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Higher gas prices are good for my neck of the woods.
You're in Houston too right Pedro? if you are, I'm sure you've noticed our economy went to crap when the gas prices went down so much. Despite how happy it makes us at the pump, low gas prices lead to lots of layoffs at oil companies, and unemployed petrochemical workers have the trickle down effect of leading to unemployment in other fields also.
I just gracefully let your "point" sink into the swamp without too much comment, primarily because wasn't a particularly good one. Obviously, you can have increases in commodities prices WITHOUT liquidity injections by the central banks just as often as they occur with liquidity injections. There is not a one-to-one causal link, as the Fed Chairman herself will tell you. In most Congressional testimony by the Fed Chairman, you'll hear the Chairman detailing policy actions that the Fed may consider in after-the-fact responses to rising energy prices. It is always clear from such testimony that the Fed has ZERO control over commodities prices, but they may be able to mitigate the effects of high energy prices through Fed action.
When the Fed pump as much as they did into the markets it's going to go into commodities. We can fix this but we will not.
So far once again, you have not disputed my position. You've argued it wasnt intended (which is irrelevant).
Then you argue it didn't have to pump commodities. Again, irrelevant. It did.
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One thing you never hear in such testimony, however, is how the Fed Chairman intends to lower or raise energy prices by Fed actions. Because everyone who serve on the Federal Reserve Board knows that there is nothing they can really do to affect energy prices, for better or worse. Any action they may take is going to be reactive and after-the-fact.
You pump billions into the markets and commodities are going to rise. It doesn't have to be said.
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Which is not to say that commodities prices can't increase in an environment where more dollars come into circulation. Sometimes they do, on a nominal basis. In such cases, on an inflation-adjusted basis, however, the amount of purchasing power required to buy a given increment of energy is going to be roughly the same before and after.
Which is not to say that commodities prices can't increase in an environment where more dollars come into circulation. Sometimes they do, on a nominal basis. In such cases, on an inflation-adjusted basis, however, the amount of purchasing power required to buy a given increment of energy is going to be roughly the same before and after.
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Originally Posted by pknopp
Not for the poor.
Actually, I pay fees on every utility bill to subsidize the poor.
Which is not to say that commodities prices can't increase in an environment where more dollars come into circulation. Sometimes they do, on a nominal basis. In such cases, on an inflation-adjusted basis, however, the amount of purchasing power required to buy a given increment of energy is going to be roughly the same before and after.
Actually, I pay fees on every utility bill to subsidize the poor.
Do you have a gas guzzler? I hope so. You make so many threads about your fake-demise-flaming stories about your President Trump. Milllions upon Millions of Americans love Donald Trump. You need to get on board too and accept that he will be here making AMAZING changes for the next 8 years!
Never thought I would see the day that 18Montclair would start advocating drilling in ANWR.
Expect a future thread along the lines of "Trump wants to drill in ANWR and poison all the seals and Eskimo children because he hates cuddly critters and brown people"
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