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@catogrande said in Inflation:
That is all to do with speculation based on fear of a supply chain problem.
From stolen elections, to white supremacist cops, to global pandemics and variants-du-jour, will-he-or-wonât-he employ mustard gas in Ukraine⌠our news industry seems to be composed almost entirely of nothing-but speculation based on fear. This is Who We Are.
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@catogrande It's the Fern so obviously I didn't read the piece, but fracking?
Massive reason for the drop in oil prices. Us went from an importer to one of the biggest exporters. Cue legislative changes rising compliance costs. Also contributed to the rise. Not as much as the fall but still an influence.
I learned yesterday that the original Ford's were designed to run on petrol or alcohol. Ford let the market decide. Imagine the impact on drink driving
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@kid-chocolate it's media, it's always been that way. 'if it bleeds, it leads'; no one cares about good news
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@kid-chocolate it's media, it's always been that way. 'if it bleeds, it leads'; no one cares about good news
That is partly true, partly fallacy. The gatekeepers decide whatâs going to give us nightmares and keep us docile and compliant. Itâs mind-manipulation.
Until two days ago, I did not know this. Why?? âCos most of my news media, who apparently loves blood âcos it supposedly sells more fishwrap, doesnât want to talk about it any more than they want to shine a spotlight on Yemen. There are variable justifications for these refusals of interest, from the colour of their skin and their religious beliefs (âooh, theyâve always been savagesâ) to the same media not having invested years of rabid hysteria into making either of the majordomos in those wars into their latest cartoon Bond villian (âhe stole the election, heâs plotting to take over the world!!â), etc.
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Iâm finding it ironic that those governments that hugely increased their money supplies to counter the effects of their COVID decisions now blame everything except their own actions for the inflation thatâs arrived. Amazing to watch really.
It's like they waited for a convienient crisis to blame it all on. Sad thing is it will work.
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Iâm finding it ironic that those governments that hugely increased their money supplies to counter the effects of their COVID decisions now blame everything except their own actions for the inflation thatâs arrived. Amazing to watch really.
The best thing is their response to inflation is itself extremely inflationary......California giving $400 per car grants for gas price relief
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@frank short answer yes
from dairy farmers point of view
from costs are through the roof
wages up 15 -20 %
fert up 200% +
sprays etc 200% +
some of these have happened over the last two seasons so havnt been adsorbed into this season but next season is going to be rough. eg sprays used may have been at a lower price but will have to pay more next season.
as a rule of thumb most farmers will have an increase in costs off $2 per kg of milksolds plus interest rates going up .
as a general i would expect alot of costs like detergents /cowshed costs/general cost will rise about 25% on what they started this season at for next. -
Once total inventory gets below a certain point, there will be no buffer, the market is going to freak out and oil will go ballistic. Keeping the price artificially low will stimulate demand and suppress supply accelerating the onset of the shortage and price spike. It is the exact opposite of what you would want to do prevent an actual shortage from occurring. So instead of opening up a pipeline to Canada or allowing the market to increase domestic production, they'll reduce the security that the reserve is meant to provide.
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Once total inventory gets below a certain point, there will be no buffer, the market is going to freak out and oil will go ballistic. Keeping the price artificially low will stimulate demand and suppress supply accelerating the onset of the shortage and price spike. It is the exact opposite of what you would want to do prevent an actual shortage from occurring. So instead of opening up a pipeline to Canada or allowing the market to increase domestic production, they'll reduce the security that the reserve is meant to provide.
Itâs not so much the release of the reserves itâs the stated intent. Effectively so far weâve just had an indication that heâs going to say he will release reserves and already it has reduced prices significantly. If it comes to them actually having to follow through Iâd be surprised.
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@catogrande its the Saudis that arent playing ball isnt it, get them into upping production will ease things off at the pump.
While there really is endless buyers for oil in the current world we live in, the theory would be is if the US release reserves it eases pump prices, obviously this will hurt the Saudis so they up thier production slightly to take some heat while maintaining high prices, win win...
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I'm not sure that's quite right. There is no shortage of oil, there are no queues at the filling stations, no restrictions on amounts you can buy. There has been no real increase in the cost of extracting and refining crude oil. The high levels of volatility we've seen recently are down to speculation about future supplies. Given that the oil that is providing the petrol we are buying today was probably refined back when Brent Crude was under $70 a barrel it has never been about costs.
Where I'm sure that you are right is that the real player here is Saudi. If they reduce their prices or turn on the taps a bit more it will have a significant impact and maybe Biden is showing them as much as anyone that he is (maybe) prepared to do something about this spike in prices.
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If they do through with it, it had better work, because if it doesn't, you have the situation of the US govt having to replenish its emergency supplies when it might be $100+ barrel. What could possibly go wrong?
That's assuming that the US just holds a giant tank of oil that they extracted back in 1974 rather than simply holding back a degree of the ongoing output...
Inflation