US economy grows 5.2% in third quarter; higher interest rates eroding momentum

So, you're pretty happy with Biden, then?

As for supply chain, the COVID disruption was far deeper than shipping, though that was a problem. It also meant that parts and products we were receiving from foreign sources came from companies that disappeared or had severely cut back - meaning that new sources had to be developed or wait times increased to allow these foreign countries to ramp up.

The reduction in supply of many products was a strong inflationary force.

 

Funny?

Inflation went up because of surging demand as the economy recovered from COVID.

Not always.

And not one cut taxes and increased the deficit like tRaitor tRump.

Not true see above. ^^^^

Which was an affect of an economy recovering from a pandemic.

 

If you add tax and then pay down the massive debt in the sky, you are making those individuals you taxed worse off. You do have to consider that fact that their buying power is reduced. Products will cost a larger percent of their total income.

Of course, we could limit that effect by increasing the taxes of the wealthy or very wealthy, which would not change their lives.

 

Bush conducted significant wars throughout his term and pretty much totally off the books.

Then, he left Obama a crashed economy.

Your idea that THAT is what we should be striving for is just monumentally deranged.

 

Taxes reduce peoples' buying power regardless of what government does with the money. That isn't related to inflation.

 

No I view him as the worst president in my lifetime.

The supply shortage is still with us. It will normalize over time but is still pretty bad.

Reduction in supply always increases prices. Prices follow supply and demand.

 

Yes it was a big contributor, and the main problem was the harbors, which operate as near 100% capacity at normal times, and suddenly they had far more cargo than they would handle. If they operated at 80% in normal times then they would hike it to 100% to handle more, but that was not the case

 

Anything that reduces the buying power of the people is related to inflation - one way or the other.

 

We will always be at the mercy of OPEC+, behind the eight ball so to speak, and regardless how many more barrels a day we could feasibly produce within X number of months, and here’s the reason why;

Domestic production; 13 million bpd
OPEC +; 31 million bpd

Also, your Drill Baby Drill days are over, meaning; Big Oil will no longer drill drill drill in excess of Demand, and as requested by their shareholders.

Last, our refineries were mainly configured to process heavy crude/discounted heavy crude such as Canada’s Western Select, and virtually all the oil produced in the U.S. is light crude, hence unsuitable for heavy oil refineries in the Middle west, and Gulf Coast.

U.S. crude oil exports, mainly light; 4.3 million bpd……December 1st, 2023

U.S. crude oil imports, heavy; 7.5 million bpd, December 1st, 2023

Source; YCharts

Notion; “We should increase our domestic production, and reduce imports”……Makes sense to me, but our oil producers would have to increase their heavy crude production versus light, AND THEY AREN’T DOING THAT.

 

Obviously, I questioned if you're happy with Biden's approach to our inflation problem.

Because it sounds like you are.

 

I think there were a lot of contributing factors. Shipping is one, perhaps especially given problems like the Panama Canal water problem and shipping security in some areas.

But, COVID was around the world, and it is their products that we want. They had to build back production. Some of them were hit harder than we were.

 

No I am not. Sorry.

 

Wuuut?

 

I totally misunderstood your position and deeply apologize.

I'll try to do better with the reading.

 

Quote; If you tax to pay down debt, there is no change in the money supply

Well, there has to be a change in the money supply if Uncle Sam were to reduce its FOREIGN holdings of U.S. Treasuries, and a decrease in money supply would increase the value of the dollar, right?

 

As Biden's economy keeps roaring, both the Republicans and the MSM get more upset. It's as if they want America to fail.

Remember, this is the MSM that universally predicted a recession under Biden, as they also predicted an imminent red wave in 2022. They were wildly wrong in both cases.

Why does the MSM consistently shill hard for Republicans? Oh, that's right. Conservatives own pretty much own the MSM. Plus, the media makes money off of creating a close horse race, not by reporting the truth. If Democrats look like they're running away with it, the MSM feels they have to stop that.

 

You're not paying attention to the MSM if you think they're shilling for Republicans. You'd read, view and listen to a hell of a lot of MSM before you ever heard a good word about
[

 

Its an effect of (When there’s more money than goods that money can buy, the result is inflation)

What, did you think you can only have inflation with a pandemic?

 

Both were $2 trillion. But Trump's tax cut sent the deficit, on top of the fiat currency infusion, sky high.

Spending, per se, isn't inflationary. Also, the infrastructure program, though it sounds like a lot, is spread out over 10 years and the projects are needed.

 

No. The money supply is increased by government spending money it doesn't have and hasn't borrowed. The reverse is deflation and results from government taking money out of circulation (basically throwing it away.) It can't increase or decrease in any other way. Government spending money it received in revenue doesn't have any effect on the money supply. Money was moved from taxpayers to government to holders of debt. No change in the amount of money in circulation.

Right. A decrease in the money supply increases the value of the currency.

The practice of combining prices (supply and demand) with inflation (expansion of the money supply) is confusing and meant to be confusing. You need to separate the two to better understand the issues you are bringing up. What affects prices and what affects the value of currency have different causes, effects and solutions.

In other words, the difference is that prices result from supply and demand and are temporary while devaluation of the value of currency results from what I stated above and is effectively permanent. When you or I spend our money on items that have a price increase, some of it is supply and demand and some is needing to spend more devalued dollars to buy them.

 

Sorry for the bloviation. I was repeating myself. Redeeming a treasury note buys the government a reduction in a liability on the balance sheet. Just like buying an asset it doesn't make money disappear. It just spends some.

The issue is the source of the money used to make the purchase. If the source is revenue then there is no change in the money supply. If it is spending money the government doesn't have and hasn't borrowed then that expands the money supply.

 

No, but in this case Trump used the pandemic as an excuse to pour astronomical amount of new money into the economy, so they went hand in hand.

 

Do tell, How did Trump do that

 

Like this. Perhaps you are too young to remember.

 

Yes inappropriate uses of federal funds arises from all administrations of both stripes. This should have been illegal.