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Here’s the Best Combined Explanation for Surging Inflation: Cascading Idiocy

06/20/2022
in Economy - Business - Finance, Main, Politics & Government, RECOMMENDED
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Here’s the Best Combined Explanation for Surging Inflation: Cascading Idiocy

USA: Let’s go over a timeline to see how inflation started and escalated. Let’s also look at absurd excuses.

Cascading Policy Errors

1: Covid hit. Lockdowns that were arguably excusable in the beginning, lingered far too long, affecting far too many businesses. Policy error one.

2: The Fed reacted with QE far to excessive and far too long, continuing all the way until March 2022. Policy error two.

3. Free Money from Congress. Again excusable in the beginning, but the second round by Trump was excessive and the third by Biden was preposterous. Policy errors three and four with Biden getting far more of the blame.

4. Demand shift to goods away from services as a result of the above three items.

5. The demand shift to goods happened when there were fewer workers due to continuing lockdowns.

6. The US meddled in Ukraine in 2014 setting the stage for war. And Ukrainian President Volodymyr Zelenskyy kept insisting to the bitter end it wanted to be in the EU and NATO, both red flags to Putin. Accurately label Zelenskyy’s statements a policy error. And blame Putin for the war, so that makes policy errors five, six, and seven counting US meddling in 2014.

7: Let’s not leave Angela Merkel out of this. Kowtowing to the Greens, Merkel mothballed Germany’s nuclear plants creating greater dependence on energy from Russia. This is policy error number eight.

8. And what about Biden and the US Greens telling Big Oil it wanted to put them out of business. Guess what? Energy investment plunged. Policy error number 9.

9. Inane sanctions in response to the war busted supply chains in energy. Policy errors ten and eleven by the US and EU.

10. Finally, please consider Biden’s stupid energy policy to rising oil price. Instead of taking actions to increase oil supply, Biden blamed oil companies, threated tax hikes, threated FTC involvement, blamed gouging, then with refinery capacity already crippled demanded more ethanol from corn. The ethanol demand will increase need for fertilizer, increase summer smog, and drive more small refiners out of business.

I am not sure how many policy errors there are in point ten. Pick a number.

 

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