The scarcity of fossil fuel particularly oil and gas has fueled every period of inflation since WWII, but no one, except Joe Biden, has ever purposely encouraged its scarcity, and in that way generated a forty year spike in inflation.
Adam Smith, in 1774 published a two volume study entitled “On the Nature and Causes of the Wealth of Nations”. Among many other economic insights, Smith proposed three basic laws of economics: the “Law of Self Interest”, the “Law of Competition”, and the“Law of Supply and Demand”.
It is that last law…of “supply and demand” which relates to inflation. “Inflation” refers to the persistent rise in prices of goods and services. The term “inflation” refers to the price of goods which rise and are: “inflated”. The prices of products “blow up or inflate” while the value of your money shrinks. Inflation means each dollar in your purse can buy less and less. Dollars you put away in your bank account shrink by 6% each year.
When the supply of money (coins, scrip) and the goods and services that money can buy are in balance, the value of money remains stable. That has been the situation or the last 40 years. But Joe upset that balance. Supply and demand control the value of money. Large amounts of money in circulation (like Joe’s multi-trillion dollar sending sprees) reduces the value of YOUR dollars. Biden dumping trillions into the economy reduces the purchasing power of the dollars you have with such difficulty earned or saved. He spends you loose!
Have you noticed those egg prices lately? Six ($6) bucks for a dozen eggs! That’s 50 cents per egg. In the last administration not long ago you could buy eggs for less than 10 cents per egg. What about bread? Coffee? Gasoline at the pump? All are much higher in price than they were two years go.
Joe Biden did it!! Everything Joe touches seems to turn to excrement. Beginning with Afghanistan, the open border disaster, inflation,recession, high interest rates, violent crime, turn-style “justice”, expanding and prolonging a horrible war in Ukraine, and and the most recent scandal—-letting the Chinese spy balloon fly over our nation’s military defenses—-all proclaim this old man’s incompetence out loud. But it is inflation that hurts the poor and middle class and small businesses more than his other scandalous acts.
His incredibly unwise decision to undermine the fossil industry sparked a massive inflationary spiral. To curry favor with the Democrat left wing climate zealots (extremists) Biden’s first act as President was to cancel all new oil leases on federal lands. He called for phasing out natural gas in power plants by 2035. He canceled the permit for the Keystone pipeline. He signed other similar anti-energy executive orders.
Producing adequate amounts of fossil fuels requires long term investment. If investors are informed by government that their product will be “outlawed” by government in a few years…who will invest in drilling new wells, purchase new fracking equipment, build new oil refineries— which take decades to develop? No one!
Today and into the future fossil fuels will remain essential to a modern nation’s economy and its military posture. Today, fossil fuels COMPRISE 98% OF OUR ENERGY USE. Fossil fuels heat our homes, power our electric grid, fuel our trucks, trains, planes and automobiles, run our manufacturing industries, and our businesses. It is a universally essential product. It is insane thinking that we can eliminate its use in ten years. Even electric vehicles run on fossil fuel. Almost 90% of the electricity that all electric automobiles run on is generated by fossil fuels.
The scarcity of fossil fuel particularly oil and gas has fueled every period of inflation since WWII, but no one, except Joe Biden, has ever purposely encouraged its scarcity, and in that way generated a forty year spike in inflation.
President Joe Biden’s attack on fossil fuel caused a massive spike in fuel prices. Since the price of fuel is tied to everything else—- all prices rose. But not content with destroying our four decade long monetary stability, Joe went ahead to compounded his disastrous act by instituting a foreign policy to sanction Russian oil making oil and gas even more costly and only spreading inflation to Europe and the rest of the world. Then like a drunken sailor on shore leave he formulated and then passed several monster “trillion dollar spending bills” on borrowed money which dumped more cash into an over heated economy and acted like volatile fuel dumped into a trash bin fire. Even his insane “open border policy” which continues to illegally admit millions of undocumented into the nation has made inflation worse. The hordes of braceros and laborers from South America can not be employed (legally). The million’s who entered and are now living here can not increase our productivity, but do increase demand for all goods and services. This alone increases INFLATION, and makes living more expensive for us all.
Inflation reduces real wages, lowers living standards, and destroys investment of business opportunities.
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