Doctor CamNC4Me wrote: ↑Sat Oct 05, 2024 6:11 pm
This is why inflation happened:
https://www.reddit.com/r/the_everything ... cV0fwR8t21
Tl;dc - Mark Cuban explains that in 2020 as the demand for oil and gas plummeted Russia and Saudi Arabia got into a price war. The oil companies convinced Trump to interface with the Saudis and Russians to cut production to inflate the price of oil. Inflation then pegged to the gradual increase in oil prices, as that underscores the cost of everything.
I’d add Trump also made money too cheap by bullying the fed into essentially giving the dollar away for his term - he overheated it. Basically, Trump is a massive damned idiot supported by massive damned idiots and wealthy manipulators.
- Doc
I think Trump did the right thing in the first case. Remember the context — the drop in demand for oil has been so extreme that the price of oil went negative. US oil producers could easily have been run completely out of business in a short time. Our land production needs higher prices to be profitable.
The inflation spike was worldwide and primarily due to a combination of a few things: pent up demand while people saved more and spent less during the pandemic, continued disruptions in world wide supply chains, restricted supply from the Ukraine war, and short-term price gouging.
The post housing collapse recovery was steady, but had to be nursed along by crazy low interest rates. It was surprising that inflation didn’t show up earlier.
No US President could prevent the international spike that happened. The US economy did better than most in recovering from the spike without sending unemployment through the roof.
That’s not to say that the Trump tax cuts weren’t inflationary or that his pre-election pressure on the Fed wasn’t either. But I think it’s hard to single those out two things as being more significant the the other causes at work.