What’s going on with the price of gas. Many places are seeing $5 gas and now we’re looking for $6 per gallon. How can businesses or people survive with this kind of fuel prices? The answer is they cannot survive. Those that can, it will force them to raise prices dramatically. Everything from burgers to flowers is going to cost more and then even more. Now that we understand that everything will cost more and a lot more, we should understand that we have the fuel and energy resources to counter all this but Biden will not use these resources.
Our President Joe Biden decided to shut down our production of energy and block the XL pipeline from Canada all to support the green lobby. Who are they to say to a President “shut it down?” The President did what they wanted. Did that stop Americans from using fuel? Of course not, and the American public had no idea that we started buying oil from Russia and even Iran.
The call to stop buying oil from Russia and Iran if done would cause an economic collapse in the USA as there would not be enough fuel for anything. Gas may be $10 a gallon for those that could even get it. This is what the green deal has got us. Shut down our production so we could become dependent on other countries, and we could transfer our wealth to them. Their life gets better and ours get worse.
Those that voted for Joe Biden can take the blame, but will they? No, they will blame it on Trump. That does have some validity because if Trump had not developed our energy resources, we would not have seen this increase in prices, they would have already been this high. Now the Biden administration blames it as those bad corporations that pay no taxes, forgetting the corporations do not pay taxes they only collect them for an ever voracious Democrat government.
Somehow some politicians still call for a “No Fly Zone” which would result in a MAJOR escalation of the war in Ukraine and would possibly spill out to the rest of Europe. If Russia is pushed back, we could see a nuclear response. Europe or maybe us would be the target. Is America ready for that over Ukraine? How many American families will stand up and volunteer their children to go and die in Ukraine?
Secondly, our government tells us to avoid the high gas prices by using Electric cars. However, the fact is that it takes energy to run those electric cars. That energy comes from fossil fuels, not green energy. Now some Americans don’t have the $50,000 to buy that electrical car so they will lose mobility. So, what, they are poor and have no political power, except to re-elect those who promise them more free stuff.
Green Energy is a fraud designed to make us spend money to buy non-US countries’ fuels and bankrupt American families and even our country. Does anyone who has traveled think that the closing of American production of oil will somehow cause the world to become greener? Those that believe that are totally uninformed. Think about it.
Welcome to Year 3 of the Chinese Virus. Here are some thoughts as we begin a new year under the Biden Build Back Broke Disintegration Plan:
According to the American Petroleum Institute, we have enough oil in North America to fuel every single passenger car and long-haul truck for the next 430 years. We have enough natural gas to provide electricity for every business and household for the next 535 years and enough coal to provide electricity for about 500 years. So, don’t you think that in 430 years we will have developed alternative fuel sources? Why then did Joe Biden sacrifice America’s energy independence, cease all exploration for oil and gas, abandon pipeline development and drive up prices of gasoline, heating oil, and jet fuel and make us once again dependent on foreign oil?
Isn’t it curious that in some states like California, Washington, Illinois, and New York, shoplifting of items less than $950 is not a crime but the Biden Build Back Better Spendalooza calls for hiring 87,000 IRS agents to monitor individual banking transactions of $600 or more? Fascinating.
We recently celebrated Christmas, Some neighbors refused to shout “Ho, Ho Ho” for fear that it might be insulting to Vice President Kamala Harris. No joke!
Someone needs to educate me as to how we are going to produce all the batteries needed to facilitate a transition away from fossil fuels to battery-driven vehicles when the basic ingredients for batteries are all found in rare minerals such as lithium, cobalt, and zinc and others, all of which must be mined in countries not exactly friendly to us. Also, if you have ever driven on the Cross Bronx Expressway or the 405 in Southern California and were stuck in traffic, how exactly will the repair truck reach a disabled vehicle before their battery dies…along with the batteries of all the other vehicles in traffic?
When will construction start to build the 500,000 battery charging stations Joe Biden told us about? Where will they be situated? Won’t they be powered by burning fossil fuels?
If you ever feel like you haven’t accomplished anything, try to remember that it took 20 years, trillions of dollars and four Presidents to replace the Taliban in Afghanistan with………. the Taliban.
If you feel your job is hard and you are unappreciated, think about the poor slob who serves as the sign language interpreter for Joe Biden.
Let me try to understand this: we can’t seem to find illegals to deport, but we can sure find them to give them money! How does that work?
If there was a barnyard election, the pigs would always vote for the person that feeds them and gives them treats, even though that same person is going to slaughter them someday. That same philosophy is the very definition of socialism.
Memo to Generation Z and the Woke Generation: The Stars and Stripes that fly over our Nation’s Capital and are wrapped around the coffins of our honored dead who sacrificed their lives to keep us free, is my Flag. I will never apologize for it. The Flag does not stand for skin color, race, or religion. It stands for freedom. Never forget that!
___________________________________________________
If you do not take an interest
in the affairs of your government,
then you are doomed to live under
the rule of fools.
Plato
P.S. This has just come out; Rep. Jim Jordan related that he sat in a congressional hearing where Ro Khanna, a Democrat member from California had the top oil and gas executives there in front of the committee and he badgered every one of them, asking them “Will you pledge to decrease oil production this year?”. This is the Biden administration working to kill American production of oil. Transferring more America Wealth to other countries. Makes you wonder who is funding the Green Lobby.
TIME FOR PLAN B !!
