Thank Goodness, NYTimes Has The Explanation For Inflation (1 Viewer)

[Sand]

~75% of American families live paycheck to paycheck.  Inflation hits the lower end of the payscale much harder. It's definetly a bad situation and sad the NYT would minimalize it. 

On  relative basis families do have more cash due to government infusion.  However, it doesn't make sense to mention that and not mention that families now have more debt than ever.  So families do have a bit more cash, but they have much more debt service to suck away that cash as it comes in.

This is a lie by omission and very frustrating to see.  

I hope our CFO doesn't see that.  I'd like to get a raise this year.

Very interested what our place does.  The COL floor is like 6%, which is going to make MBAs choke on their breakfast to have to give out.  

 

[Joe Bryant]

On  relative basis families do have more cash due to government infusion.  However, it doesn't make sense to mention that and not mention that families now have more debt than ever.  So families do have a bit more cash, but they have much more debt service to suck away that cash as it comes in.

This is a lie by omission and very frustrating to see.  

Very interested what our place does.  The COL floor is like 6%, which is going to make MBAs choke on their breakfast to have to give out.  

Agreed on the frustration. Oh well.

 

[zoonation]

Reductio ad absurdum, 

 

[Max Power]

On  relative basis families do have more cash due to government infusion. 

Are we calculating this based on the child tax credit being given monthly? There was an article recently that said 25% of families dont have a good understanding of the credit. When tax season rolls around and refunds are minimal, that "infusion" of cash will hit home with people. 

 

[Shula-holic]

Are we calculating this based on the child tax credit being given monthly? There was an article recently that said 25% of families dont have a good understanding of the credit. When tax season rolls around and refunds are minimal, that "infusion" of cash will hit home with people. 

Yep and that's a feature not a bug.  That's why the temporary fix to get over the rough patch is going to be made permanent.  We never roll back the government dole once it expands.

 

[TwinTurbo]

One of the other factors is remote work. The footballguy that used to work out of a big city can work from anywhere now. And they took all their FBG spending power with them to a city with a lower cost of living. That's pretty much played out already though and now it's just runaway inflation across the board. 

The average household is also not flush with cash, unless that definition includes a couple hundred bucks of extra spending power that should have paid off some debt but already got spent on something else. 

 

[Max Power]

Yep and that's a feature not a bug.  That's why the temporary fix to get over the rough patch is going to be made permanent.  We never roll back the government dole once it expands.

Sadly I have a family member (wife's side) who disagrees with me and thinks this monthly payment is a handout. She isnt spending the money wisely and is in store for a real awakening. 

Those large lump sums historically have helped people save money for their unforeseen expenses. Now it's being used on monthly expenses. This is a bandaid fix at best. 

 

[Shula-holic]

Sadly I have a family member (wife's side) who disagrees with me and thinks this monthly payment is a handout. She isnt spending the money wisely and is in store for a real awakening. 

Those large lump sums historically have helped people save money for their unforeseen expenses. Now it's being used on monthly expenses. This is a bandaid fix at best. 

I think a lot of people will be in that boat.  They'll now be reliant on those payments though.

 

[Max Power]

I think a lot of people will be in that boat.  They'll now be reliant on those payments though.

I think that is what the government wants. Keep the poors poor. 

 

[rockaction]

When does my friend that I'm asking this for get his next 1200 dollars to pay off those CC bills?

 

[The Commish]

As pointed out in the inflation thread in July/August, it was going to get much worse before it got better.  Not only did we pump tons of cash into the economy with the $600 payments for over a year, we also printed on the upwards of 25% of our money in 2020.  Throw on top of that taking out around $20-$25B at once in Sept and it's not difficult to see how we got to this point.  Of course, this doesn't even begin to touch on the supply side problems the entire world is facing.

ETA:  "flush with cash" is an incredibly lazy and incomplete way of explaining this issue.  Not sure why anyone expects anything else from US "news" media.  Whatever it takes to get you to click or subscribe is what they're going to put out there.

 

[Sand]

ETA:  "flush with cash" is an incredibly lazy and incomplete way of explaining this issue.  Not sure why anyone expects anything else from US "news" media.  Whatever it takes to get you to click or subscribe is what they're going to put out there.

