Episode 9 on fighting inflation. Milton Friedman.
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Writing everyone checks for $5k is not better, it would only cause more inflation.
One of the economists who influenced Ronald Wilson Reagan ⌠much to our benefit.
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Sure itâs a terrible idea, but itâs better than price controls if the government is trying to âdo somethingâ about inflation hurting average people. Price controls just means you canât buy things due to Russian style shortages and the goods go elsewhere.
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Better is a relative term. It can be the better move, while still not being a good move.
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Hope is not a strategy.
OK, so prices remain where they are while only price increases moderate!!
God save our Republic. 
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It was a slow day in the markets yesterday and I actually listened to Yellenâs testimony and Q&A before Congress. She was much worse than I had expected, or maybe thatâs just because as a government employee sheâs expected to largely be supportive of many of Bidenâs really bad policies (destroying energy independence for âgreenâ at high cost and too fast, affordable housing, cartel like international tax schemes to the detriment of US business and workers, etc).
Meanwhile, in other things I donât believe, here were some charts suggesting inflation might be coming down (or slightly less bad than it was recently).
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And this will be the kind of âdataâ that the Fed uses to back off of interest rate increases. Itâs coming much sooner than I expected, though. I was expecting at least a year before I had to lock in long term rates.
@shinobiâs 3 year add-on, bump-up, CD is starting to look a lot more interesting to me.
(written in a state of disbelief)
Guys way things are unfolding we are on the way to $10 NYMEX natural gas. I can scarcely believe my eyes. Must be a mistake, but of course itâs not.
I do not know how people will heat their homes this coming winter. And the price of electricity is gonna skyrocket!! Bear in mind:
At present natural gas consumers are benefitting from fixed price purchase contracts negotiated in the past. Such contracts typically priced natural gas in the vicinity of $4, plus or minus. However, importantly:
Those contracts do not go on forever. They expire. And when natural gas is repriced thereafter itâs gonna be a SHOCK to NG consumers of whatever sort.
Guys, itâs like a price increase time bomb just sitting there, ticking, waiting to go off.
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More from Biden / Yellen. Time to give up our Chinese trade tariffs in order to try to cut costs on midterm voters, nevermind about them deserving them for unfair trade.
- YELLEN SAYS CHINA GUILTY OF UNFAIR TRADE PRACTICES BUT SOME TARIFFS ON CHINESE GOODS DO NOT SERVE U.S. STRATEGIC INTERESTS
- Yellen Says China Duties Werenât Made to Serve Strategic Interests
- YELLEN SAYS BIDEN ADMINISTRATION LOOKING TO RECONFIGURE TARIFFS IN A WAY THAT WOULD BE MORE STRATEGIC
- YELLEN: SOME TARIFF REDUCTIONS MAY BE WARRANTED
Guess the Big Guy is getting another 10% from China. These tariffs are even bigger than the Ukraine giveaway.
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Blame Putin
*Blinken Says Global Food Insecurity Reaching âHistoricâ Levels
BLINKEN: 200 MILLION PEOPLE WORLDWIDE âSEVERELY FOOD INSECUREâ
He wants to sell Russian and Ukrainian wheat to the hungry world, but wants sanctions removed. I bet we let 'em starve.
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Sorry about your nat gas. Export facility blew up and domestic prices turned down today.
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She continued, "You know, this is, in large part, caused by (Russian President Vladimir) Putinâs aggression. You know, since Putin move troops to the border of Ukraine, gas prices have gone up over $1.40 a gallon, and the President is asking for Congress and others for potential ideas.
Well, the invasion didnât do crap, it was the sanctions we imposed after the invasion that has spiked the prices. The only idea thatâll have any immediate impact is to join China and resume buying [now cheap] Russian oil. Boosting domestic production would help, but there will be a lag before seeing any significant effect.
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Sure there is, we can blow up a LNG export terminal so we canât sell our gas to Europe at higher prices and have to sell it domestically.
Freeport LNG handles about 2 BCf/d of volume, which is about 1/6ths of the USAâs current export capacity.
I mean, they didnât do it on purpose, but it shows how much of pricing is driven by demand.
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Guess who definitely couldnât have seen it coming or done anything? Just after Bidenâs inauguration, turns out that infant formula whistleblower reported Abbottâs problems to OSHA, thatâs Feb 2021. I know he was busy governing by royal decree back then, too busy for practical stuff aside from putting people with trendy skin colors and sexual quirks in positions of power in excess of their experience. Thatâll show you America!
- Abbott and FDA Were Alerted to Alleged Safety Problems at Baby-Formula Plant in February 2021, Sources Say
- Abbott Received Former Employeeâs Warnings on Baby-Formula Plant Earlier Than Previously Known
- Abbott Investigated and Canât Confirm Allegations, Company Says
- February 2021 Whistleblower Complaint Included Allegations of Safety Issues at Sturgis Plant, Sources Say
- Abbott and FDA Were Alerted to Alleged Safety Problems at Baby-Formula Plant in February 2021, Sources Say â WSJ
âFrankly the inspection results were shocking,â FDA Commissioner Robert Califf said during the congressional hearing last month, comparing the conditions in Abbottâs plant in the most recent inspection to a muddy kitchen. âWe had no confidence in the integrity of the Abbott quality program at this facility.â
And speaking of food insecurity,
Teamsters Tell US Foods Work Stoppages Are Imminent
And the LA port union negotiations are less than a month away, so labor may flex their power and delay things to get even more pay and screw up the supply chains even more. Their contact expires at the end of June, and we donât have anything new in place yet.
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Next batch of inflation numbers are going to be bad. So bad the Biden admin is already warning us that theyâll be bad. We get May CPI this Friday morning , 6/10.
ON CONSUMER PRICES, EXPECTING ELEVATED PRICES: WHITE HOUSE
WHITE HOUSE SAYS EXPECTS INFLATION NUMBERS TO BE RELEASED AT END OF WEEK TO BE ELEVATED
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I think I said nearly on day one that the only way increasing domestic production can help with high global prices is to withdraw from the global market and keep all our domestic oil/gas domestic. I guess weâve now seen a little evidence of how true that is.
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Any chance Biden does as Reagan did with the Air Traffic Controllers?
I know itâs just a joke to even suggest that as an option, since we all know Biden will be right there picketing with them while at the same time insisting the food shortages were entirely unpredictable and completely out of his control. Everyone is entitled to get everything they want, with " " footing the bill for it all.
Yes, that is an Underpants Gnomes call-back.
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Yes, but heâll be picketing for his 10%. 
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Global food inflation
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