He needs better marketing. The U.S. is doing remarkably better than many other countries. He needs to show that some people pay as much per liter of gas as Americans do per gallon. And yes, he needs to make the case that it's Congress' job to tax windfall profits, capital gains and eliminate loopholes for the super rich.
What Should Biden Do About Inflation in the US?
- Thread starter Sol Rosenberg
- Start date
Bristol-Cruiser
Super Anarchist
What no one mentions is that inflation is good for reducing the national debt in debt/GDP ratio terms. Borrow more valuable dollars today and pay back with devalued dollars in the future.
billy backstay
Backstay, never bought a suit, never went to Vegas
Debt is a form of financial time travel. When a country takes on debt, its pulling future demand into the present to spur economic activity. In a growing world, the impact is buffered because future growth will offset the present debt so even big numbers may not matter as much as they seem. Inflation caused by excessive debt is 'transitory' and tends to be very aggressive. That's the kind of inflation that the FED is well suited to address. Some of that is what's occuring. But, as has been pointed out, the last six months of inflation has already wiped out most of the stimmy checks so that money is already soaked up. That's not what's going on.
Personally, I believe we're witnessing the recoil from excessive globalization. The opposite of efficiency is resilency. The more specialized something is, the less able it is to respond to stressors. Global warming doesn't kill all life - it reverses evolution and kills specialized life first. The end of global warming isn't a dead world, its a world full of jellyfish.
If you buy that premise, there's really not much to be done right now. The inflation will continue as globally we seek out a new equilibrium. The overall loss of optimization means the final state is going to be higher than the initial state - in other words, THIS inflation isn't transitory. The cracks in the Chinese supply chain were already evident and now they're gaping. Other countries are moving in to fill in spaces.
The US energy policy is NIMBY/BANANA based - which sounds bad but, in truth, NAFTA-II means that you have to draw the box bigger. Mexican/American relations have never been better.. for Mexico. They're the US 'work around'. The new global order is shuffling for seats at the supply-chain table. America picked its primary dance partners years ago - Japan, S.Korea, Australia, Mexico, and Canada. If you're in those countries, you'll do ok. Its never pleasant - but it'll level out fastest and you'll be first to put this in the rear view mirror. The UK will probably get to join soon enoughand we have secondary deals with people like Vietnam and Malaysia. We invited the Indians but they're probably going to make their own deals - as they should frankly.
What should Biden do? Stake out a "Biden Doctrine on Energy." Be explicit. That would help, just to provide stability. Past that, he should just try and be "Compassionate Joe" - its what he does best. He wasn't elected to be "Decider Joe" - he's always been bad at that. He's a senator at heart.
The indians, quite frankly, can go to hell. They continue to support all sorts of human rights abuses and they have Russia's back in every case because they develop weapons together. I'm sick of playing nice with those assholes. Plus the Saudis.
Sol Rosenberg
Girthy Member
- Thread starter
- #25
Anything the US can do to <ahem> cut the Saudis off at the knees should have been done long ago.
phillysailor
Super Anarchist
- 9,276
- 4,047
Simplify the tax code so that the gagillions spent on tax lawyers, lobbyists, accountants and politicians can be saved by companies who can just understand easily what their tax burden is, pay it and then sharpen their focus on productivity.
Gouvernail
Lottsa people don’t know I’m famous
That is an oversimplification which borders on being false.
The oil producers cut back on production because:
* they can make more money by selling less material at a higher price.
* they can use the shortages and higher prices as part of a plan to convince the public to remove regulations and therefore lower the cost of production
* Business is about making money
El Borracho
Meaty Coloso
Just listen to all the whiners here. India is our enemy! China is stealing and cheating! Oil producers are greedy! Biden is responsible! Immigrants! Pathetic.
Change creates opportunity. Put down your Starbucks, log out of YouTube, get busy and stop with all the whining and blaming. Sheesh!
Change creates opportunity. Put down your Starbucks, log out of YouTube, get busy and stop with all the whining and blaming. Sheesh!