When journalists are liberal arts majors reporting on hard sciences this is what you get.

 

[The Commish]

When journalists are liberal arts majors reporting on hard sciences this is what you get.

na....this is not unique to individuals.  This is all about the "news media" and their money making tactics.  Unfortunately, many are addicted to it and can't not look.  This is true across all US platforms from the raging liberal hippie sites all the way down to the old crusty  everyone in the world is against me "conservatives".  The approach and desire is identical regardless of topic. 

ETA:  And I'd appreciate you quote the whole thing...the entire message needs to be out there.

 

[FBG26]

When journalists are liberal arts majors reporting on hard sciences this is what you get.

I wouldn't call economics a "hard science".   [physics major here]

But I get your point  

 

[Gopher State]

Exactly.

We've dumped a mountain of cash into the economy via direct payments in the last 18 months and now there are supply issues in several areas of the economy as well.

++ cash chasing fewer goods = inflation.

How is this controversial unless you're just trying to grind your axe?

Except when it comes to gas prices.  Joe has shut down pipelines, drilling on government land, which in turn has made banks shy to fund oil operations.  Drillers are not able to increase operations, upgrade equipment, or want to make the investment to do so. Joe will not release oil from the US reserve, and his requests to his good friends in the Middle East to increase production has fallen on deaf ears.  It is estimated it could cost up to 50 percent more to heat American homes this winter.  Good to go green, but most Americans cannot afford solar or EV’s.  High gas and heating costs will crush the middle class this winter, which in turn will Cush the Dem’s in the mid terms.

 

[The Commish]

Except when it comes to gas prices.  Joe has shut down pipelines, drilling on government land, which in turn has made banks shy to fund oil operations.  Drillers are not able to increase operations, upgrade equipment, or want to make the investment to do so. Joe will not release oil from the US reserve, and his requests to his good friends in the Middle East to increase production has fallen on deaf ears.  It is estimated it could cost up to 50 percent more to heat American homes this winter.  Good to go green, but most Americans cannot afford solar or EV’s.  High gas and heating costs will crush the middle class this winter, which in turn will Cush the Dem’s in the mid terms.

I am unaware of a single US pipeline that's been shut down.  When did this happen?  What federal law is "preventing drillers to upgrade equipment"?  

To the bold, it seems like this says the opposite.  It was from a week or two ago.  Did he reverse direction?

 

[Stoneworker]

I am unaware of a single US pipeline that's been shut down.  When did this happen?  What federal law is "preventing drillers to upgrade equipment"?  

To the bold, it seems like this says the opposite.  It was from a week or two ago.  Did he reverse direction?

Keystone

 

[The Commish]

Keystone

The one taking Canadian oil to processing in Texas or wherever it's supposed to go?  The one that's never been active?  Has to be up and running to be "shut down" no?

 

[Amused to Death]

Keystone

This one? That's not built yet?

The Keystone XL pipeline's developer has halted all construction on the project months after its permit was revoked by the Biden administration.

The pipeline was set to carry oil 1,200 miles (1,900km) from the Canadian province of Alberta down to Nebraska.

 

[Stoneworker]

The one taking Canadian oil to processing in Texas or wherever it's supposed to go?  The one that's never been active?  Has to be up and running to be "shut down" no?

Don't be obtuse. It was in the middle of construction and had its permit pulled by the Biden administration. So yes, most reasonable people would categorize that as being "shut down."

Keystone XL was halted by owner TC Energy after U.S. President Joe Biden this year revoked a key permit needed for a U.S. stretch of the 1,200-mile project.

https://www.cnbc.com/2021/06/09/tc-energy-terminates-keystone-xl-pipeline-project.html

 

[Amused to Death]

Don't be obtuse. It was in the middle of construction and had its permit pulled by the Biden administration. So yes, most reasonable people would categorize that as being "shut down."

Keystone XL was halted by owner TC Energy after U.S. President Joe Biden this year revoked a key permit needed for a U.S. stretch of the 1,200-mile project.

https://www.cnbc.com/2021/06/09/tc-energy-terminates-keystone-xl-pipeline-project.html

So it didn't affect current US oil production?

 

[Amused to Death]

Don't be obtuse. It was in the middle of construction and had its permit pulled by the Biden administration. So yes, most reasonable people would categorize that as being "shut down."