At approximately 9am local time on February 21, 1972, a Boeing 707 airplane dubbed Spirit of ‘76 landed in Shanghai’s Hongqiao airport.
The airplane’s main door opened, and out walked US President Richard Nixon.
The trip shocked the world. There had been no formal communication or diplomatic ties between the US and China for 25 years. And Nixon’s voyage not only normalized relations between the two countries, but it kickstarted decades of worldwide economic growth.
Back then, the US was the richest and most powerful economy in the world. But as a consequence of that prosperity, the US was also a very expensive place to produce.
US companies were on the lookout for inexpensive, foreign manufacturing hubs where they could cheaply produce their products and sell them back to the US market.
China became that cheap manufacturing hub.
Eventually China was producing just about everything from T-shirts to antibiotics. And because the cost of production was so low in China, consumers around the world benefited.
Combined with cheap oil, a functioning global supply chain, and relative peace and stability, cheap Chinese production helped keep prices low and constrain inflation for decades.
But these trends are rapidly coming to an end.
For starters, China is now an economic superpower; many of its largest cities, in fact, have a per-capita GDP that exceeds the United States and Western Europe.
Wages have increased dramatically in China over the years because of this increase in prosperity, which means that it’s no longer cheap to manufacture most lower-end products there.
A lot of manufacturing has already shifted to cheaper places like Vietnam, Bangladesh, etc. But even those countries are quickly becoming more expensive places to produce. And they don’t have nearly enough capacity to keep up with global manufacturing demand.
Some large companies are starting to bring their manufacturing back home. This is becoming more popular now as global stability wanes.
Plus businesses learned during the COVID-19 lockdowns, and the resulting global supply chain dysfunction, that manufacturing at home is more reliable.
That may be true. But manufacturing in a ‘rich’ country is also a LOT more expensive.
So, regardless of whether a business chooses to manufacture at home or abroad, they’re almost guaranteed to suffer higher production costs. And that means consumers will be paying more.
This trend is a massive reversal from decades of cheap foreign production that kept prices low. But it only scratches the surface of why inflation will likely persist for years to come.
(British economist Charles Goodhart, a former central bank official, describes this phenomenon in his new book The Great Demographic Reversal. It’s definitely worth reading to understand this trend.)
Historic shifts in the labor market will also be a major contributor to inflation.
For example, there have never been more retirees in the history of the world than there are right now. And their numbers are growing.
According to Federal Reserve data, an additional 1.5 million people in the United States retired early during the first year of the pandemic. There will likely be more to come.
Plus US Labor Department statistics show that millions of other individuals, including young people, abandoned the idea of working altogether because of the pandemic.
Traditionally there’s a steady balance between the number of jobs in the economy, and the number of workers in the labor force. Sometimes there are shocks, like during the Great Recession in 2008, when millions of jobs vanished, practically overnight.
Now the converse has taken place: millions of workers have vanished, practically overnight.
The end result is that there are 11.3 million unfilled jobs in the United States– a record high– because so many people simply quit the labor force.
Of course, another key labor trend is that younger workers aren’t interested in most traditional jobs.
Countless teenagers aspire to be Instagram starlets, or to live-stream themselves playing video games for a living. They have little interest in construction, transportation, or manufacturing jobs.
So, in summary, we have former ‘low cost’ manufacturing hubs becoming a lot more expensive. Plus a constrained work force back home that limits production and pushes costs higher.
This is all highly inflationary.
And there’s absolutely nothing the government or central bank can do about it. Gen Z 20-somethings aren’t going to suddenly decide to start working traditional jobs just because the Federal Reserve raises interest rates by 0.25%.
Most likely the politicians will make it much worse– which is another key factor in future inflation.
Nancy Pelosi stated on Friday that inflation was solely Vladimir Putin’s fault and insisted that their multi-trillion dollar deficit spending is “reducing the national debt” and “not adding to inflation.”
The President, meanwhile, has blamed inflation on “greed”, while the Federal Reserve insists that higher prices are a result of supply chain dysfunction.
Not one of these institutions– Congress, the White House, or the Fed– seems capable of looking at their own actions.
The Fed refuses to consider that inflation is due to their dizzying expansion of the US money supply– the largest since 1943.
Congress refuses to consider that inflation is due to their insane deficit spending– the largest ever in US history.
And the White House refuses to consider that inflation is due to its fetish for anti-competitive regulations and constant attacks on capitalism.
So, when the three key institutions charged with keeping inflation in check refuse to understand why there’s a problem, it’s hard to imagine they’re going to fix it.
There are plenty of other lingering inflation factors as well; geopolitical conflict is obviously inflationary. COVID-19 continues to be very inflationary. Environmental fanaticism is inflationary.
And just like the challenge of increased manufacturing costs, and labor market demographic trends, these issues cannot be magically fixed by politicians or central bankers.
In essence, policymakers are completely powerless to do anything about inflation.
There’s an irrational hope that inflation will quickly reverse, and prices will return to 2019 levels– just as soon as Putin leaves Ukraine… and the global supply chain dysfunction works itself out.
But this is wishful thinking.
First, both of those resolutions could take a very long time.
But more importantly, the trends I outlined are much larger and could keep prices elevated for years to come.
So, if your “Plan A” is depending on the government for prosperity and price stability, it’s time to take a hard look at your Plan B.
To your freedom,