Is it a "financial bubble" due to easy money and stimulus, or is it the ongoing effects of supply chain disruptions and war?
Getting the diagnosis right is critical to getting the prescription right. If it's the former, then tightening the credit markets till we all cry uncle is the right prescription. (but don't talk to me about overall debt, as our money IS debt. No debt, no money, no modern economy)
But if it's the latter, supply disruptions, you need to deal with the disruptions. Oil shortage? Grab Saudi by the short and curlies and get them pumping, make noises about more pumping in the US, etc. Food? Pull the US fallow land out of environmental reserve and start growing massive amounts. Ongoing Covid issues (Jhyna!) - See what we can do within NAFTA to start moving manufacturing more local to our 'hood.
It's likely a bit of both, so you'll need to wring some of the cash out of the system too.
Getting the diagnosis right is critical to getting the prescription right. If it's the former, then tightening the credit markets till we all cry uncle is the right prescription. (but don't talk to me about overall debt, as our money IS debt. No debt, no money, no modern economy)
But if it's the latter, supply disruptions, you need to deal with the disruptions. Oil shortage? Grab Saudi by the short and curlies and get them pumping, make noises about more pumping in the US, etc. Food? Pull the US fallow land out of environmental reserve and start growing massive amounts. Ongoing Covid issues (Jhyna!) - See what we can do within NAFTA to start moving manufacturing more local to our 'hood.
It's likely a bit of both, so you'll need to wring some of the cash out of the system too.
El Borracho
Meaty Coloso
Do you feel better now that you have assigned blame and threatened violence?
What would you have done differently as Sec. Treasury?
Jules
Super Anarchist
With corporate profits rising with shortages, it would seem a no-brainer to seriously take a look at price gouging and if found, do something about it. I won't be holding my breath.
giegs
Super Anarchist
- 1,039
- 541
Ha. Piss off. The only passable reason that jackass got confirmed again is because he's going down with the ship.
Not keeping interest rates so low for so long while also drastically increasing the money supply would have been a good start. Powell provided the fuel for this particular dumpster fire.
Not for nothing
Super Anarchist
Inflation is based on what people are willing to pay, if you sold something, you would keep raising the price till people would stop buying, As far a gas. over the weekend 100's of power boating (with up to 5 outboards motors) were powering up and down the ditch (ICW) so gas must be cheap for power boats?
It's all based on supply and demand Exxon stock/profits are up around 50% YTD
justsomeguy!
Super Anarchist
Commie.
Movable Ballast
Anarchist
That would require the US to be self sufficient for oil products. Oh wait... We were under the previous administration... Ooops.
Movable Ballast
Anarchist
Get a FED chair that understands that if you flood the market with Trillions of dollars you make the value of the currency "worth less".
Clearly Dr Yellen doesn't get this simple math...
Clearly Dr Yellen doesn't get this simple math...
El Borracho
Meaty Coloso
I see. We should all be so fortunate to have such hindsight. Who knew economics was so simple?
Today the yield curve inverted for the second time this year. What is your cure for the coming recession combined with high inflation? Don’t forget the unemployment numbers.
d'ranger
Super Anarchist
- 29,893
- 4,879
New leases issued is up, production is up and predicted to be at least 5% more than the former guy. Couple of points:
1. Your partisan slip keeps showing
2. RW talking points don't hold up well.
3. You aren't very good at this political stuff - maybe stick to sailing?
giegs
Super Anarchist
- 1,039
- 541
Hindsight? You're kidding, right? Or is your bubble that robust? This was a topic back in 2018 when Powell let Trump bully him into not moving rates. Criticism of the Fed in this vein isn't a new thing. Their reckless policy is a major part of why we're here. Any explanation of inflation that doesn't address that is a non-starter.
The current strategy of reducing money supply while chipping up rates will probably be successful at winning the global game of hot potato. Without social safety nets supported by progressive taxation, winning that game will make existing wealth inequality more pronounced.