Keystone XL was halted by owner TC Energy after U.S. President Joe Biden this year revoked a key permit needed for a U.S. stretch of the 1,200-mile project.

https://www.cnbc.com/2021/06/09/tc-energy-terminates-keystone-xl-pipeline-project.html

Fact Check-Though Keystone XL Pipeline had secured most of its funding, it was only 8% constructed

I would love to know how stopping it at 8% completion is affecting today's gas prices.

 

[The Commish]

Don't be obtuse. It was in the middle of construction and had its permit pulled by the Biden administration. So yes, most reasonable people would categorize that as being "shut down."

Keystone XL was halted by owner TC Energy after U.S. President Joe Biden this year revoked a key permit needed for a U.S. stretch of the 1,200-mile project.

https://www.cnbc.com/2021/06/09/tc-energy-terminates-keystone-xl-pipeline-project.html

Label it what you want   How does a pipeline that was never up and running impact US oil production in this scenario?  Are we going to the woulda, coulda, shoulda route?  If yes, then just say that and we can move on dismissing it from the current conversation.  And by the way, it was DOA in 2017.  Biden wasn't in office then.

 

[JAA]

The one taking Canadian oil to processing in Texas or wherever it's supposed to go?  The one that's never been active?  Has to be up and running to be "shut down" no?

Don't be obtuse. It was in the middle of construction and had its permit pulled by the Biden administration. So yes, most reasonable people would categorize that as being "shut down."

Keystone XL was halted by owner TC Energy after U.S. President Joe Biden this year revoked a key permit needed for a U.S. stretch of the 1,200-mile project.

https://www.cnbc.com/2021/06/09/tc-energy-terminates-keystone-xl-pipeline-project.html

Thats some incredible revisionist history.

It was already stopped work, then "On January 24, 2017, in his first week in office, President Donald Trump signed a presidential memorandum to revive both Keystone XL pipelines".

If anything, Trump meddled with a previous president for his own intention.

 

[Amused to Death]

Except when it comes to gas prices.  Joe has shut down pipelines, drilling on government land, which in turn has made banks shy to fund oil operations.  Drillers are not able to increase operations, upgrade equipment, or want to make the investment to do so. Joe will not release oil from the US reserve, and his requests to his good friends in the Middle East to increase production has fallen on deaf ears.  It is estimated it could cost up to 50 percent more to heat American homes this winter.  Good to go green, but most Americans cannot afford solar or EV’s.  High gas and heating costs will crush the middle class this winter, which in turn will Cush the Dem’s in the mid terms.

What pipeline, other than the incomplete Keystone pipeline, did Biden shut down?

 

[Stoneworker]

Man, you people are thick.

On his first day in office, President Joe Biden signed an executive order revoking the permit for the Keystone XL pipeline, halting its construction in the U.S.

https://www.politifact.com/factchecks/2021/jan/21/facebook-posts/how-bidens-executive-order-halting-keystone-xl-pip/

 

[Stoneworker]

The sponsor of the Keystone XL crude oil pipeline pulled the plug on the contentious project Wednesday after Canadian officials failed to persuade President Joe Biden to reverse his cancellation of its permit on the day he took office.

https://apnews.com/article/donald-trump-joe-biden-keystone-pipeline-canada-environment-and-nature-141eabd7cca6449dfbd2dab8165812f2

 

[Amused to Death]

Man, you people are thick.

On his first day in office, President Joe Biden signed an executive order revoking the permit for the Keystone XL pipeline, halting its construction in the U.S.

https://www.politifact.com/factchecks/2021/jan/21/facebook-posts/how-bidens-executive-order-halting-keystone-xl-pip/

That's not in question. He did. But its being used a reason our gas prices are currently high. Please make that connection.

 

[the moops]

Except when it comes to gas prices.  Joe has shut down pipelines, drilling on government land, which in turn has made banks shy to fund oil operations.  Drillers are not able to increase operations, upgrade equipment, or want to make the investment to do so. Joe will not release oil from the US reserve, and his requests to his good friends in the Middle East to increase production has fallen on deaf ears.  It is estimated it could cost up to 50 percent more to heat American homes this winter.  Good to go green, but most Americans cannot afford solar or EV’s.  High gas and heating costs will crush the middle class this winter, which in turn will Cush the Dem’s in the mid terms.

