency status, reaches a point where it is unable to continue raising interest rates and reducing its balance sheet due to liquidity problems in the Treasury market or credit market, while inflation is still a problem, then the quorum of central banks of the developed world will basically be in checkmate, and the global financial system will be in a different regime than it has been operating with during the entirety of the post-WWII period.
I’m in the inflation will moderate soon enough camp but I’m just some dude on the Internet 
#3 might help, but just supposedly @1-1.25% out of 8.6%.
I’m hearing the shelter part of inflation number will show up with a delay.
That’s assuming anyone can get approval for more drilling, building pipelines, and building refineries. The keystone pipeline was stopped.
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Seems like even if keystone pipeline was built it wouldn’t have a drastic impact on gas price?
“ Russia is the world’s second-largest exporter of crude oil, according to the U.S. Energy Information Administration. But the U.S. imported an average of 209,000 barrels of crude oil per day from Russia in 2021, according to the American Fuel and Petrochemical Manufacturers, as well as 500,000 barrels per day of other petroleum products. This amount makes up 3% of U.S. crude oil imports and about 1% of the crude oil processed in U.S. refineries.”
“ Keystone XL, an expansion of an existing North American pipeline, would have carried 830,000 barrels of crude oil from Alberta, Canada, to Nebraska daily at its peak. At the time Mr. Biden halted its construction, the $8 billion expansion was only about 8% complete, according to Reuters.”
We imported 200k a day from Russia and Keystone would have provided 4x that much. If the argument is losing 200k a day from Russia is driving up the cost, then obviously increasing by 800k a day would lower cost by more than the Russia impact.
The author also argues 800k/day wouldn’t impact pricing then claims releasing 30M barrels from the strategic reserve will. The 30M is a one-time event. We’d be getting that much oil every 37.5 days from the keystone pipeline. How fast do they think the strategic reserve release will happen?
Also, do you really think there’s any hope of Biden approving any drilling, pipeline, or refining projects?
“‘ Even if the Biden administration were to immediately offer new oil leases to drillers, it wouldn’t help with the costs Americans are bearing today. It would take six to 10 years for oil from a new lease to hit the global market, Kieve said. “
We’re suffering from the Obama EPA years. The EPA added 33,000 pages of rules during the Obama years. Guess who pays for the cost of compliance with all of those regulations?
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Current import is 3.8M b/d. Adding 830K would comprise 17% of the total import from Canada. Is that enough to reduce price?
Article mentions total of 60M barrels from International Energy Agency. 830K b/d at peak only tells us the capacity of pipeline. It doesn’t tell us how much Alberta can send.
Energy analyst Rory Johnston, founder of the Commodity Context newsletter, said oil production is expected to only grow about 100,000 bpd a year going forward, meaning more export capacity would not necessarily mean more barrels crossing the border.
Higher property tax + higher mortgage rate = Higher rent 
= higher inflation
Are you going to claim a 17% increase in supply doesn’t impact price? The US is releasing 30M barrels. I double other countries are going to release oil from their strategic reserve to export it to the US. They are going to consuming it domestically.
Canada has been exporting that oil to China. If there was a pipeline, it’d be more cost effective to export it to the US.
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Electric vehicles are the wrong answer for a country in recession. Nobody needs $60k cars … they will just keep up their old gas guzzlers and drive less. Promoting EVs is promoting poverty and recession. Something the Democrats love doing… creates more Democrats
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That is what I thought. Wondering why TSLA bulls are so ecstatic.