You know, I almost fell for it. No, not the fact that COVID played the biggest role in our current inflationary spiral. And it had absolutely nothing to do with Vladimir Putin and his little war with Ukraine. I thought it was simple economics. You print more money, the money therefore becomes less valuable because there is more of it in circulation, and voila! You get inflation, because it takes more of the money to buy the same goods. The goods didn’t go up in price, the money went down in value.
I think I was wrong.
While from an economics point of view, I think the above example is valid and holds true most of the time, I’m beginning to wonder if that was the case here. Sure, Donald Trump printed trillions in getting the COVID stimi’s out to everybody. And yes, Biden did the same thing a little more than a year ago when he got those $1,400 checks to everybody. And yes, Biden added to the mess with the $1.9 trillion infrastructure package. But I’m starting to think that the reason inflation is still so bad is something else altogether.
It was the gas prices. And it was Biden’s plan all along.
I don’t think this was a mistake on Biden’s part. I watched some YouTube videos of Biden on the campaign trail and in debates back in 2020. He was adamant that he was going to bring the fossil fuel industry to it’s knees. He even bragged, “No drilling for oil or gas on federal lands. No offshore drilling. No fracking on federal lands. No Keystone XL Pipeline.” He has gone the extra mile to raise the price of gasoline on purpose. And the reason is simple. He’s in bed with the electric vehicle manufacturers. Oh, he thinks it’ll help save the planet (it won’t). And he thinks that it will help wean America off it’s insatiable desire for gasoline and cars (again, it won’t).
So, Biden starts increasing the price of gas by making it much more difficult for the oil and gas companies to refine the raw material. And what happens? There’s less gasoline and natural gas to go around, and a nation that just a couple of years ago was “energy independent” and was actually an exporter of fuel, becomes beholden to Saudi Arabia, Russia, and even Iran.
That is why the price of oil and natural gas products have skyrocketed. It was his plan all along. And what happens when the price of gasoline and diesel gets jacked to the moon? Truckers find it more and more difficult to fill up and still make a profit on their runs. Shipping companies that have to fuel large cargo ships to ply the oceans aren’t making a profit. Airlines can’t transport people and goods as cheaply as they could. And that causes shortages. Shortages causes price increases. And you have shortages of baby formula, sriracha, toilet paper, and lots of other goods.
America runs on oil. America gets products to the store shelves with oil. There is no other way to do it. And when you put obstacles in the way of getting those goods to market, you are going to cause inflation. And how much is caused by Biden printing all of that money? Well, he got $1.9 trillion from Congress earlier this year. Currently, as of May 25th, there is $2.277 trillion in cash floating around the United States. So, Biden’s little “rescue plan” added a whopping 45% to the nation’s cash supply. Yes Virginia, that is going to cause inflation!
But the real culprit in all of this is the price of oil that Joe Biden is manipulating by not letting the oil companies drill, by not allowing coal companies to mine, and by not encouraging an “all of the above” strategy when it comes the United States’ energy policy.
It’s just one more snafu you can add to Joe Biden’s already lengthy resume!
Carry on world…you’re dismissed!