What pipeline, other than the incomplete Keystone pipeline, did Biden shut down?

Also 

Approvals for companies to drill for oil and gas on U.S. public lands are on pace this year to reach their highest level since George W. Bush was president, 

https://www.npr.org/2021/07/13/1015581092/biden-promised-to-end-new-drilling-on-federal-land-but-approvals-are-up

 

[Mile High]

The most unsurprisingly thing to happen was that the oil companies were going to raise gas prices after a year of so of cheaper gas. Good thing we gave them tax breaks. 

 

[Amused to Death]

The most unsurprisingly thing to happen was that the oil companies were going to raise gas prices after a year of so of cheaper gas. Good thing we gave them tax breaks. 

Some want to praise the former president for the low gas prices while ignoring the Russia/OPEC price war. They practically gave oil away for free rather than slow production during the global pandemic.

 

[JAA]

Man, you people are thick.

On his first day in office, President Joe Biden signed an executive order revoking the permit for the Keystone XL pipeline, halting its construction in the U.S.

https://www.politifact.com/factchecks/2021/jan/21/facebook-posts/how-bidens-executive-order-halting-keystone-xl-pip/

What is your point?

"On January 24, 2017, in his first week in office, President Donald Trump signed a presidential memorandum to revive both Keystone XL pipelines".

 

[Stoneworker]

What is your point?

"On January 24, 2017, in his first week in office, President Donald Trump signed a presidential memorandum to revive both Keystone XL pipelines".

I'm just posting facts.

The poster said he couldn't think of a single pipeline that Biden had shut down. He was proved wrong. Biden shut down Keystone.

So wtf does Trump have to do with any of this?

 

[JAA]

What is your point?

"On January 24, 2017, in his first week in office, President Donald Trump signed a presidential memorandum to revive both Keystone XL pipelines".

I'm just posting facts.

The poster said he couldn't think of a single pipeline that Biden had shut down. He was proved wrong. Biden shut down Keystone.

So wtf does Trump have to do with any of this?

Thank you for the conversation, but I am out.

 

[the moops]

I'm just posting facts.

The poster said he couldn't think of a single pipeline that Biden had shut down. He was proved wrong. Biden shut down Keystone.

The construction was halted. Isn't that different than shutting down an existing pipeline?

 

[Joe Bryant]

ETA:  "flush with cash" is an incredibly lazy and incomplete way of explaining this issue.  Not sure why anyone expects anything else from US "news" media.  Whatever it takes to get you to click or subscribe is what they're going to put out there.

Thank you. I do think it's interesting though on the lazy and incomplete angle. I tend to think he's not being lazy there and he truly believes that. Sometimes a bubble becomes so strong you can't even see or acknowledge the things outside the bubble. 

And I think too, some of the reason this is notable is it's the NY Times. Not a random blog. Or even a major network that has drifted over the years to one side or the other. 

 

[jm192]

I just assumed inflation is due to free money.  We gave out all of these free checks.  And as COVID has settled down somewhat--consumerism just keeps climbing.

 

[Gopher State]

What pipeline, other than the incomplete Keystone pipeline, did Biden shut down?

What company would even waste their time planning a pipeline, Joe would kill it.  The message Biden is sending don’t waste your time with oil.  I believe their was talk of a pipeline and refinery in SD, but no one will finance anything to do with oil. He killed investment in oil..  Biden owns the high gas prices, he’s in charge, ok no new pipelines, etc., how about releasing some oil from our reserves?  We’re going green so why save it.  We know what the Middle East thinks of Joe, so no help their.  
 

I fine with high energy prices, I have solar on my two homes and have an EV, but the average Joe making 15.00 hour is hurting from gas prices.   My good friend in CA is crazy mad about gas prices, I told him I never be ahead on what I spent for solar and EV vs oil.  Again midterms will be interesting.

 

[The Commish]

Thank you. I do think it's interesting though on the lazy and incomplete angle. I tend to think he's not being lazy there and he truly believes that. Sometimes a bubble becomes so strong you can't even see or acknowledge the things outside the bubble. 

