Today we cut the crap about the impact of energy, specifically rising energy prices, and inflation.
1. The Biden admin made some bold energy moves — cancelling the Keystone XL pipeline, mothballing drilling/leasing/auctions on public lands, cancelling ANWR development, generally pissing on the leg of the energy sector — immediately upon taking office and they have had a negative impact on the price of energy and gasoline in particular.
2. Inflation — under control for more than a decade — has now reared its ugly head. Even Clown Princess Yellen, Sec Treas, has conceded that inflation will more than double in the immediate future.
Just ponder that one thought — a new admin comes into office and in less than nine months more than doubles inflation and they act like it was a paper cut.
3. The price of gasoline is a cost component in every product — COGS cost of good sold, for you bean counters — made or transported in America. Everything.
Here is what YOY inflation looks like right now:
As you can see, ENERGY is the skunk at the garden party. It is a component of both Transportation and Housing.
[My personal road trip experience is that gas is up more than 100%. I like to buy gas at Sams Club. I paid $1.52/gal in Tuscaloosa, Ala a year ago. Today, it is right at $3.00/gal.]
As you can deduce, inflation will not be lower than 2% (FED target) of 4% (Sec Treas Yellen’s preposterous statement whilst testifying before the Senate at the prodding of Sen John Kennedy of Louisiana).
Inflation (note that the Producer Price Index went up by almost 9% last month) is accelerating. Even this monthly spreadsheet clearly shows that truth.
Fine, dear reader, energy is a huge component of the current inflationary upward spiral. It appears to be the largest single element of upward pressure.
The energy increases were caused by discrete actions undertaken by POTUS Biden via Executive Order. This was not a foot fault, this was a blunder of historic and monumental proportions and it is the driver of inflation.
Looking for where the inflation monkey was birthed? It was at the Resolute desk in the Oval Office at the tip of a pen wielded by President Joe Biden.
But, hey, what the Hell do I really know anyway? I’m just a Big Red Car. Sic ’em!