And I think too, some of the reason this is notable is it's the NY Times. Not a random blog. Or even a major network that has drifted over the years to one side or the other. 

Well, this is the problem we see in our media outlets these days right?  "Belief" belongs in an opinion piece.  Actual journalism doesn't require the insertion of belief.  State the facts as we know them and move along.  It makes for less lengthy articles and doesn't provide much opportunity for clickbaity kinds of things, but that's what we should demand from our news outlets IMO.  The NYT is not immune to this new social media like age.  They've adapted and are "joining them" since they obviously can't "beat them".  

 

[GoBirds]

I might be cynical but I take it further than that.   I feel it's not sloppy, I view it as more a deliberate attempt to deflect blame off the current POTUS and/or try to make this a positive for his administration.   To me that seems more what they are after.

 we have a winner folks. 

 

[The Commish]

That's not in question. He did. But its being used a reason our gas prices are currently high. Please make that connection.

Given the laughing emojis, I think it's safe to say we are headed to "woulda, coulda, shoulda" territory...time to move on.  A pipeline that was never up and functioning is clearly a major contributor to the problem in that world.

 

[The Commish]

What company would even waste their time planning a pipeline, Joe would kill it.  The message Biden is sending don’t waste your time with oil.  I believe their was talk of a pipeline and refinery in SD, but no one will finance anything to do with oil. He killed investment in oil..  Biden owns the high gas prices, he’s in charge, ok no new pipelines, etc., how about releasing some oil from our reserves?  We’re going green so why save it.  We know what the Middle East thinks of Joe, so no help their.  
 

I fine with high energy prices, I have solar on my two homes and have an EV, but the average Joe making 15.00 hour is hurting from gas prices.   My good friend in CA is crazy mad about gas prices, I told him I never be ahead on what I spent for solar and EV vs oil.  Again midterms will be interesting.

There's a problem with your narrative

https://www.reuters.com/business/energy/white-house-asks-us-oil-and-gas-companies-help-lower-fuel-costs-sources-2021-10-13/
https://www.npr.org/2021/07/13/1015581092/biden-promised-to-end-new-drilling-on-federal-land-but-approvals-are-up

 

[Amused to Death]

Oil prices post third weekly drop after volatile week

NEW YORK, Nov 12 (Reuters) - Oil prices fell on Friday, wiping out gains from the previous session, on worries that the U.S. Federal Reserve will accelerate plans to boost interest rates to tame inflation.

Brent crude futures fell 70 cents, or 0.8%, to settle at $82.17 a barrel. U.S. West Texas Intermediate (WTI) crude fell 80 cents, or 1%, to settle at $80.79 a barrel.

Both benchmarks fell for a third consecutive week, hit by a strengthening dollar and speculation that President Joe Biden's administration might release oil from the U.S. Strategic Petroleum Reserve to cool prices. On a weekly basis, Brent fell 0.7%, while WTI declined 0.6%.

"This week has been a good reminder for oil markets that prices are not only affected by the supply-demand trajectory, but also from monetary policy forecasts and by forms of government intervention," said Louise Dickson, senior oil markets analyst at Rystad Energy. "Higher interest rates would provide even further support to the dollar and even more downward pressure on oil prices."

U.S. Energy Secretary Jennifer Granholm said on Monday that Biden could act as soon as this week to address soaring gasoline prices. read more

"We believe that whatever the announcement is will only have a short-term impact on price, but because of the uncertainty the market is pulling back a little bit," said Phil Flynn, senior analyst at Price Futures Group.

U.S. energy firms this week added oil and natural gas rigs for a third week in a row. The oil and gas rig count, an early indicator of future output, rose six to 556 in the week to Nov. 12, its highest level since April 2020, energy services firm Baker Hughes Co (BKR.N) said on Friday. read more

 

[Shula-holic]

The most unsurprisingly thing to happen was that the oil companies were going to raise gas prices after a year of so of cheaper gas. Good thing we gave them tax breaks. 

I realize this is likely pointless but you do realize that oil companies can't set gas prices, correct?  If I'm wrong, I need to liquidate all I have and put it into the stock of the one who can because it would be surer than the sun coming up tomorrow.

 

[djmich]

The construction was halted. Isn't that different than shutting down an existing pipeline?

Not shut down yet but related